In-hand salary = gross salary − employee PF − professional tax − income tax (TDS), where gross = CTC minus the employer's PF (and gratuity, if your CTC includes it). For tax year 2026-27 (FY 2026-27) the new regime is unchanged by Budget 2026: nil to ₹4 lakh, then 5% to ₹8 lakh, 10% to ₹12 lakh, 15% to ₹16 lakh, 20% to ₹20 lakh, 25% to ₹24 lakh and 30% above, with a ₹75,000 standard deduction and a rebate of up to ₹60,000 that makes taxable income up to ₹12 lakh tax-free. A ₹9 lakh CTC in Karnataka gives about ₹68,800 a month.
From CTC to gross to in-hand
CTC is the total cost of employing you, including amounts you never receive as salary. Work down in three steps:
- CTC to gross: subtract the employer's PF (12% of basic, usually capped at ₹25,000 PF wages, so up to ₹3,000 a month), any gratuity provision (4.81% of basic) and, where gross pay is within ₹21,000, the employer's ESI at 3.25%.
- Split gross: basic (commonly 40% to 50% of CTC), HRA (50% of basic in a metro, 40% elsewhere is a common design), and a special allowance for the balance.
- Gross to in-hand: subtract employee PF (12%), employee ESI if covered (0.75%), professional tax for your state and monthly TDS.
The Labour Codes count allowances above 50% of total remuneration as wages for PF and gratuity, which is why many employers now set basic at 50%.
Worked example: ₹18 lakh CTC in Bengaluru
| Item | Annual | Monthly |
|---|---|---|
| CTC | ₹18,00,000 | ₹1,50,000 |
| Basic (50% of CTC) | ₹9,00,000 | ₹75,000 |
| Employer PF (12% of ₹25,000) | ₹36,000 | ₹3,000 |
| Gross salary | ₹17,64,000 | ₹1,47,000 |
| HRA (40% of basic) | ₹3,60,000 | ₹30,000 |
| Special allowance | ₹5,04,000 | ₹42,000 |
| Taxable income (gross − ₹75,000) | ₹16,89,000 | |
| Tax: ₹20,000 + ₹40,000 + ₹60,000 + 20% of ₹89,000 | ₹1,37,800 | |
| Plus 4% cess | ₹1,43,312 | ₹11,943 |
| Employee PF | ₹36,000 | ₹3,000 |
| Karnataka PT | ₹2,500 | ₹200 (₹300 in February) |
| In-hand | ₹1,31,857 (₹1,31,757 in February) |
At ₹9 lakh CTC with the same structure, taxable income is ₹7,89,000; the slab tax of ₹19,450 is wiped out by the rebate, and in-hand is ₹68,800 a month (₹72,000 gross − ₹3,000 PF − ₹200 PT).
Just above ₹12 lakh of taxable income, marginal relief caps the tax at the income above ₹12 lakh. At ₹12,10,000 the slab tax is ₹61,500, but you pay only ₹10,000 plus cess.
Professional tax by state
The calculator includes only the states whose current slabs we checked on the state commercial-tax portal. Others are left out rather than guessed.
| State | Monthly salary | PT |
|---|---|---|
| Maharashtra | Men: up to ₹7,500 nil; ₹7,501 to ₹10,000 ₹175; above ₹10,000 ₹200 (₹300 in February). Women: nil up to ₹25,000, then ₹200 (₹300 in February) | Max ₹2,500 a year |
| Karnataka | ₹25,000 and above | ₹200 (₹300 in February) from 1 April 2025 |
| West Bengal | Up to ₹10,000 nil; to ₹15,000 ₹110; to ₹25,000 ₹130; to ₹40,000 ₹150; above ₹200 | Monthly |
| Gujarat | Up to ₹12,000 nil; above ₹12,000 | ₹200 |
| Telangana and Andhra Pradesh | Up to ₹15,000 nil; ₹15,001 to ₹20,000 ₹150; above ₹20,000 | ₹200 |
| Delhi, Haryana, Uttar Pradesh, Rajasthan | No professional tax | Nil |
Get payslips that match the offer
FundRaksha HR calculates PF, ESI and PT for every employee automatically on each payroll run, so the challans, ECR and payslips agree without a spreadsheet. Use the salary slip format and the offer letter format so the CTC you offer and the in-hand you pay are explained the same way. For old-regime HRA, use the HRA calculator.
Sources
- www.incometaxindia.gov.in/w/section-202-76
- www.incometaxindia.gov.in/w/section-156-88
- www.labour.gov.in/static/uploads/2026/09/2b0f1dbbd3769fc388416186ec145328.pdf
- www.mahagst.gov.in/public/uploads/menufiles/PT%20Rate%20Schedule%20updated%20upto%2031.03.
- ptax.karnataka.gov.in/FAQ
- gst.karnataka.gov.in/Profession.aspx
- comtax.wb.gov.in/Ptax-Schedule-New_(w.e.f._1-4-2014).pdf
- commercialtax.gujarat.gov.in/vatwebsite/download/schedule/Rate_of_Profession_Tax.pdf
- www.tgct.gov.in/tgportal/AllActs/APPT/APPTSchedule.aspx
- apct.gov.in/apportal/AllActs/APPT/APPTSchedule.aspx
- www.esic.gov.in/coverage