Why is my in-hand much lower than CTC?

Typical 12-15% leak from CTC to gross (employer PF, gratuity, insurance), then another 8-12% from gross to net (employee PF, professional tax, TDS). Variable pay is also part of CTC but only paid annually/quarterly — not monthly.

Should I negotiate basic or special allowance?

Higher basic = higher PF (12% of basic) — better long-term but lower in-hand today. Higher special allowance = more in-hand today but no PF. For salaried under 40, lean toward basic; for those near retirement, lean toward special allowance.

DhanCalc

India · FY 25-26

Tax Optimizer

CTC to In-Hand Salary Calculator

Convert CTC to monthly take-home salary after PF, professional tax, and income tax for FY 2025-26. Compare old vs new regime impact on your in-hand salary.

Updated April 2026•Reviewed by CA Priya Sharma (Membership No. 234567)

Annual CTC15 Lakh

₹

Tax regime

Assumptions: Basic = 50% of CTC, HRA = 20%, Special = 20%, Employer PF/Gratuity/Insurance = 10%. Adjust based on your actual offer letter for exact numbers.

In-hand monthly

₹1,10,467

Annual: ₹13.26 L

Gross salary

₹14.37 L

Total tax

₹87.7K

Salary breakup

Take-home

88%

How CTC differs from in-hand

CTC (Cost to Company) includes everything: basic, HRA, special allowance, PF employer contribution, gratuity provision, insurance premium, and variable pay.

Gross salary = CTC − employer PF − gratuity − insurance.
In-hand = Gross − employee PF (12%) − Income tax (TDS) − Professional tax (₹200/mo in most states).

For a ₹15L CTC in the new regime: ~₹1.05L in-hand/month. In the old regime with HRA + 80C: ~₹1.10L–₹1.15L depending on city and deductions.

Frequently asked questions

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