CTC to In-Hand Salary Calculator 2026
Convert your CTC to in-hand salary. Compare Old vs New tax regime side by side.
₹84.0K
Old Regime/Month
₹90.2K
New Regime/Month
₹74.3K
Tax (Old)
₹0
Tax (New)
New Tax Regime saves you ₹74,318/year
Salary Details
₹
12 Lakh
Your total Cost to Company per year
% of CTC
30% of CTC50% of CTC
% of CTC
0% of CTC30% of CTC
12% employee + 12% employer contribution
₹
25 Thousand
For HRA exemption calculation (Old Regime)
Deductions (Old Regime)
Note: These deductions are only applicable under the Old Tax Regime. New Regime does not allow these deductions but has lower tax rates.
₹
PPF, ELSS, LIC, etc. Max ₹1.5L (EPF already counted)
₹
Self: ₹25K, Parents: ₹25K-50K
₹
Additional ₹50K deduction for NPS
₹
Max ₹2L for self-occupied property
₹
80E (Education loan), 80G (Donations), etc.
Monthly In-Hand (Old)
₹84,007
Monthly In-Hand (New)
₹90,200
Annual Tax (Old)
₹74,318
Annual Tax (New)
₹0
Old Regime vs New Regime Comparison
| Component | Old Regime | New Regime |
|---|---|---|
| Gross Income | ₹11,42,400 | ₹11,42,400 |
| Standard Deduction | ₹50,000 | ₹75,000 |
| HRA Exemption | ₹2,40,000 | Not Allowed |
| Section 80C | ₹57,600 | Not Allowed |
| Section 80D | ₹0 | Not Allowed |
| NPS 80CCD(1B) | ₹0 | Not Allowed |
| Home Loan Interest | ₹0 | Not Allowed |
| Total Deductions | ₹3,47,600 | ₹75,000 |
| Taxable Income | ₹7,94,800 | ₹10,67,400 |
| Income Tax | ₹71,460 | ₹0 |
| Cess (4%) | ₹2,858 | ₹0 |
| Total Tax | ₹74,318 | ₹0 |
| Professional Tax | ₹2,400 | ₹2,400 |
| EPF Deduction | ₹57,600 | ₹57,600 |
| Annual In-Hand | ₹10,08,082 | ₹10,82,400 |
| Monthly In-Hand | ₹84,007 | ₹90,200 |
| Effective Tax Rate | 6.5% | 0.0% |
New Tax Regime is better for you
You save ₹74,318 per year
Your Salary Breakdown
Basic Salary (Annual)₹4,80,000
HRA (Annual)₹2,40,000
Bonus/Variable₹1,20,000
Special Allowance₹3,02,400
Employer EPF₹57,600
Total CTC₹12,00,000
Key Points to Remember
- New Regime is default from FY 2023-24. You need to opt out for Old Regime.
- Standard deduction is ₹75,000 in New Regime and ₹50,000 in Old Regime.
- EPF contribution counts towards Section 80C limit (₹1.5 lakh).
- Tax rebate under 87A: ₹12L (New) and ₹5L (Old) taxable income limit.
Frequently Asked Questions
What is CTC and how is it different from in-hand salary?
CTC (Cost to Company) is the total amount your employer spends on you annually, including basic salary, allowances, bonuses, EPF contribution, gratuity, and other benefits. In-hand salary (or take-home salary) is what you actually receive after deductions like EPF, professional tax, and income tax. Typically, in-hand salary is 60-75% of CTC depending on your tax regime and deductions.
Which tax regime should I choose - Old or New?
Choose New Regime if: you don't have significant deductions (rent, home loan, 80C investments) or if your CTC is below ₹12 lakh. Choose Old Regime if: you pay rent in a metro city, have a home loan, max out 80C investments, and have health insurance premiums. As a rule of thumb, if your total deductions exceed ₹3-4 lakh, Old Regime may be better.
What is the standard deduction for salaried employees?
Standard deduction is a flat deduction from your gross salary. In the New Tax Regime (FY 2024-25 onwards), it's ₹75,000. In the Old Regime, it's ₹50,000. This deduction is automatic - you don't need any investment or proof to claim it.
How is HRA exemption calculated?
HRA exemption is the minimum of: (1) Actual HRA received, (2) 50% of basic salary (metro cities) or 40% (non-metro), or (3) Rent paid minus 10% of basic salary. This exemption is only available under the Old Tax Regime. If you live in your own house or don't pay rent, HRA becomes fully taxable.
What is professional tax and who pays it?
Professional tax is a state-level tax on income from employment or profession. Most states charge ₹200/month (₹2,400/year), with some variation. It's deducted from your salary by your employer. Maharashtra, Karnataka, West Bengal, Andhra Pradesh, and others levy this tax. Some states like Delhi, Haryana, and UP don't have professional tax.
How does EPF affect my in-hand salary?
EPF (Employee Provident Fund) is a mandatory retirement savings scheme. Employee contribution is 12% of basic salary (deducted from your salary), and employer contribution is another 12% (part of your CTC). While EPF reduces your monthly in-hand, it's tax-advantaged savings - your contribution qualifies for 80C deduction, and the corpus is tax-free on withdrawal after 5 years.
What percentage of CTC is typically the basic salary?
Basic salary is usually 35-50% of CTC in Indian companies. A higher basic means higher HRA and EPF contributions. Some companies keep basic low (35-40%) to reduce EPF liability, while others keep it higher (45-50%) for better gratuity and HRA benefits. The ideal basic % depends on your tax planning needs.
What is Section 87A tax rebate and am I eligible?
Section 87A provides a tax rebate (reduction in tax liability) for individuals with taxable income below certain limits. Under New Regime: If taxable income is up to ₹12 lakh, you get a rebate making tax effectively zero. Under Old Regime: If taxable income is up to ₹5 lakh, you get a rebate of up to ₹12,500. Note: Rebate is only for individuals, not HUFs.
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