How CTC becomes in-hand salary
CTC (cost to company) is everything your employer spends on you. Your in-hand (take-home) salary is what reaches your bank after these deductions:
- Employer's PF (12% of basic) — part of CTC but goes to your EPF account, not your bank.
- Your PF (12% of basic) — deducted from gross salary into EPF.
- Income tax (TDS) — on the new regime by default, after the ₹75,000 standard deduction.
- Professional tax — up to ₹200/month in most states (₹2,500 a year).
- Variable pay — paid quarterly or yearly, so not part of the monthly credit.
- Possibly gratuity provision, insurance premium, food coupons and NPS, depending on the company.
Example
CTC ₹9,00,000 with 40% basic (₹3,60,000) and no variable pay: employer PF ₹43,200, your PF ₹43,200, gross ₹8,56,800, taxable after standard deduction ₹7,81,800 → tax ₹0 (rebate up to ₹12 lakh), PT ₹2,400. In-hand ≈ ₹8,11,200 a year = ₹67,600 a month.
Real payslips vary: some companies cap PF at ₹1,800/month (12% of ₹15,000), add gratuity or insurance to CTC, or structure allowances differently. Treat this as a close estimate and check your offer letter.
See the full tax working in the income tax calculator, or your HRA benefit in the HRA calculator.