CTC to in-hand salary calculator
Turn an annual CTC into monthly in-hand pay under the new and old tax regimes, so the offer letter shows the number a candidate will actually see.
In hand
New regime
₹91,491
a month, after ₹0 TDS
Old regime
₹80,496
a month, after ₹10,995 TDS
Put the new regime number in the offer letter, with a line saying it depends on their tax choice.
Check the 50% wage rule. Allowances are more than half of pay, so PF and gratuity may need a wider wage base.
ESI applies. Gross pay is ₹21,000 a month or less, so0.8% comes off their pay and 3.3% is paid by the company, inside the CTC.
A surcharge applies. On tax for taxable income above ₹50 lakh: 10% above ₹50 lakh, 15% above ₹1 crore, 25% above ₹2 crore, and 37% above ₹5 crore in the old regime, with marginal relief.
| New regime | Old regime | |
|---|---|---|
| Gross salary | ₹94,691 | ₹94,691 |
| Employee PF | −₹3,000 | −₹3,000 |
| Employee ESI | ₹0 | ₹0 |
| Professional tax | −₹200 | −₹200 |
| Income tax (TDS) | ₹0 | −₹10,995 |
| In hand | ₹91,491 | ₹80,496 |
| Basic pay | ₹48,000 |
|---|---|
| HRA | ₹19,200 |
| Special allowance | ₹27,491 |
| Gross salary | ₹94,691 |
| Employer PF | ₹3,000 |
| Employer ESI | ₹0 |
| Gratuity provision | ₹2,309 |
| CTC | ₹1,00,000 |
| New regime | Old regime | |
|---|---|---|
| Taxable income | ₹10,61,292 | ₹10,47,892 |
| Tax | ₹0 | ₹1,26,868 |
| Surcharge | ₹0 | ₹0 |
| Cess (4%) | ₹0 | ₹5,075 |
| For the year | ₹0 | ₹1,31,942 |
How it works
- CTC is gross salary plus the company's PF, a gratuity provision of 4.81% of basic, and ESI when it applies. The special allowance is what's left.
- In hand is gross salary minus the employee's PF (and ESI), professional tax and income tax, spread evenly across the year.
- New regime: a ₹75,000 standard deduction, and no tax on taxable income up to ₹12 lakh. Old regime: a ₹50,000 standard deduction, professional tax, the HRA exemption, investments up to ₹1,50,000 (their own PF counts) and other deductions.
- Variable pay is left out of monthly in-hand. Show it separately in the offer.
- Built for tax year 2026-27 (April 2026 to March 2027).
The worked examples, the 50% wage rule and how to show all this in an offer letter are in our guide, CTC vs In-Hand Salary: How to Explain an Offer in India.
Where each number comes from
| Number | Used here | Official source |
|---|---|---|
| New regime slabs | nil up to ₹4 lakh, 5% above ₹4 lakh, 10% above ₹8 lakh, 15% above ₹12 lakh, 20% above ₹16 lakh, 25% above ₹20 lakh, 30% above ₹24 lakh | Income-tax Act, 2025 (as amended by the Finance Act, 2026)Section 202(1)Checked 21 October 2026 |
| New regime standard deduction | ₹75,000 | Income-tax Act, 2025Section 19(1), table, item 2Checked 21 October 2026 |
| New regime: no tax up to | ₹12 lakh of taxable income, with marginal relief | Income-tax Act, 2025Section 156Checked 21 October 2026 |
| Old regime slabs (below 60) | nil up to ₹2.5 lakh, 5% above ₹2.5 lakh, 20% above ₹5 lakh, 30% above ₹10 lakh | Finance Act, 2026First Schedule, Part I-B, Paragraph A(I)Checked 21 October 2026 |
| Old regime standard deduction | ₹50,000 | Income-tax Act, 2025Section 19(1), table, item 2Checked 21 October 2026 |
| Old regime rebate | ₹12,500 up to ₹5 lakh of taxable income | Income-tax Act, 2025Section 156Checked 21 October 2026 |
| Investments (80C), old regime | ₹1,50,000 a year | Income-tax Act, 2025Section 123 (the old section 80C)Checked 21 October 2026 |
| Health and education cess | 4% | Finance Act, 2026Section 3(15)Checked 21 October 2026 |
| Surcharge, new regime | 10% above ₹50 lakh, 15% above ₹1 crore, 25% above ₹2 crore | Finance Act, 2026Section 3(4)(b) and 3(5)Checked 21 October 2026 |
| Surcharge, old regime | 10% above ₹50 lakh, 15% above ₹1 crore, 25% above ₹2 crore, 37% above ₹5 crore | Finance Act, 2026First Schedule, Part I-B, Paragraph FChecked 21 October 2026 |
| PF, employee and employer | 12% each | EPFO: FAQs on the revised wage ceilingQuestions 12 and 13Checked 21 October 2026 |
| PF wage cap | ₹25,000 a month | Gazette of India: S.O. 5109(E), 17 September 2026₹25,000 a month from 17 September 2026 (₹15,000 before)Checked 21 October 2026 |
| ESI applies | Gross pay up to ₹21,000 a month | ESIC: coverageChecked 21 October 2026 |
| ESI rates | 0.75% employee, 3.25% employer | ESIC: contributionChecked 21 October 2026 |
| Gratuity provision | 4.81% of basic | Code on Social Security, 2020Section 53 and its Explanation 3Checked 21 October 2026 |
| The 50% wage rule | Allowances above 50% of pay count as wages | Code on Wages, 2019Section 2(y), provisoChecked 21 October 2026 |
| Professional tax, most a year | ₹2,500 | Constitution of IndiaArticle 276(2)Checked 21 October 2026 |
| Professional tax we start with | ₹200 a month (₹300 in February) | Karnataka Commercial Taxes Department: professional tax₹200 a month and ₹300 in February, from ₹25,000 a monthChecked 21 October 2026 |
General information, not advice. Check with your CA.