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CTC to In-Hand Calculator

Annual CTC + bonus split → component breakdown (basic, HRA, special allowance), statutory deductions and monthly take-home. New regime FY 2025-26.

₹
%
Component breakdown (annual)
Basic (50% of fixed)
₹ 6,75,000
HRA (50% of basic)
₹ 3,37,500
Special allowance
₹ 3,15,900
Variable / bonus
₹ 1,50,000
Employer PF
₹ 21,600
Gratuity provision
₹ 32,467
Result · new regime
Gross salary (annual)
₹ 14,78,400
Employee PF (12% of basic, capped)
− ₹ 21,600
Professional tax (annual)
− ₹ 2,400
Income tax (incl. 4% cess)
− ₹ 94,286
In-hand annual
₹ 13,60,114
In-hand monthly
₹ 1,13,343

Indicative breakdown using a typical structure. Actual structures vary by employer; PT rate shown is Karnataka.

A worked example, end to end

Scenario

Software engineer in Bengaluru. CTC ₹24,00,000 per year. Bonus ₹3,00,000. New regime.

Computation

  1. Fixed CTC. ₹24L − ₹3L = ₹21L annually.
  2. Basic (45%). ₹9,45,000. Monthly: ₹78,750.
  3. HRA (40% of basic). ₹3,78,000. Monthly: ₹31,500.
  4. Special allowance. ₹6,67,800. Monthly: ₹55,650.
  5. Employer PF (capped at ₹15,000 basic). ₹1,800 × 12 = ₹21,600. Inside CTC.
  6. Gratuity provision. 4.81% × ₹9,45,000 = ₹45,460. Inside CTC.
  7. Employee PF. ₹1,800/month.
  8. PT (Karnataka). ₹200/month.
  9. Tax (new regime, on ₹21L gross fixed). ≈ ₹2,50,000/year, ₹20,833/month.
  10. Monthly in-hand. ₹1,65,900 − ₹1,800 − ₹200 − ₹20,833 ≈ ₹1,43,000.
  11. Annual in-hand (excluding bonus). ≈ ₹17.2L. Bonus paid separately after TDS.

Free download

Offer letter CTC breakdown template (Excel).

Pre-built CTC decomposer: paste the annual CTC and bonus, see basic, HRA, special, retirals, statutory deductions and the monthly in-hand. Side-by-side new and old regime computation. Useful for evaluating multiple offers.

Download the template XLSX, ~55 KB. Free, no signup.

How CTC translates to in-hand

CTC (Cost to Company) is the total annual outlay your employer commits to. It is split into a fixed component (paid every month) and a variable / bonus component (paid quarterly, half-yearly or annually based on performance).

Typical structure

  • Basic salary, usually 40-50% of CTC (excluding bonus). Forms the base for PF, gratuity, HRA exemption.
  • HRA, typically 50% of basic (40% in non-metro). Tax-exempt under Section 10(13A) on the lowest of: HRA received, rent paid minus 10% of basic, or 50%/40% of basic.
  • Special allowance, fully taxable, fills the gap to the fixed amount.
  • Variable / bonus, paid based on performance.
  • Employer PF, 12% of basic (capped at ₹1,800/month if basic > ₹15,000). Part of CTC, not paid to you.
  • Gratuity provision, 4.81% of basic (1/26 × 15 × annual basic / 12). Part of CTC, paid only on exit after 5 years.

Monthly deductions from gross

  • Employee PF, 12% of basic (capped same as above).
  • Professional Tax, varies by state. ₹200/month for most months in Karnataka, Maharashtra, Tamil Nadu and several others (₹2,400/year here).
  • Income Tax (TDS), per slabs, computed on annual taxable income, distributed monthly.

Salary FAQ

Common questions.

Why is my in-hand much lower than my CTC?

CTC includes the employer PF contribution, gratuity provision and any group medical insurance, all of which the company pays on your behalf but you do not see in your bank account. Add monthly TDS (income tax), employee PF and PT, and the in-hand can be 30-40% lower than the CTC. The gap is normal; it just looks bigger when CTC is presented as one big number.

How is HRA exemption calculated?

Section 10(13A) exempts the lowest of: (a) actual HRA received, (b) 50% of basic for metros / 40% non-metros, (c) actual rent paid minus 10% of basic. To claim, you need rent receipts (and PAN of landlord if rent > ₹1L/year). Under the new regime, HRA exemption is not allowed.

What about the variable / bonus component?

Bonus is fully taxable when paid. Tax is deducted at the time of payout. Many employers pre-deduct estimated tax monthly even before bonus is paid, then true-up at year-end based on actual performance ratings.

What is the difference between gross and net?

Gross = basic + HRA + special + bonus + other allowances paid to you. Net (in-hand) = gross minus employee PF, PT and TDS. Employer PF and gratuity are part of CTC but not part of gross.

Why does PF cap at ₹1,800/month?

EPF Act caps mandatory PF at 12% of basic up to ₹15,000/month basic (₹1,800/month, ₹21,600/year). Many employers continue to deduct 12% of full basic voluntarily; some cap at the statutory limit. The calculator uses the cap; check your offer letter for which approach your employer follows.

Does this work for senior management with high-CTC structures?

The structure is broadly correct but specific items (RSU/ESOP perquisites, LTA exemption, NPS contribution, leased car, voluntary PF, retirals, deferred bonus) need manual modelling. The calculator is an indicative reference for typical structures; for senior packages, work with HR and your tax advisor.

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