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Estimated monthly take-home
Want the exact tax figure?
This estimate uses standard assumptions. For a precise income-tax number with capital gains, house property and all deductions, use the full ITR calculator.
Open the ITR Calculator → HRA Exemption CalculatorWhat is take-home (in-hand) salary?
Your take-home salary is the amount that actually lands in your bank account each month after all deductions. It is almost always lower than the CTC (cost to company) your offer letter advertises, because CTC bundles in costs the employer pays on your behalf — the employer's EPF contribution and gratuity — plus deductions like your own EPF, professional tax and income tax (TDS).
CTC vs gross vs net salary
- CTC: the total annual cost to the employer, including employer EPF, gratuity, bonus and every allowance.
- Gross salary: CTC minus the employer's own contributions (employer EPF and gratuity). This is your salary before your deductions.
- Net / in-hand salary: gross salary minus employee EPF, professional tax and income tax. This is your monthly take-home.
The usual salary structure in India
A typical private-sector salary breaks CTC into a basic pay (usually 40–50% of CTC), House Rent Allowance (HRA) (often 40–50% of basic), a special allowance that balances the rest, and employer costs (EPF and gratuity). Your EPF and the taxable portion of HRA are the biggest levers on your take-home, which is why this calculator lets you set the basic and HRA percentages.
New vs Old regime and your take-home
Under the New regime for FY 2025-26, slab rates are lower and a section 87A rebate makes income up to ₹12 lakh effectively tax-free, but you cannot claim HRA, 80C or 80D. The Old regime has higher rates but lets you deduct HRA, 80C (including your EPF), 80D and more. Toggle the regime above to see which leaves you with more in hand — for most salaried people without heavy deductions, the New regime wins. Read the full New vs Old regime comparison.
Tips to increase your take-home
- Claim HRA correctly (Old regime) — pay rent and keep proof; see the HRA exemption guide.
- Use employer NPS (80CCD(2)) — deductible even in the New regime, so it lowers tax without lock-in of your own money.
- Compare regimes every year — your deductions change, and so does the better regime.
- Understand your EPF — it reduces take-home now but builds a tax-free retirement corpus; see the EPF calculator.
Frequently asked questions
How is in-hand salary calculated from CTC?
In-hand salary is gross salary minus your own deductions. Gross salary is CTC minus employer contributions (employer EPF and gratuity). From gross you subtract employee EPF (12% of basic), professional tax and income tax to get monthly take-home.
Does CTC include employer PF and gratuity?
Usually yes. CTC includes the employer's EPF contribution and gratuity, which are an employer cost that never reaches your account. Uncheck the boxes above if your company quotes CTC without them.
Which regime gives higher take-home?
For most salaried people without large deductions, the New regime gives higher take-home due to lower rates and the ₹12 lakh rebate. The Old regime can win with large HRA, 80C and 80D claims. Use the toggle to compare.
Is EPF deducted from my salary?
Yes — your employee EPF contribution (12% of basic) is deducted from your salary. The employer also contributes, but that comes from the CTC pool, not your gross. EPF is your money and grows tax-free.
Why is my in-hand lower than my CTC/12?
Because CTC includes employer EPF, gratuity and annual bonus that are not part of your monthly cash pay, and your gross is further reduced by employee EPF, professional tax and income tax.