Take Home Salary Calculator

Find out exactly how much hits your bank account. We break down your CTC into earnings, deductions, PF, and taxes for FY 2026-27.

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FY 2026-27 Salary Benchmarks

CTC to In-Hand Salary Benchmark Table

Standard salary breakdowns from ₹3 LPA to ₹50 LPA under the New Tax Regime (50% Basic Salary):

Annual CTC	Monthly Gross	Monthly Tax (New)	Monthly PF	Est. Monthly In-Hand	Detailed Breakdown
₹3 LPA	₹23,500	₹0 (Rebate)	-₹1,500	₹21,800	View ₹3 LPA
₹6 LPA	₹47,000	₹0 (Rebate)	-₹3,000	₹43,800	View ₹6 LPA
₹8 LPA	₹62,667	₹0 (Rebate)	-₹4,000	₹58,467	View ₹8 LPA
₹10 LPA	₹78,333	₹0 (Rebate)	-₹5,000	₹73,133	View ₹10 LPA
₹12 LPA	₹94,000	₹0 (Rebate)	-₹6,000	₹87,800	View ₹12 LPA
₹15 LPA	₹1,17,500	-₹6,955	-₹7,500	₹1,02,845	View ₹15 LPA
₹20 LPA	₹1,56,667	-₹13,953	-₹10,000	₹1,32,513	View ₹20 LPA
₹25 LPA	₹1,95,833	-₹23,292	-₹12,500	₹1,59,842	View ₹25 LPA
₹30 LPA	₹2,35,000	-₹34,970	-₹15,000	₹1,84,830	View ₹30 LPA
₹50 LPA	₹3,91,667	-₹83,850	-₹25,000	₹2,82,617	View ₹50 LPA

Verified for FY 2026-27 (AY 2027-28)Rigorous Indian Finance Standards

Formulas, statutory slab logic, and edge-case exceptions authored and reviewed by Ganamurthy N N (M.S. Software Engineering, BITS Pilani | CFP® Certification Candidate — 3/4 Modules Cleared) • View Editorial Methodology →

Statutory Ground Truth

Payment of Gratuity Act, 1972Employees Provident Funds Act, 1952Income Tax Act, 1961 (Sec 16 & 115BAC)

Mathematical Blueprint

CTC to Monthly In-Hand Salary Breakdown Formula

Payroll Engineering Formula

Monthly net take-home salary is computed by isolating non-cash CTC components (Employer PF, Gratuity) and subtracting statutory payroll deductions (Employee PF, Professional Tax, Income Tax TDS).

Core Algorithmic Formulation

Gross Cash Salary = CTC - Employer PF (12% of Basic) - Gratuity (4.81% of Basic) - Insurance/Perks
Monthly Gross = Gross Cash Salary ÷ 12

Monthly Deductions = Employee EPF (12% of Basic ÷ 12) + Professional Tax (₹200) + Monthly TDS

Monthly In-Hand Take-Home = Monthly Gross - Monthly Deductions

CTC

Cost to Company

Total financial outlay by employer including fixed salary, PF, gratuity, and insurance.

Basic

Basic Salary

Typically 40% to 50% of CTC. Forms the statutory benchmark for PF and Gratuity.

EPF

Employees Provident Fund

12% of Basic contributed by employee and matched by 12% from employer.

Gratuity

Statutory Gratuity

Calculated as (15 × Basic ÷ 26) per year worked, accrued monthly as ~4.81% of Basic.

CTC to In-Hand Walkthrough: ₹20 Lakhs Annual CTC

Scenario: Software engineer in Bengaluru with ₹20,00,000 CTC, 50% Basic pay (₹10,00,000), opting for the New Tax Regime (FY 2026-27).

Step 1:Annual CTCFixed annual compensation package

₹20,00,000

Step 2:Less: Employer PF (12% of ₹10L Basic)Diverted to EPFO account (non-cash)

- ₹1,20,000

Step 3:Less: Gratuity Accrual (4.81% of Basic)Statutory gratuity fund reserve

- ₹48,080

Step 4:Gross Cash Salary (Annual)Monthly Gross = ₹1,52,660

₹18,31,920

Step 5:Annual Income Tax TDS (New Regime)Taxable ₹17,56,920 after ₹75k std deduction

- ₹2,13,200

Step 6:Annual Employee EPF (12% of Basic)Employee contribution

- ₹1,20,000

Step 7:Annual Professional Tax (PT)₹200 per month statutory state tax

- ₹2,400

Calculated OutcomeNet Monthly In-Hand Salary

Annual Take-Home is ₹14,96,320 (~74.8% of CTC).

₹1,24,693 / month

Comparative Benchmark

The Deduction Breakeven Matrix: Old vs New Regime

Total Chapter VI-A & HRA deductions required for Old Regime to beat New Regime in FY 2026-27

Annual CTC	New Regime Tax (₹75k Std Ded)	Old Regime Tax (₹50k Std Ded)	Deductions Needed to Beat New Regime
₹15 Lakhs	₹1,09,200	₹2,67,800	₹4,25,000 (Needs 80C + 80D + HRA + Sec 24b)
₹20 Lakhs	₹2,13,200	₹4,23,800	₹4,75,000 in total eligible tax exemptions
₹25 Lakhs	₹3,69,200	₹5,79,800	₹4,85,000 in total eligible tax exemptions
₹30 Lakhs	₹5,25,200	₹7,35,800	₹5,25,000 in total eligible tax exemptions
₹50 Lakhs	₹11,49,200	₹14,11,800	₹5,85,000 in total eligible tax exemptions

* Unless you pay substantial metro rent (HRA) and carry an active home loan interest deduction (Section 24b), the New Regime is mathematically superior for 90%+ of salaried employees.

Practical Nuances

What Most Taxpayers & Investors Miss

Compounding Benefit

Opt for Higher Basic If You Prioritize Retirement Wealth

A 50% Basic salary maximizes both your employee and employer EPF contributions, compounding tax-free interest at 8.25% sovereign rates. It also boosts your gratuity accumulation upon job changes.

EPF Interest Tax

VPF (Voluntary Provident Fund) Above ₹2.5 Lakh is Taxable

Interest earned on annual EPF + VPF employee contributions exceeding ₹2,50,000 in a year is subject to income tax at your marginal slab rate under Section 10(11) & (12).

Old Regime Perks

Food Coupons & Broadband Allowances in Old Regime

Salaried employees using the Old Regime can claim up to ₹26,400 annually for meal coupons and official broadband reimbursements tax-free, lowering monthly TDS.

Zero-Fluff Clarifications

Frequently Asked Questions & Edge Cases

Why is my monthly in-hand salary lower than CTC ÷ 12?

CTC includes employer obligations and deferred benefits that are never disbursed in your bank account: 1. Employer EPF (12% of Basic) and EPS pension fund. 2. Gratuity provision (~4.81% of Basic), retained by the company until you complete 5 continuous years. 3. Performance bonuses or variable payouts distributed annually. 4. Compulsory payroll deductions: Employee EPF (12%), Professional Tax (~₹200/month), and Income Tax TDS.

How much total deduction do I need to make the Old Tax Regime better than the New Regime?

For FY 2026-27, the breakeven deduction threshold is exceptionally high due to the New Regime's ₹75,000 standard deduction and lower slab rates: • At ₹15L CTC: You need ~₹4.25 Lakhs in deductions (80C + 80D + HRA). • At ₹20L CTC: You need ~₹4.75 Lakhs in deductions. • At ₹30L CTC: You need ~₹5.25 Lakhs in deductions. Without substantial HRA and Home Loan Interest (Section 24b), the New Regime will save you significantly more money.

Is Employer EPF contribution included in the ₹1.5 Lakh Section 80C limit?

No. Only your employee 12% deduction counts towards Section 80C. The matching 12% employer contribution is tax-exempt under Section 10(25) up to 12% of Basic, subject to a combined cap of ₹7,50,000 per financial year across Employer PF, NPS, and Superannuation.

Can I claim Employer NPS under Section 80CCD(2) in the New Tax Regime?

Yes! Employer contributions to your NPS account under Section 80CCD(2) are deductible up to 14% of Basic + DA under both the New and Old Tax Regimes. This is one of the highest-value tax shelters available to salaried professionals in India.

What happens to my Gratuity deduction if I leave the company before completing 5 years?

Under Section 4(1) of the Payment of Gratuity Act, 1972, gratuity becomes payable only after completing 5 continuous years of service with the same employer. If you resign before 5 years, the accrued gratuity allocated in your CTC structure is typically forfeited and retained by the employer.

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