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🇮🇳 India · CTC to In-Hand · FY 2026-27

Take Home Salary Calculator India 2026-27: CTC to In-Hand Salary

✍️ Written by Akshay Potnis, Founder of CalVerse
May 11, 20269 min readBy CalVerse
A ₹10 lakh CTC offer sounds great. But your actual monthly in-hand salary is around ₹67,000–₹72,000 — not ₹83,333. The gap is income tax, PF deductions, and professional tax eating into your salary before it reaches your account. This article shows you the exact breakdown for ₹10L, ₹15L, and ₹20L CTC — and which tax regime gives you more money every month.

The CTC vs In-Hand Reality Check

CTC stands for Cost to Company — it's everything your employer spends on you, including benefits you never directly receive. In-hand salary is what actually gets credited to your bank account after all deductions. The difference between the two surprises almost every fresher joining their first job.

⚠️ What's Inside Your CTC That You Never See

Employer PF contribution (12% of basic) is part of your CTC but goes directly to your PF account, not your salary. Gratuity provision (4.81% of basic) is part of CTC but only paid after 5 years of service. Both of these make your CTC look larger than your actual annual cash earnings.

Exact In-Hand Salary for Common CTC Levels — FY 2026-27

Assuming standard salary structure (Basic = 40% of CTC, HRA = 50% of Basic, rest as Special Allowance), Old Regime, ₹1.5L 80C investment, ₹15K rent/month, Mumbai:

Annual CTCBasic/monthIncome Tax/yrPF/monthMonthly In-Hand% of CTC
₹6 Lakhs₹20,000₹0₹2,400₹44,70089.4%
₹10 Lakhs₹33,333₹28,600₹4,000₹69,70083.6%
₹15 Lakhs₹50,000₹1,12,320₹6,000₹98,80079.0%
₹20 Lakhs₹66,667₹2,34,000₹8,000₹1,26,50075.9%
₹30 Lakhs₹1,00,000₹5,46,000₹12,000₹1,74,00069.6%

Estimates based on standard salary structure. Actual figures vary by company and exact salary breakup.

₹10 Lakh CTC — Full Monthly Breakdown

₹10L CTC — Mumbai — Old Regime — FY 2026-27
Basic Salary₹33,333/mo
HRA (50% of Basic)₹16,667/mo
Special Allowance₹33,333/mo
Gross Monthly Salary₹83,333/mo
Less: Income Tax (monthly)-₹2,383/mo
Less: Employee PF (12% basic)-₹4,000/mo
Less: Professional Tax-₹200/mo
Monthly In-Hand₹76,750/mo

Calculate your exact in-hand salary

Enter your CTC components and see exact monthly in-hand — Old vs New regime compared.

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New Regime vs Old Regime — Which Gives More In-Hand?

This is the most important decision for your salary every financial year. New Regime has lower tax rates but removes HRA exemption, 80C, 80D, and most deductions. Old Regime keeps higher rates but lets you claim everything.

CTCOld Regime TaxNew Regime TaxBetter RegimeExtra/year
₹7 Lakhs₹0₹0 (87A rebate)Same
₹10 Lakhs₹27,100₹0 (87A rebate)New Regime ✓₹27,100
₹12 Lakhs₹67,600₹0 (87A rebate)New Regime ✓₹67,600
₹15 Lakhs₹1,33,900₹81,800New Regime ✓₹52,100
₹20 Lakhs₹2,85,600₹1,64,400New Regime ✓₹1,21,200
₹25 Lakhs₹4,37,400₹2,74,800New Regime ✓₹1,62,600

Since the FY2026-27 changes extended the Section 87A full rebate up to ₹12 lakh taxable income under the new regime, New Regime now wins for most salaried employees across a much wider CTC range than before — even with full 80C, 80D and HRA deductions claimed under the old regime. Old Regime only pulls ahead once deductions are unusually large — a sizeable home loan interest claim, high rent in a metro, and fully maxed 80C/80D together — or at very high income levels where old regime's HRA/deduction stack outweighs new regime's lower rates. Run your specific numbers through the calculator rather than relying on a rule of thumb.

💡 Quick Decision Rule

Old Regime is only worth the extra paperwork if your total deductions (HRA exemption + 80C ₹1.5L + 80D ₹25K + home loan interest, if any) are large enough to push your old-regime taxable income meaningfully below the amount that would be tax-free under New Regime's ₹12 lakh rebate threshold. For most people without a home loan, New Regime is now the simpler and often cheaper default — verify with the calculator before assuming otherwise.

How to Increase Your Monthly In-Hand Salary

Most people accept their salary structure as-is. But there are legitimate ways to increase monthly in-hand without getting a raise:

Frequently Asked Questions

Why is my in-hand salary much less than expected?+
The most common reason is employer PF and gratuity being included in CTC but not paid as cash salary. On a ₹10L CTC, employer PF alone is ₹48,000/year. Additionally, income tax and employee PF together eat 10–20% of gross salary at mid-level packages. Always ask HR for the exact CTC breakup before joining.
What is the standard deduction in FY 2026-27?+
₹75,000 standard deduction is available under both Old and New Regime from FY 2024-25 (increased from ₹50,000). This is a flat deduction from gross salary — no proof or declaration needed. It automatically reduces your taxable income by ₹75,000.
Does PF reduce my in-hand salary?+
Yes — employee PF (12% of basic) is deducted from your gross salary. So on a ₹40,000 basic salary, ₹4,800 goes to PF every month — that's money you don't see until you withdraw from your PF account. Employer also contributes 12% but that doesn't reduce your salary — it's an additional cost to the company above your salary.
Can I opt out of PF to increase in-hand salary?+
PF is mandatory for employees earning up to ₹15,000/month basic salary. For those above ₹15,000 basic, opting out is possible in some companies though rare. Most employees prefer keeping PF as it's a forced saving at 8.15% tax-free interest (EPF rate) — among the best guaranteed returns available.