12 LPA In-Hand Salary in India

CTC, or Cost to Company, is the total annual amount your employer spends on you. It includes your basic salary, HRA, allowances, bonus, employer contributions to PF and gratuity, insurance premiums, and other perks. CTC is what the company budgets for you - it is not the amount that arrives in your bank account.

Take-home salary (also called in-hand salary) is the amount credited to your bank account every month after all statutory and voluntary deductions like employee PF, professional tax, income tax, and any loan EMIs you have authorised your employer to deduct.

Employer PF is technically part of your CTC, but it is not deducted from your monthly gross. It is paid by your employer directly into your EPF account. Most salary calculators (including this one) treat it as a CTC component that does not reach your bank account, so it reduces your in-hand salary relative to CTC.

Professional Tax (PT) is a state-level tax that varies from state to state, capped at ₹2,500 per year. Most states (Maharashtra, Karnataka, West Bengal, Telangana, Tamil Nadu, etc.) follow a slab system between ₹150 and ₹200 per month. Some states like Delhi, Haryana, UP, Rajasthan do not levy professional tax.

Gross salary is your fixed monthly pay before deductions - it does not include employer PF, gratuity, or insurance premiums. CTC includes all of these employer-borne costs in addition to your gross salary. Gross salary is always less than CTC.

This calculator focuses on statutory deductions like PF and professional tax. Income tax depends on your regime choice (old vs new), exemptions claimed (80C, 80D, HRA exemption, home loan interest), and other declared income. Use our dedicated Income Tax Calculator for a precise post-tax in-hand figure.

Most Indian companies set basic salary between 40% and 50% of CTC. A higher basic increases your EPF contribution (which is 12% of basic) and HRA but reduces in-hand. Companies typically prefer 40-45% to balance employee in-hand and statutory compliance.

HRA, or House Rent Allowance, is a component of salary given to employees who live in rented accommodation. It is typically 50% of basic salary for metro cities (Delhi, Mumbai, Kolkata, Chennai) and 40% for non-metro cities. HRA is partially or fully tax-exempt under Section 10(13A).

EPF is mandatory for employees earning a basic salary up to ₹15,000 per month in companies with 20 or more employees. Above this threshold, both employer and employee can choose to continue contributing 12% of actual basic, or opt to cap contributions at ₹1,800 per month (12% of ₹15,000).

The bonus may be a performance bonus, joining bonus, or statutory bonus under the Payment of Bonus Act. It is typically paid annually or quarterly and is not part of your monthly gross. This calculator deducts bonus from CTC before computing monthly gross.

No, TDS depends on your tax regime, declared investments, and rent receipts. The numbers shown reflect pre-tax in-hand salary after statutory deductions only. Use this as a baseline and reduce TDS using our Income Tax Calculator for a final figure.

Gratuity is a lump-sum amount paid by your employer if you complete 5 or more years of continuous service. It equals (Last drawn basic + DA) × 15/26 × years of service. Most employers include 4.81% of basic as gratuity in CTC.