Quick answer
What is the in-hand salary for a ₹10 lakh CTC?
A ₹10 lakh CTC with 40% basic, employer PF on the ₹15,000 ceiling and gratuity included gives a gross salary of about ₹9.59 lakh. After ₹21,600 employee PF and ₹2,500 professional tax, and zero income tax under the new regime, the in-hand pay is about ₹77,900 a month.
- In-hand = CTC − employer PF − gratuity − employee PF − professional tax − income tax
- PF: 12% of basic, often capped at ₹15,000 basic (₹1,800 a month)
- Gratuity: 4.81% of basic when it’s included in CTC
How does a CTC break down into in-hand salary?
- Basic pay: usually 40–50% of CTC; PF and gratuity are based on it
- HRA: often 40–50% of basic; tax-exempt in the old regime if you pay rent
- Special allowance: the balance of gross salary, fully taxable
- Employer PF: 12% of basic, part of CTC but paid into your PF account
- Gratuity: 4.81% of basic, paid after 5 years of service
How is in-hand salary calculated from CTC?
Start with your CTC and take out the parts you never receive each month. What is left is gross salary. Then take out your own deductions to reach take-home pay.
In-hand salary = gross salary − employee PF − professional tax − income tax
Take a ₹10 lakh CTC with 40% basic (₹4,00,000), PF on the ₹15,000 ceiling, gratuity in CTC, Karnataka professional tax and the new regime:
- Employer PF ₹21,600 and gratuity ₹19,240 leave a gross salary of ₹9,59,160
- Employee PF ₹21,600 and professional tax ₹2,500 are deducted; income tax is nil
- Take-home salary is ₹9,35,060 a year, or about ₹77,922 a month
How does PF deduction from salary change your take-home pay?
PF touches your salary twice. The employer’s 12% sits inside your CTC, and your own 12% is deducted from gross salary. If your employer works out PF on full basic instead of the ₹15,000 ceiling, both shares rise and monthly take-home falls. For the same ₹10 lakh CTC:
| PF worked out on | New regime | Old regime |
|---|---|---|
| Basic up to ₹15,000 | ₹77,922 | ₹74,497 |
| Full basic | ₹73,522 | ₹71,012 |
The old regime figures assume ₹20,000 rent a month in a 50% HRA city and ₹50,000 of other 80C savings. The extra PF isn’t lost. It goes into your EPF account and earns interest until you withdraw it.
Frequently asked questions
How do I calculate in-hand salary from CTC?
Subtract employer PF and gratuity from your CTC to get gross salary. Then subtract employee PF, professional tax and income tax. Divide the result by 12 for your monthly in-hand salary.
What is the in-hand salary for 10 LPA?
With 40% basic, PF on the ₹15,000 ceiling, gratuity in CTC and the new tax regime, a ₹10 lakh CTC gives about ₹77,900 a month in hand. It pays no income tax because taxable income stays under ₹12 lakh.
Why is my in-hand salary so much lower than CTC?
CTC includes the employer’s PF contribution and gratuity, which you don’t receive monthly. Employee PF, professional tax and income tax are then deducted from your gross salary.
Is PF calculated on full basic or ₹15,000?
By law, PF is mandatory on basic pay up to the wage ceiling (₹15,000 a month; the Cabinet approved raising it to ₹25,000 in September 2026). Many employers cap it there, while some deduct 12% of the full basic.
How much professional tax is deducted?
It depends on your state. Maharashtra, Karnataka and Tamil Nadu charge up to ₹2,500 a year; West Bengal, Telangana and Gujarat up to ₹2,400. Some states don’t levy it at all.
What is the in-hand salary for 20 LPA?
With 40% basic, PF on the ₹15,000 ceiling, gratuity in CTC, Karnataka professional tax and the new regime, a ₹20 lakh CTC gives about ₹1,44,660 a month in hand. Income tax is about ₹1,79,900 for the year.
What is the difference between gross salary and CTC?
Gross salary is CTC minus the employer’s PF contribution and gratuity. It is the total of basic, HRA and allowances before your own PF, professional tax and income tax are deducted.