CTC to Take-Home Pay Calculator India - New Tax Regime 2026
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CTC (Cost to Company) is the total amount a company spends on an employee per year, including basic salary, HRA, PF contributions, bonuses, and other benefits. In-Hand salary (or take-home pay) is what you actually receive in your bank account after deducting employee PF, professional tax, and income tax (TDS) from your gross salary.
Both employer and employee contribute 12% of basic salary to PF. However, this can be capped at ₹15,000 basic (i.e., ₹1,800/month each) or calculated on actual basic salary depending on company policy. The employer's PF contribution is part of CTC, while the employee's contribution is deducted from gross salary.
CTC includes employer PF contribution, gratuity, bonus/variable pay, and other benefits. After deducting employer PF (part of CTC but not paid to you directly), employee PF, professional tax, and income tax, your take-home is typically 60-75% of CTC depending on your salary level and tax slab.
Professional Tax is a state-level tax levied on salaried individuals. The maximum limit is ₹2,500 per year as per the Constitution. Most states charge ₹200/month (₹2,400/year). Some states like Rajasthan and Delhi do not levy professional tax.
Under the new tax regime, options are limited since most deductions are not available. However, you can: (1) Opt for a higher basic salary percentage if your company allows flexible structuring, (2) Negotiate a lower variable/bonus component for a higher fixed pay, (3) Utilize the ₹75,000 standard deduction, and (4) Ensure your PF is calculated on capped basic (₹15,000) if allowed.