CTC Calculator India — Cost to Company to In-Hand Salary 2026 –27
New Regime vs Old Regime · HRA · 80C · 80D · NPS · Surcharge · Monthly Take-Home
When a company offers "₹10 LPA CTC", it's marketing — your actual in-hand will be ₹65,000–₹75,000/month depending on your structure. Variable pay (bonus) is at risk. Employer PF contribution sounds like a benefit but reduces your flexibility. Gratuity accrues but you get it only after 5 years. This CTC-to-in-hand calculator demystifies every component so you can negotiate smarter and plan better.
💼 Salary Details
📋 Old Regime Deductions
▲ HideFill deductions to compare New vs Old regime accurately
Annual Savings
📅 Monthly Salary Breakup
| Component | Monthly (₹) | Annual (₹) | % of CTC |
|---|---|---|---|
| 💼 Gross CTC | ₹1,00,000 | ₹12,00,000 | 100.0% |
| 📊 Income Tax | −₹5,927 | −₹71,126 | 5.9% |
| 🏥 PF (Employee) | −₹1,800 | −₹21,600 | 1.8% |
| 🏙️ Professional Tax | −₹200 | −₹2,400 | 0.2% |
| 💰 Net Take-Home | ₹94,073 | ₹11,28,874 | — |
📐 Income Tax Calculation — New Regime FY 2025–26
📖 Real Life Examples
HRA ₹1.2L, 80C ₹1.5L. Deductions total ~₹3.5L.
New: Std ₹75K only. Old: 80C+80D+NPS = ₹2.25L.
HRA ₹2.4L, 80C ₹1.5L, Home Loan ₹2L, NPS ₹50K.
Surcharge 10% applies. New regime limits surcharge to 25% (old: 37%) above ₹5Cr.
Frequently Asked Questions
What is a good basic salary percentage in CTC?
Lower basic = lower PF, gratuity, HRA (HRA is % of basic). Higher basic = more PF, more HRA exemption, higher gratuity. For PF minimization: keep basic at ₹15,000 (minimum legal wage for PF purposes). For HRA maximization: higher basic is better. For retirement savings: higher basic better (more PF). Negotiate structure based on your priority.
What is variable pay and how is it treated in CTC?
Variable pay (performance bonus) is usually 10–30% of CTC. It's included in CTC but NOT guaranteed. It's paid annually based on performance. Tax is deducted at payout. If you get 100% of target bonus: good year. 0%: company struggled. Never rely on variable pay for EMI commitments. Calculate in-hand based on fixed pay only.
How is gratuity calculated and when is it paid?
Gratuity = Basic × 15 days × years of service ÷ 26. Paid after minimum 5 years with same employer. Exempt up to ₹20L. Example: ₹50,000 basic, 10 years service → gratuity = ₹50,000 × 15 × 10 ÷ 26 = ₹2,88,461 (tax-free up to ₹20L). Included in CTC as accrual = 4.81% of basic salary annually.
What is flexible benefits plan (FBP) in salary?
FBP lets you choose which allowances you want — telephone reimbursement, LTA, meal vouchers, gadgets etc. All are exempt from tax up to limits. Optimizing FBP can save ₹20,000–₹50,000/year in tax. Example: food coupons ₹2,600/month (₹31,200/year, tax-free). LTA twice in 4 years (max 1 month basic). Fuel + car maintenance (₹1,800 + ₹2,400/month).
📌 Key Takeaways — CTC Calculator India 2026–27
- ✅ New Regime is now the default for FY 2025–26. Opt for Old Regime only if deductions > ₹3.75L
- ✅ Zero tax in New Regime if income ≤ ₹7.75L (₹7L income + ₹75K std deduction + 87A rebate)
- ✅ Old Regime wins if HRA + 80C (₹1.5L) + 80D + NPS + Home Loan all fully claimed
- ✅ Standard deduction: ₹75,000 (New) vs ₹50,000 (Old) — Budget 2025 change
- ✅ NPS extra ₹50,000 under 80CCD(1B) reduces tax by ₹15,000 (30% slab)
- ✅ Surcharge: 10% on income ₹50L–₹1Cr · 15% on ₹1Cr–₹2Cr · 25% on ₹2Cr–₹5Cr
- ✅ Professional Tax up to ₹2,500 deductible under both regimes
- ✅ 4% Health & Education Cess applies on total tax (including surcharge)