In-Hand Salary Calculator – Calculate Monthly Take-Home from CTC

Understanding Your In-Hand Salary

In-hand salary is the amount credited to your bank account after deductions such as income tax, professional tax, and employee provident fund (PF). Employees with the same CTC may receive different in-hand salaries depending on salary structure and tax regime (old or new).

How In-Hand Salary is Calculated

The calculator estimates your monthly take-home using this formula:

• Annual CTC minus total tax (income tax + cess) minus employee PF contribution
• Divided by 12 months for the monthly in-hand salary

Keep in mind this is an estimate; actual salary may vary based on bonuses, allowances, and company policies.

Examples

• CTC ₹6,00,000 → Approx. ₹48,200 per month in-hand
• CTC ₹10,00,000 → Approx. ₹76,983 per month in-hand
• CTC ₹12,00,000 → Approx. ₹91,050 per month in-hand

Tips to Maximize Take-Home Salary

• Opt for tax-saving investments under Section 80C to reduce taxable income
• Choose allowances wisely, like HRA, LTA, and medical reimbursements
• Understand your company's salary structure – flexible components may increase take-home
• Consider voluntary PF contributions carefully; higher contributions reduce in-hand temporarily but help long-term savings

FAQs

Q: Is salary below ₹7 LPA tax-free?
A: Yes, under the New Tax Regime, salary below ₹7 LPA is effectively tax-free due to Section 87A rebate.

Q: Is PF deducted from in-hand salary?
A: Yes, employee PF contribution is deducted before salary is credited.

Q: Are bonuses included in this calculation?
A: No, this calculator only considers your annual CTC and standard deductions. Bonuses may increase your take-home salary.

Q: Does choosing the old vs new tax regime affect in-hand salary?
A: Yes, the choice can affect tax deductions and thus your monthly take-home.

Q: Can this calculator give exact salary figures?
A: No, it provides an estimate. Actual salary may vary based on allowances, bonuses, and company-specific policies.