CTC to in-hand salary calculator
What an offer's CTC turns into each month, under the new tax regime for FY 2026-27, with every deduction shown.
6 LPA
Usually 40 to 50%. Your offer letter's salary breakup says.
Professional tax: 200 a month once monthly pay reaches 25,000.
Check your payslip; states set their own slabs.
In-hand each month
₹44,038
₹5,28,456 a year, 88% of the CTC. No income tax at this salary.
Line by line, a year
| CTC | ₹6,00,000 |
| Basic pay | ₹2,40,000 |
| Less the employer's PF | −₹28,800 |
| Less gratuity | −₹11,544 |
| Gross salary | ₹5,59,656 |
| Less your PF | −₹28,800 |
| Less professional tax | −₹2,400 |
| Less income tax, on ₹4,84,656 taxable | ₹0 |
| In-hand | ₹5,28,456 |
An estimate for the new tax regime, FY 2026-27. It leaves out variable pay, bonuses paid later, employer NPS, and anything your employer deducts on its own, such as meal cards or insurance. Your first payslip is the final word.
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How it works
- Gross salary is CTC minus what the employer pays on your behalf and inside the CTC: its own PF (12% of basic, or of the ₹15,000 ceiling) and gratuity (4.81% of basic).
- Taxable income is gross minus the ₹75,000 standard deduction. Tax follows the new regime slabs; up to 12 lakh taxable pays nothing under section 87A, with marginal relief just above; 4% cess on top.
- In-hand is gross minus your own PF, professional tax and income tax. Professional tax is not deductible in the new regime.
This is arithmetic, not legal or financial advice. Your contract or plan document decides; where it differs from the rule above, it wins.
Questions
Why is in-hand salary so much lower than CTC?
CTC counts everything the company spends on you, including its own PF contribution and gratuity, which never reach your account each month. From what is left, your own PF, professional tax and income tax are taken before you are paid.
How much of a 6 LPA CTC is in-hand?
With basic at 40% of CTC, PF on the full basic, gratuity inside the CTC and professional tax of 2,400 a year, about ₹44,000 a month, and no income tax, because taxable income stays under 12 lakh. Change the inputs to match your offer letter.
Is salary up to 12.75 lakh tax-free under the new regime?
Taxable income up to 12 lakh pays no tax because of the section 87A rebate, and a salaried person first deducts the standard deduction of ₹75,000. So a gross salary up to 12.75 lakh pays no income tax. Just above that, marginal relief keeps the tax from exceeding the income over the limit.
Does this use the old or the new tax regime?
The new regime, which is the default. The old regime depends on your own deductions (rent, 80C investments, home loan), so it needs more than an offer letter to calculate.
What is the PF wage ceiling?
EPF is compulsory on basic pay up to ₹15,000 a month, which makes 12% of it ₹1,800 a month. Many employers deduct 12% of your whole basic instead. Your offer letter or first payslip says which.
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