# In-Hand Salary Calculator > Free in-hand salary calculator for FY 2026-27. Enter your CTC to see monthly take-home pay after PF, professional tax and income tax, new or old regime. Enter your annual CTC to see your monthly take-home salary after employer and employee PF, gratuity, professional tax and income tax for FY 2026-27. Use the free tool here: https://saraltools.in/salary-calculator/ ## How the in-hand salary is calculated Your **cost to company (CTC)** is everything your employer spends on you in a year. Your **in-hand salary** is what reaches your bank account each month. The calculator works through the gap step by step: 1. **Basic pay** is usually 40% to 50% of CTC. PF and gratuity are calculated on it. 2. **Employer PF and gratuity** are part of CTC but are not paid to you monthly, so they are removed to get **gross salary**. 3. **Employee PF** (12% of basic), **professional tax** and **income tax** are deducted from gross salary. 4. Variable pay or bonus is shown separately because it is usually paid once a year, not monthly. ``` In-hand = CTC − Employer PF − Gratuity − Employee PF − Professional tax − Income tax − Variable pay ``` ## Tax rules used (FY 2026-27) The new tax regime is the default. Its slabs are nil up to ₹4 lakh, then 5%, 10%, 15%, 20% and 25% for each ₹4 lakh band, and 30% above ₹24 lakh. Salaried people get a ₹75,000 standard deduction, and the Section 87A rebate makes tax zero when taxable income is ₹12 lakh or less. Just above ₹12 lakh, marginal relief limits the tax to the amount by which income exceeds ₹12 lakh. A 4% health and education cess is added to the tax. In the old regime the standard deduction is ₹50,000, and deductions such as 80C (including your own PF, up to ₹1.5 lakh), 80D and HRA reduce taxable income. Use our [income tax calculator](https://saraltools.in/income-tax-calculator/) to compare both regimes in detail, and the [HRA calculator](https://saraltools.in/hra-calculator/) to work out your HRA exemption. ## Tips to increase take-home pay - Ask whether your employer can cap PF at ₹15,000 basic. Lower PF means higher monthly pay, but less retirement savings. - Employer contribution to NPS (up to 14% of basic in the new regime) is tax-free and can lower your tax. - If your deductions (HRA, 80C, home loan interest) are large, compare the old regime, which can still win for some people. ## Frequently asked questions ### How much is the in-hand salary for a CTC of 12 lakh? With basic at 50% of CTC, PF on full basic, gratuity inside CTC and ₹2,400 professional tax, a ₹12 lakh CTC gives about ₹85,400 a month in the new regime, with zero income tax. Your exact figure depends on your salary structure, so enter your own numbers above. ### Is income up to ₹12 lakh tax-free in the new regime? Yes. In FY 2026-27 the Section 87A rebate makes tax nil when taxable income is up to ₹12 lakh. For salaried people the ₹75,000 standard deduction is subtracted first, so a gross salary up to ₹12.75 lakh can pay zero tax. ### Why is my in-hand salary much lower than CTC divided by 12? CTC includes money you do not get every month: the employer's PF contribution, gratuity, and sometimes insurance and performance bonus. Your own PF, professional tax and TDS are also deducted from gross salary. ### Is PF calculated on full basic or on ₹15,000? By law PF is mandatory on basic pay up to ₹15,000 a month (₹1,800 contribution). Many companies still deduct 12% of the full basic. Check your offer letter and choose the matching option. ### Does professional tax reduce my income tax? Only in the old regime, where professional tax is deductible. The new regime does not allow it. Professional tax is a state tax of up to ₹2,500 a year and is not charged in some states. ## Related tools - [Income Tax Calculator FY 2026-27](https://saraltools.in/income-tax-calculator/): Compare new and old regime tax side by side and see which saves more. - [HRA Exemption Calculator](https://saraltools.in/hra-calculator/): Work out tax-free HRA with the new 8-metro-city 50% rule. - [EMI Calculator](https://saraltools.in/emi-calculator/): Monthly EMI, total interest and year-wise repayment schedule. - [PPF Calculator](https://saraltools.in/ppf-calculator/): PPF maturity value at 7.1%, with 5-year extensions. - [FD Calculator](https://saraltools.in/fd-calculator/): Fixed deposit maturity amount with quarterly compounding. - [Gratuity Calculator](https://saraltools.in/gratuity-calculator/): Gratuity amount from last salary and years of service. Last updated: 2026-11-02 --- SaralTools (https://saraltools.in/): Free Indian calculators, document makers and photo tools. Contact: help@saraltools.in. Results are estimates, not tax, legal or financial advice.