Salary Breakup Calculator

Calculate your in-hand salary from CTC. See PF, gratuity, income tax and all deductions.

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Enter your annual CTC above to see your salary breakup

How CTC is structured in India

CTC (Cost to Company) is the total amount a company spends on an employee annually. Your actual in-hand salary is CTC minus employer contributions and your own deductions.

Typical Salary Structure
Basic = 40% of CTC
HRA = 50% of Basic (metro)
Special Allowance = Remaining
Employer PF (12% of basic) and gratuity (4.81% of basic) are part of CTC but not part of your gross salary.
Deductions from Gross
Employee PF = 12% of Basic
Professional Tax = ₹2,400/yr
Income Tax = Per slab
In-hand = Gross − Employee PF − Professional Tax − TDS (income tax)

New vs Old Tax Regime

New Regime (Default)

Lower slab rates, no deductions (80C, HRA, etc.). ₹0 tax up to ₹7L income (with rebate). Standard deduction ₹75,000.

Old Regime

Higher slab rates but allows deductions — HRA, 80C (₹1.5L), 80D, LTA and more. Beneficial if deductions exceed ₹3.75L.

Which to choose?

Use a tax calculator to compare both. New regime is typically better for salaries below ₹15L with few deductions. Old regime suits those with home loans, heavy 80C investments.

Frequently asked questions

What is the difference between CTC and gross salary?

CTC includes employer contributions to PF (12% of basic) and gratuity (4.81% of basic) which are not paid to you directly. Gross salary = CTC minus employer PF and gratuity. Your in-hand salary is gross minus your own deductions (employee PF, professional tax, income tax).

Why is basic salary 40% of CTC?

40% is a common industry benchmark, but companies can set it differently. A higher basic means more PF contribution (good for retirement) but also higher income tax. Lower basic reduces PF deduction and may give more flexibility in allowances.

What is professional tax and who pays it?

Professional tax is a state-level tax on income from employment, profession, or trade. Most states cap it at ₹2,400 per year (₹200/month). Not all states levy it — Maharashtra, Karnataka, West Bengal, Tamil Nadu do; states like Delhi, UP do not.

Is gratuity deducted from my salary?

Gratuity is funded by the employer, not deducted from your pay. However, when it's "included in CTC," the employer's gratuity provision (4.81% of basic) is shown as part of your CTC, effectively reducing your gross salary.

What is the standard deduction in the new tax regime?

From FY 2024-25, salaried employees get a standard deduction of ₹75,000 under the new regime (increased from ₹50,000). This is automatically applied before calculating your taxable income.