tax
CTC to In-hand Salary: What You Actually Take Home
By Himanshu Kumar Gupta · · 6 min read
A ₹15 lakh CTC gives about ₹1,11,326 a month in hand under the new tax regime. That assumes basic pay is 40% of CTC, no variable pay, and PF on the ₹15,000 wage ceiling.
Why in-hand is lower than CTC
CTC is what the company spends on you. Part of it never reaches your bank account:
1. Employer PF and gratuity are counted in CTC but not paid monthly. Take them out and you get gross salary.
2. From gross salary, your own PF, professional tax and income tax are deducted.
3. What is left is your in-hand pay.
Breakup of a ₹15 lakh CTC
| Item | Yearly amount |
|---|---|
| CTC | ₹15,00,000 |
| Basic (40% of CTC) | ₹6,00,000 |
| Employer PF (12% of capped basic) | − ₹21,600 |
| Gratuity (4.81% of basic) | − ₹28,860 |
| Gross salary | ₹14,49,540 |
| Employee PF | − ₹21,600 |
| Professional tax | − ₹2,400 |
| Income tax (new regime) | − ₹89,628 |
| In-hand per year | ₹13,35,912 |
| In-hand per month | ₹1,11,326 |
In the new regime, tax is worked out on gross salary minus the ₹75,000 standard deduction. The 87A rebate makes tax nil when taxable income is up to ₹12 lakh.
In-hand salary by CTC (new regime)
| CTC | Gross salary | Employee PF | Income tax | Monthly in-hand | In-hand ÷ CTC |
|---|---|---|---|---|---|
| ₹8 lakh | ₹7,63,008 | ₹21,600 | ₹0 | ₹61,584 | 92% |
| ₹12 lakh | ₹11,55,312 | ₹21,600 | ₹0 | ₹94,276 | 94% |
| ₹15 lakh | ₹14,49,540 | ₹21,600 | ₹89,628 | ₹1,11,326 | 89% |
| ₹20 lakh | ₹19,39,920 | ₹21,600 | ₹1,79,903 | ₹1,44,668 | 87% |
| ₹30 lakh | ₹29,20,680 | ₹21,600 | ₹4,51,052 | ₹2,03,802 | 82% |
Same assumptions throughout: basic at 40% of CTC, PF on capped basic, gratuity included in CTC, ₹2,400 professional tax and no variable pay.
Up to about ₹12 lakh CTC, in-hand pay is a high share of CTC because there is no income tax. Above that, tax takes a growing share.
Employer and employee PF are not lost. Both go into your EPF account and earn interest until you withdraw. See how they grow in the EPF calculator.
Read your offer letter
Look for four things: basic pay, variable pay, whether PF is on capped or full basic, and whether gratuity sits inside CTC. Joining bonuses and insurance premiums are sometimes counted in CTC too. These do not reach you every month.
What changes your number
- Variable pay or bonus. If part of CTC is variable, your fixed monthly pay is lower. You get the rest when it is paid.
- PF on full basic. Some employers deduct PF on the full basic. That lowers in-hand pay but builds more retirement savings.
- Old regime. With rent of ₹20,000 in a metro and ₹50,000 of extra 80C, the old regime tax on a ₹15 lakh CTC is about ₹1,62,408, against ₹89,628 in the new regime. In-hand pay is about ₹1,05,261 a month. Check which is better for you.
- Professional tax depends on where you work. Check your payslip.
Work out your own
Enter your CTC and structure in the salary calculator. If you pay rent, work out the exemption in the HRA calculator. Then pick your regime with the old vs new regime calculator.
Frequently asked questions
- What is the in-hand salary for ₹15 lakh CTC?
- About ₹1,11,326 a month in the new regime, with basic at 40% of CTC and no variable pay. It changes with your salary structure.
- What is the in-hand salary for ₹12 lakh CTC?
- About ₹94,276 a month in the new regime on the same assumptions. Income tax is nil because taxable income stays under ₹12 lakh.
- Why is my in-hand salary less than CTC ÷ 12?
- CTC includes employer PF and gratuity, which are not paid monthly. Your own PF, professional tax and income tax are also deducted.