The Real Problem This Solves
Your offer letter screams "₹12 LPA," but your bank account sees far less. The gap between CTC and in-hand shocks every first-time earner.
CTC includes employer contributions you never see. This calculator strips them out to show your real take-home.
How CTC Becomes Take-Home Pay
From your CTC, remove employer PF and gratuity provisions (which you never receive), then deduct your own PF, professional tax, and income tax. What's left is your in-hand.
Example: Arjun has a ₹12 lakh CTC with 40% basic. After removing employer PF and gratuity provision, then deducting his own PF and professional tax, his pre-tax in-hand is roughly ₹91,000/month. Income tax then reduces this further.
| Component | Annual | Notes |
|---|---|---|
| Your CTC | ₹12,00,000 | Headline figure |
| Less: employer PF + gratuity | ~₹78,000 | You never receive this |
| Less: your PF + prof. tax | ~₹24,000 | Deducted from salary |
| Pre-tax in-hand | ~₹10.9 lakh | Before income tax |
Frequently Asked Questions
Why is my in-hand so much lower than my CTC?
CTC bundles in employer contributions (employer PF, gratuity provision) and your deductions (PF, professional tax, income tax). Only what remains after all of these reaches your account.
Is this figure after income tax?
No, this shows pre-tax in-hand. Income tax depends on your regime and deductions, so calculate it separately for the final net figure.
Related Calculators
Saw your real take-home?
The last piece is income tax. Find out exactly what you owe and finalise your net salary with our Income Tax Calculator.
Open Income Tax Calculator →