Salary Inputs
In-Hand Summary
Estimated Monthly In-Hand
₹0
Monthly Gross (CTC/12)₹0
Employee PF₹0
Professional Tax₹0
Monthly Tax (TDS)₹0
Other Deductions₹0
Total Monthly Deductions₹0
Estimate your monthly take-home salary from annual CTC with key deductions.
Your Cost to Company (CTC) is the total amount your employer spends on you, including components you never see in your bank account. It typically includes basic salary (40-50% of CTC), HRA, special allowances, employer EPF contribution, gratuity provision, insurance premiums, and sometimes variable pay or ESOPs. A CTC of ₹12 lakh does not mean you take home ₹1 lakh per month — actual in-hand salary is usually 65-75% of the CTC after all deductions.
Both you and your employer contribute 12% of your basic salary plus dearness allowance to the Employees' Provident Fund. Your share of 12% is deducted from your salary, while the employer's 12% is split — 8.33% goes to the Employee Pension Scheme (EPS, capped at ₹15,000 basic) and the remainder goes to EPF. This means on a basic salary of ₹25,000, a total of ₹6,000 is set aside every month, reducing your take-home but building a retirement corpus.
Professional tax is a state-level tax levied on salaried individuals, capped at ₹2,500 per year by the Constitution. States like Maharashtra and Karnataka deduct ₹200 per month (₹2,400 annually), while some states like Rajasthan and Delhi do not levy it at all. Your employer deducts professional tax at source and deposits it with the state government. The amount paid is fully deductible under Section 16(iii) of the Income Tax Act.
Your employer estimates your total annual income, applies the applicable tax slab rates and deductions you have declared (like 80C, 80D, HRA exemption), and divides the resulting tax liability by 12 to arrive at monthly TDS. If you fail to submit investment proofs by January-February, TDS in the last few months of the financial year can spike sharply. Declaring your investments early and submitting proofs on time ensures a steady and predictable monthly take-home.
Several parts of your CTC are deducted at source and never appear in your salary credit. These include the employee EPF contribution, professional tax, TDS on income tax, and your share of group health insurance premiums. On top of that, the employer's EPF contribution, gratuity provision, and employer insurance costs are part of your CTC but are paid by the company directly to third parties. Understanding these invisible deductions explains the gap between your CTC and your actual in-hand salary.
In-hand salary = CTC/12 minus monthly deductions (Employee PF + Professional Tax + Income Tax TDS + other deductions like insurance). Typically, in-hand is 60-75% of CTC depending on your tax bracket.
Key deductions from gross salary: Employee PF (12% of basic), Professional Tax (₹200/month in most states), TDS (income tax), ESI (if applicable), and voluntary deductions like NPS or insurance.
CTC includes everything the employer spends: basic, HRA, PF (both employee and employer), gratuity, insurance, bonuses. In-hand salary is what you actually receive monthly after all deductions.
Employee PF contribution is 12% of basic salary (capped at ₹15,000 basic for statutory compliance, though many companies contribute on full basic). Employer matches this 12% — 3.67% goes to EPF and 8.33% to EPS.
No. Professional tax varies by state and is capped at ₹2,500/year. Maharashtra charges ₹200/month (₹300 in February), Karnataka charges ₹200/month, while some states like Rajasthan don't levy it.