CTC to monthly in-hand salary.
Monthly in-hand
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Income tax
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Employee PF
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Employer PF (in CTC)
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Your breakdown
Updates live as you type| Step | Value |
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Worked example
Take an annual CTC of Rs 15,00,000 with basic pay set at 40 percent of CTC, so basic is Rs 6,00,000. Two CTC components never reach your bank: employer PF, capped here at about Rs 31,104, and a gratuity provision of about Rs 28,860. Removing both leaves a gross salary of about Rs 14,40,036. From this gross, the new regime applies the Rs 75,000 standard deduction, giving taxable income of about Rs 13,65,036. Tax on that under the new-regime slabs is about Rs 84,755, and adding the 4 percent health and education cess takes it to about Rs 88,146 for the year. Employee PF of about Rs 31,104 and professional tax of Rs 2,400 are also deducted. The annual in-hand is roughly Rs 13,18,386, which is about Rs 1,09,866 a month, or close to 88 percent of CTC reaching you over the year.
How it is calculated
The tool first strips out the CTC items that never hit your account. Basic pay is taken as your chosen percentage of CTC, employer PF is 12 percent of basic, and gratuity is provided at 4.81 percent of basic, which is the annual cost of the 15-by-26 gratuity accrual. Subtracting both from CTC gives your gross salary. It then computes income tax under the new regime: it applies the Rs 75,000 standard deduction, runs the remaining income through the slab rates, applies the Section 87A rebate with marginal relief above Rs 12 lakh, and adds 4 percent cess. Finally it deducts employee PF of 12 percent of basic and professional tax of Rs 2,400, then divides the annual in-hand by 12. The result is an estimate: actual in-hand varies with HRA exemption, the old regime, allowances, and your state professional tax.