When you receive a job offer quoting an annual CTC (Cost to Company) figure, the actual amount that lands in your bank account every month — your "in-hand" or take-home salary — is meaningfully lower, and the gap often surprises first-time job-seekers and even experienced professionals switching employers.
CTC includes components that never actually reach your bank account as cash: the employer's contribution to Provident Fund, gratuity provisioning, and sometimes insurance premiums are all part of CTC but are not part of your monthly payout. From what remains, your own Employee PF contribution, Professional Tax (where applicable, varying by state), and income tax (based on your chosen tax regime and applicable slabs) are further deducted before you receive your salary.
This calculator gives you an approximate monthly in-hand figure based on standard assumptions for these deductions. Because exact salary structures vary significantly between employers — some offer more flexible components, different bonus structures, or additional allowances — treat this as a planning estimate rather than an exact figure, and always refer to your actual offer letter or salary slip for precise numbers.
CTC includes employer PF contribution, gratuity provisioning, and other benefits that don't come to you as monthly cash, plus your own PF contribution, Professional Tax, and income tax are deducted from what remains.
Professional Tax is a state-level tax on salaried income, applicable in states like Maharashtra, Karnataka, West Bengal, and others — some states like Delhi and Haryana do not levy it.
Sometimes, by restructuring your salary components — opting for tax-efficient allowances, adjusting your PF contribution (where flexibility exists), or choosing the New Tax Regime if it results in lower tax for your situation.
Complex tax situation? Talk to a CA →