Why ₹10 lakh CTC isn’t ₹83,333 a month
Priya’s offer letter says ₹10 lakh CTC. Divided by 12 that’s ₹83,333, yet her salary credit will be about ₹77,133. CTC is what the company spends on you, and part of it never reaches your account.
In-hand = CTC − employer’s PF − gratuity − your PF − professional tax − income tax
The calculator takes basic pay + DA as half the CTC, PF on pay up to ₹25,000, ₹200 professional tax and the new regime for FY 2026-27. Month by month:
| Per month | ₹10 lakh CTC | ₹20 lakh CTC |
|---|---|---|
| CTC | ₹83,333 | ₹1,66,667 |
| Basic pay + DA | ₹41,667 | ₹83,333 |
| Less: employer’s PF | ₹3,000 | ₹3,000 |
| Gross salary | ₹80,333 | ₹1,63,667 |
| Less: your PF | ₹3,000 | ₹3,000 |
| Less: professional tax | ₹200 | ₹200 |
| Less: income tax (TDS) | Nil | ₹15,409 |
| In-hand salary | ₹77,133 | ₹1,45,058 |
At ₹10 lakh, taxable income after the ₹75,000 standard deduction is ₹8,89,000. That’s under ₹12 lakh, so the rebate wipes out the tax. At ₹20 lakh it is ₹18,89,000, and the tax comes to ₹1,84,910 a year.
Capped PF puts more in hand
PF is 12% of basic. Some employers take it on the full basic, others only on pay up to the ₹25,000 ceiling. On a ₹20 lakh CTC, full-basic PF is ₹10,000 a month from you and ₹10,000 from the employer, against ₹3,000 each when capped. Both come out of the CTC, so in-hand falls to ₹1,32,513, about ₹12,544 less. The money isn’t lost, it builds up in PF. The EPF calculator shows what it grows to.
New regime or old
Tax follows the same slabs as our income tax calculator. On ₹20 lakh with no deductions, the old regime takes ₹32,516 a month in TDS against ₹15,409. Even with the full ₹1.5 lakh under 80C and ₹3 lakh of HRA exemption and other deductions, it leaves ₹1,38,715 a month, still below the new regime.
Professional tax, bonus and the 50% basic rule
Most states that charge professional tax take ₹200 a month. Delhi and Uttar Pradesh don’t charge it, so set it to 0 there. Only the old regime lets you deduct it.
Leave bonus and variable pay out, since they aren’t fixed or monthly. Under the labour codes, basic pay + DA is usually at least half the pay, so the calculator starts at 50%. Your offer letter has the exact split.
Frequently asked questions
How is in-hand salary calculated from CTC?
Take out the employer’s PF, and gratuity if your CTC includes it, to get the gross salary. Then subtract your own PF, professional tax and income tax (TDS). What’s left, divided by 12, is your in-hand salary for the month.
What is the in-hand salary for ₹10 lakh CTC?
About ₹77,133 a month in the new regime, with basic at half the CTC, PF on pay up to ₹25,000 and ₹200 professional tax. Taxable income is ₹8,89,000, so the rebate wipes out the tax. With PF on the full basic it drops to ₹73,133.
Why does PF on full basic reduce my in-hand salary?
On a ₹10 lakh CTC, 12% of the ₹41,667 basic is ₹5,000, against ₹3,000 when PF is capped at the ₹25,000 wage ceiling. The employer’s share also comes out of the CTC, so you get ₹4,000 a month less in hand. That money goes into your PF instead.
Which tax regime gives more in-hand salary?
For most salaried people, the new regime. On a ₹20 lakh CTC it leaves ₹1,45,058 a month. The old regime, even with the full ₹1.5 lakh under 80C and ₹3 lakh of HRA exemption and other deductions, leaves ₹1,38,715. Put in your own deductions to compare.
Is bonus included in the in-hand salary?
No. Bonus and variable pay change from year to year and aren’t paid every month, so the calculator leaves them out, along with reimbursements and the employer’s NPS. Enter your CTC without them and treat any bonus as extra when it comes.
Calculator maintained by Manoj. Last reviewed: 19-10-2026. Rates and rules are checked against official sources. Tell us if something has changed. Contact
