CTC vs In-Hand Salary
Why ₹15 Lakhs CTC Feels Like ₹99,600 in Your Bank
“Woohoo! Got a ₹15 Lakhs CTC offer! That means ₹1,25,000 hits my bank account every single month!”
“Wait, what?! Only ₹99,600 was credited in my bank! Where did the remaining ₹25,400 vanish?! Did HR make an error?”
“Rahul, CTC means "Cost to Company". ₹1,36,075 of it is never paid monthly: employer PF (₹90,000), gratuity (₹36,075) and health insurance (₹10,000). From the rest, your own PF (₹90,000), professional tax (₹2,400) and TDS (₹76,272) are deducted.”
“Crystal clear now! Before accepting any job offer, I will calculate exact in-hand salary and tax slabs on fincalculator.in!”
Calculate Your Itemized CTC Breakup
Enter your gross package to simulate exact monthly take-home cash, EPF, Gratuity, and Tax deductions.
Enter CTC Package Details
Annual In-Hand Take-Home: ₹10.15 L (84.6% Take-Home % of CTC)
Monthly & Annual CTC Breakup Schedule
| Cost Component | Cost Component | Monthly (₹) | Annual (₹) |
|---|---|---|---|
| Basic Salary | Gross Salary (A) | ₹50,000 | ₹6.00 L |
| HRA (House Rent Allowance) | Gross Salary (A) | ₹25,000 | ₹3.00 L |
| Special / Other Allowances | Gross Salary (A) | ₹15,762 | ₹1.89 L |
| Employer EPF (12%) | Total Employer Retirals & Benefits (B) | ₹6,000 | ₹72,000 |
| Gratuity Contribution | Total Employer Retirals & Benefits (B) | ₹2,405 | ₹28,860 |
| Health Insurance (Employer Paid) | Health Insurance (Employer Paid) | ₹833 | ₹10,000 |
| Employee EPF (12% of Basic) | Total Employee Deductions (C) | -₹6,000 | -₹72,000 |
| Professional Tax (PT) | Total Employee Deductions (C) | -₹200 | -₹2,400 |
| Income Tax (TDS) | Total Employee Deductions (C) | ₹-0 | ₹-0 |
| Net Monthly In-Hand Take-Home | ₹84,562 | ₹10.15 L | |
About CTC (Cost to Company) Structure in India
Cost to Company (CTC) represents the total expenditure an employer incurs on an employee annually. It is divided into direct benefits (Gross Salary), indirect benefits (Employer EPF, Gratuity, Health Insurance), and variable components (Performance Bonus).
This page is about how a CTC offer is structured. To see what actually reaches your bank account each month after income tax, employee EPF and professional tax, use the Salary Calculator. CTC Calculator (Cost to Company to In-Hand)
Official Sources & Regulatory Guidelines
- Income Tax Department, Government of India: incometaxindia.gov.in
- Employees’ Provident Fund Organisation (EPFO): epfindia.gov.in
CTC to in-hand, with your numbers
CTC includes money that never reaches your bank: the employer's EPF and NPS contributions, the gratuity accrual and the group health premium are costs to the company, not salary paid to you. Take those out to get gross, then remove your own EPF, professional tax and income tax to reach in-hand. Variable pay is paid once a year, so it is left out of the monthly figure and shown as a separate payout; income tax on the whole year is spread evenly across the twelve months. Employer NPS is tax-free only up to 14% of basic (10% in the old regime); anything above that is taxed as salary.