CTC to In-Hand Salary Calculator India FY 2026-27 — Free, Accurate, Instant
CTC to In-Hand Salary Calculator India — FY 2026-27
CTC → In-Hand Salary Calculator — FY 2026-27
Estimates only. EPF capped at ₹1,800/month. Professional tax ₹200/month. Gratuity (4.81% of basic) is in CTC but paid as lump sum after 5 years — not in monthly take-home. New regime is default from FY 2026-27; 80C/80D not available in new regime. 4% health & education cess applied. Budget 2026 made no changes to FY 2026-27 slabs.
How to read your results
The calculator compares the new tax regime and old tax regime side by side and highlights which one saves you more money. In most cases for FY 2026-27, the new regime is better — unless you have high rent, a home loan, and maximum 80C investments simultaneously.
The monthly breakup shows the journey from your gross salary to your actual take-home in four steps:
- Start with your gross salary (CTC minus employer EPF and gratuity accrual)
- Subtract employee EPF — 12% of basic salary, usually capped at ₹1,800/month
- Subtract professional tax — typically ₹200/month (not levied in Delhi, Haryana)
- Subtract income tax TDS — deducted monthly based on your estimated annual tax
What remains is your in-hand salary — the amount credited to your bank account every month.
Why your in-hand is lower than your CTC — the three reasons
Reason 1: Employer EPF is in your CTC but not your paycheck. Your employer contributes 12% of your basic salary to your EPF account every month. This money is yours — it goes into your provident fund and earns 8.25% interest tax-free. But it never touches your salary account. It shows up in your CTC, disappears from your take-home, and reappears as a lump sum when you retire or change jobs.
Reason 2: Gratuity accrual is in your CTC. Every year, your employer sets aside 4.81% of your basic salary as gratuity provision. You receive this as a lump sum only after five years of continuous service with the same employer. Until then, it sits in your CTC but not in your bank account.
Reason 3: Income tax TDS is deducted monthly. Your employer deducts estimated income tax at source (TDS) every month based on your projected annual income. This is the largest variable gap for higher CTCs — at ₹20 LPA under the new regime, income tax deduction alone can be ₹15,000–₹20,000 per month.
New regime vs old regime — which should you choose in 2026?
The new tax regime is the right choice for most salaried employees in FY 2026-27. Here is when each regime wins:
| Your situation | Likely better regime |
|---|---|
| Income under ₹12.75 LPA, minimal deductions | New regime — zero tax |
| Income ₹12–25 LPA, standard 80C investments, no home loan | New regime — lower rates outweigh deductions |
| Income ₹15–30 LPA, home loan interest ₹2L + HRA + full 80C ₹1.5L + 80D ₹25K | Old regime — run both in the calculator above |
| Income above ₹25 LPA, minimal deductions | New regime — 30% slab kicks in at ₹24L in new vs ₹10L in old |
Key numbers for FY 2026-27
| Item | New regime | Old regime |
|---|---|---|
| Standard deduction | ₹75,000 | ₹50,000 |
| Effective tax-free income (salaried) | ₹12,75,000 | ₹5,00,000 (with 87A) |
| Section 87A rebate | Up to ₹60,000 (taxable income ≤ ₹12L) | Up to ₹12,500 (taxable income ≤ ₹5L) |
| Top tax rate | 30% above ₹24L | 30% above ₹10L |
| 80C deductions available? | No | Yes — up to ₹1.5L |
| HRA exemption available? | No | Yes — if paying rent |
| EPF deduction (employee) | 12% of basic (both regimes) | Same |
Common questions
My CTC says ₹12 LPA but my offer letter mentions a bonus. How does that work?
Variable pay or performance bonus is usually included in your CTC. The slider in the calculator lets you set what percentage of your CTC is variable. Variable pay is typically paid quarterly or annually based on performance — not guaranteed monthly. Run the calculator with 0% bonus to see your guaranteed monthly in-hand, and with the stated variable percentage to see the CTC-level number your employer quotes.
What is professional tax and does everyone pay it?
Professional tax is a state-level tax on employment income, deducted by employers at source. Most states charge ₹200/month (₹2,400/year) — Maharashtra, Karnataka, West Bengal, Tamil Nadu, Andhra Pradesh, Telangana, and others levy it. Delhi, Haryana, Rajasthan, and some other states do not. The calculator uses ₹200/month as the default assumption.
Will my gratuity really be lost if I leave before five years?
For permanent employees, yes — you must complete five continuous years of service to be eligible for gratuity. If you leave before five years, you forfeit the gratuity that was accrued in your CTC. This effectively means your real earnings over that period were lower than the CTC suggested. Under the new Labour Codes (in force from November 21, 2025), fixed-term contract employees are eligible for gratuity after just one year — but this applies only to contract employees, not permanent ones.
How accurate is this calculator?
It covers the main deductions — EPF (capped at ₹1,800/month), professional tax, and income tax under both regimes using the correct FY 2026-27 slabs. It does not cover ESIC (only for salaries under ₹21,000/month), home loan interest deduction, NPS employer contribution (80CCD(2), which is a new-regime deduction), LTA, or company-specific salary structuring. For exact numbers, ask your employer's payroll team or use a CA.
Related: What Happens to Your EPF When You Change Jobs? | My Employer Is Not Depositing My PF — What Can I Do? | Gratuity in India 2026 — Calculation and the November 2025 Rule Change
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