CTC to Take-Home Salary Calculator
Convert your annual CTC (Cost to Company) to monthly in-hand salary. See the full breakdown: Basic, HRA, PF deductions, Professional Tax, and estimated income tax — all on one page.
Salary Details
Basic = ₹4,00,000/year
Monthly Take-Home
₹77,930
Annual: ₹9.35 Lakh
How It Works
CTC (Cost to Company) is the total annual cost an employer bears for an employee — it includes salary, PF contributions (both employee and employer share), gratuity provision, insurance premiums, and other benefits. CTC is NOT what you actually receive. Your take-home (in-hand) salary is significantly lower due to: Employee PF deduction (12% of Basic, capped at ₹15,000 basic), Professional Tax (state-specific, typically ₹200/month), and Income Tax (TDS deducted by employer monthly). The standard CTC structure in India splits salary into Basic (~40–50% of CTC), HRA (~40–50% of Basic), and Special Allowance (remainder). Employer PF and Gratuity provision are part of CTC but are NOT part of your monthly take-home.
Formula
Take-Home = Gross Salary − Employee PF (12% of Basic) − Professional Tax − Income Tax (TDS). Gross = Basic + HRA + Special Allowance + other allowances.
Frequently Asked Questions
What is CTC and how does it differ from take-home salary?
CTC (Cost to Company) is the total annual expenditure by an employer on an employee, including salary, employer's PF contribution (12% of Basic), gratuity provision (~4.81% of Basic), insurance, and other benefits. Take-home salary = CTC minus employer PF − employee PF (12% of Basic) − Professional Tax − Income Tax TDS − any other deductions. For a ₹10 LPA CTC, actual monthly take-home is typically ₹65,000–₹75,000 depending on tax bracket.
What is the standard salary structure in India?
Typical Indian corporate salary structure: Basic = 40–50% of CTC (determines PF, gratuity); HRA = 40–50% of Basic (higher for metro cities); Special Allowance = CTC − Basic − HRA − employer PF − gratuity provision − other components. Some companies add LTA (Leave Travel Allowance, ₹15,000–₹50,000/year), medical allowance (₹15,000/year tax-free under old regime), and performance bonuses. The split varies by company and negotiation.
How is PF calculated and deducted?
Employee PF = 12% of Basic Salary (deducted from your salary). Employer PF = 12% of Basic (of which 8.33% goes to EPS — Employees' Pension Scheme, capped at ₹1,250/month — and 3.67% to EPF). For employees with Basic > ₹15,000/month, PF is mandatorily calculated on ₹15,000 (employees can choose to contribute on full Basic). PF earns tax-free interest (8.25% currently). Employee PF is part of your savings, not a tax — you get it back at retirement or resignation.
What is Professional Tax and how much is it?
Professional Tax is a state-level tax levied on salaried employees. Not all states levy it — major states that do: Maharashtra (up to ₹2,500/year, deducted as ₹200/month except one month at ₹300), Karnataka (₹2,400/year), Andhra Pradesh, Tamil Nadu, West Bengal. The maximum is ₹2,500/year. Professional Tax paid is deductible under Section 16(iii) for income tax purposes. States like Delhi, Rajasthan, Haryana do NOT levy Professional Tax.
Is the employer's PF contribution part of my income?
Yes — employer PF contribution (12% of Basic) is part of your CTC but it goes directly into your PF account, not your bank account. It is NOT taxable as income (up to ₹7.5 lakh/year combined employer PF + NPS + superannuation). You can withdraw employer PF after leaving the job (after 5 years to be tax-free, partial withdrawal possible earlier for specific purposes). Gratuity provision in CTC similarly goes to a trust fund and is paid out after 5 years of service.
How is income tax deducted from salary?
Employers deduct TDS (Tax Deducted at Source) from monthly salary under Section 192. At the start of the financial year, you declare your investment proofs (80C, HRA rent receipts, etc.) and the employer calculates estimated annual tax liability, then deducts it equally over the remaining months. If actual investments differ from declarations, the shortfall is deducted in the last few months. The full tax computation depends on total income including salary + other income.