What is the standard deduction in salary for FY 2024-25 and FY 2025-26?

The Union Budget enhanced the standard deduction under the New Tax Regime to ₹75,000 for salaried employees (up from ₹50,000).

Is PF deduction mandatory for all employees in India?

EPF is mandatory for employees in registered establishments with Basic Pay up to ₹15,000/month. For higher basic pay, companies may allow capping at ₹1,800 or deduction on actual basic.

Career & Salary

CTC to In-Hand Salary Calculator

Convert annual CTC to estimated monthly take-home salary in India with Basic, HRA, PF, PT, Gratuity, and TDS tax deductions.

Annual CTC Package (Cost to Company in ₹)

₹

Quick CTCs:

Estimated Monthly In-Hand Salary

₹58,785

Estimated Annual Take-Home: ₹7,05,415

Gross Monthly:₹62,185

Employee PF (12% Basic):-₹3,200

Professional Tax:-₹200

Estimated TDS (Income Tax):-₹0

Total Monthly Deductions:₹3,400

Annual & Monthly CTC Breakdown

Basic Salary₹26,667/mo

HRA₹13,333/mo

Special Allowance₹22,185/mo

Employer PF / Gratuity₹4,482/mo

Indian CTC to In-Hand Take-Home Salary Breakdown

Simulates typical corporate compensation structures in India, converting annual Cost to Company (CTC) into realistic monthly in-hand take-home salary after statutory deductions.

Monthly In-Hand = (Gross Salary - Employee PF - Professional Tax - Estimated Monthly TDS) / 12

Calculation Steps

1Calculate Basic Pay (typically 40% to 50% of CTC).
2Calculate HRA (House Rent Allowance, typically 40% to 50% of Basic Pay).
3Deduct Employee PF (12% of Basic, capped at ₹1,800/mo or uncapped based on company policy).
4Deduct statutory Professional Tax (PT ~₹200/month in most states).
5Deduct Employer PF and Gratuity (~4.81% of Basic) which form part of CTC but are not paid out monthly.
6Estimate TDS (Income Tax) under the selected tax regime (New vs Old).

Practical Example

Scenario: Annual CTC of ₹12,00,000 (12 LPA) under New Tax Regime

Inputs: CTC: ₹12,00,000 | Basic: 40% (₹4,80,000) | PF: Statutory capped

Calculation: Gross: ~₹11,10,000 | Deductions: Employee PF (₹21,600) + PT (₹2,400) + TDS (~₹60,000)

Result: Estimated Monthly Take-Home: ~₹85,000 - ₹88,000 / month

Assumptions & Disclaimers

Key Assumptions:

Basic salary is assumed at 40% of CTC unless customized.
Employee PF is 12% of basic pay.
Professional Tax is standard ₹200/month (₹2,400/year).
Tax calculation applies New Tax Regime standard deduction of ₹75,000.

Actual salary slips vary by employer due to variable pay, flexible benefit plans (FBP), corporate medical insurance, and performance bonuses. Check your official offer letter for exact terms.

Frequently Asked Questions

Cost to Company (CTC) includes employer contributions like Employer PF (12%), Gratuity (4.81%), insurance premiums, and variable bonuses that are not part of your monthly paycheck.