Quick Answer: Your take-home salary = CTC minus employer's PF contribution (12% of basic, included in CTC at many companies) minus professional tax minus income tax TDS minus any other deductions. A ₹10 lakh CTC typically gives ₹7–8 lakh in-hand depending on the salary structure, HRA city, and tax regime chosen.
Understanding CTC vs In-Hand Salary
CTC (Cost to Company) is the total cost the employer incurs for an employee — it includes basic salary, HRA, special allowances, employer PF contribution, gratuity, and other perks. Your in-hand salary is significantly lower because several deductions happen before payment.
Standard Salary Breakup (Typical)
| Component | % of CTC | Taxability |
|---|---|---|
| Basic Salary | 40–50% | Fully taxable |
| HRA | 20% (metro) / 16% (non-metro) of basic | Partially exempt (Section 10(13A)) |
| Special Allowance | Remaining | Fully taxable |
| LTA | 5% | Exempt twice in 4-year block |
| Employee PF | 12% of basic | Deducted from gross; tax-free (u/s 80C) |
| Professional Tax | State-specific | Deductible from income |
| TDS (income tax) | Per income slab | Deducted by employer monthly |
Frequently Asked Questions
Yes. Many companies include employer's PF contribution (12% of basic, up to ₹1,800/month) in the CTC figure. This is money going to your PF account but is not part of your take-home salary. Always check whether the CTC figure is "with PF" or "excluding PF contributions."
Variable pay (bonus, performance incentive) is typically paid quarterly or annually and is not part of fixed monthly take-home. It is fully taxable and TDS is deducted when disbursed. Our calculator shows fixed component only.