In-Hand Salary Calculator India — CTC to Take-Home FY 2026-27
Enter your CTC — get monthly take-home with FY 2026-27 verified tax slabs, both regimes compared.
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How CTC is converted to in-hand salary
CTC (Cost to Company) includes components you never receive in your bank account. The calculator first removes employer-side costs — employer EPF contribution (12% of basic) and gratuity provision (4.81% of basic) if included in your CTC — to arrive at gross salary. From gross, it deducts income tax (computed on the FY 2026-27 slabs after the ₹75,000 standard deduction), your own EPF contribution (12% of basic), and state professional tax. What remains is your annual in-hand, divided by 12 for the monthly figure. Basic salary defaults to 50% of CTC — the most common structure — but is fully editable because your offer letter may differ.
New regime vs old regime for FY 2026-27
Budget 2026 made no changes to slab rates: the new regime keeps its seven slabs from nil (up to ₹4 lakh) to 30% (above ₹24 lakh), the ₹75,000 standard deduction, and the Section 87A rebate of up to ₹60,000 that makes taxable income up to ₹12 lakh effectively tax-free — meaning zero tax on salaries up to ₹12.75 lakh. The old regime retains its ₹2.5 lakh exemption, ₹50,000 standard deduction, and access to deductions like 80C, HRA and home-loan interest. The calculator computes both simultaneously and shows exactly how much the better regime saves you — for most salaried taxpayers without large deductions, the new regime wins.
EPF, professional tax and gratuity explained
EPF takes 12% of your basic salary from your side (reducing take-home) while your employer contributes a matching 12% — the employer share is part of CTC but never appears in your payslip earnings. Professional tax is a state levy: ₹2,500/year in Maharashtra and Tamil Nadu, ₹2,400 in Karnataka and Gujarat, and zero in Delhi, UP and Haryana — the state dropdown applies the correct amount. Gratuity (4.81% of basic) is money your employer provisions for your exit benefit after 5 years of service; many offer letters count it inside CTC, which is why the toggle exists — switch it on if your offer letter lists it.
How CTC becomes in-hand salary: the full deduction chain
Cost to Company (CTC) is everything your employer spends on you — not what lands in your bank account. The calculator walks the same chain HR does: CTC splits into basic salary (typically 50%, editable above), HRA, and special allowance; then out come employer EPF and gratuity provision (CTC components that never reach your account), your own 12%-of-basic EPF contribution, professional tax based on your state, and income tax under the regime you pick. What remains, divided by twelve, is your true monthly in-hand — usually 70–80% of the naive CTC÷12 figure most offer letters imply.
New regime FY 2026-27: why salaries up to ₹12.75 lakh pay zero tax
Under the new tax regime for FY 2026-27, the ₹75,000 standard deduction reduces a ₹12.75 lakh salary to ₹12 lakh of taxable income, and the Section 87A rebate of up to ₹60,000 then cancels the entire tax on it — making that income effectively tax-free for salaried individuals. Just above the threshold, marginal relief phases tax in gradually so a small raise never leaves you worse off. All slab values, the rebate, and the standard deduction in this calculator live in a verified config checked against the Income Tax Department portal and Budget 2026, with the verification date shown in the footer.
Old vs new regime: the ₹4–4.5 lakh deduction rule of thumb
The old regime only wins if your combined deductions — Section 80C investments, HRA exemption, home-loan interest, 80D health premiums — exceed roughly ₹4–4.5 lakh a year, because that is the break-even where its lower base exemption and deductions overcome the new regime's wider slabs and larger rebate. For most salaried taxpayers without a home loan, the new regime now pays more in hand. The regime toggle above computes both side by side with the exact rupee difference for your CTC, so the choice becomes arithmetic, not guesswork. Once you know your monthly surplus, our SIP and PPF calculators show what it can build.
Frequently asked questions
What is the in-hand salary for a 12 LPA CTC in FY 2026-27?
Roughly ₹85,000–90,000 per month under the new regime with a standard 50% basic structure — income tax is near zero because taxable income after the standard deduction stays within the ₹12 lakh rebate limit, so deductions are mainly your EPF contribution and professional tax.
Is income up to ₹12.75 lakh really tax-free in FY 2026-27?
Yes, for salaried individuals under the new regime. The ₹75,000 standard deduction brings a ₹12.75 lakh salary down to ₹12 lakh taxable, and the Section 87A rebate (up to ₹60,000) cancels the entire tax on it. Above that, marginal relief phases the tax in gradually.
Why is my in-hand salary so much lower than my CTC?
CTC includes employer EPF, gratuity provision, insurance premiums and sometimes one-time bonuses — money that never reaches your monthly account. Add your own EPF deduction, income tax and professional tax, and monthly in-hand typically lands at 70–80% of CTC÷12.
Which tax regime should I choose for FY 2026-27?
If your total deductions (80C, HRA, home-loan interest, 80D) exceed roughly ₹4–4.5 lakh, the old regime may win; otherwise the new regime is better for almost everyone. The calculator shows both side by side with the exact saving.
Are these tax slabs verified for FY 2026-27?
Yes — slabs, the 87A rebate and the standard deduction were verified against the Income Tax Department portal and Budget 2026 announcements (which made no slab changes). The verification date is shown in the tool footer.
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