Convert annual CTC to monthly take-home — both new and old tax regimes, all deductions
YOUR CTC BREAKDOWN
MONTHLY DEDUCTIONS
Annual CTC—
Annual Gross (to payslip)—
Income Tax / TDS (annual)—
Monthly Take-Home (In-Hand)—
CTC-to-In-Hand Ratio—
In-Hand Pay
All Deductions
Three Salary Structures for the Same ₹15 LPA — Three Different Take-Homes
Two colleagues join on the same ₹15 LPA CTC. One gets a structure with 40% basic, the other with 60% basic. Their monthly take-home differs by ₹3,200 — without any difference in salary. How? Higher basic means more EPF contribution, more gratuity provision in CTC, and a different HRA calculation. The colleague with 40% basic has ₹1,440/month going to EPF vs ₹2,160/month for the 60% basic person — and correspondingly more "special allowance" that hits their account directly. This is the structural reality of Indian salaries that most employees never understand until they're already employed.
Why CTC and In-Hand Differ — The 3 Invisible Deductions
CTC Component
Goes to
When You Get It
Impact on Monthly Take-Home
Employer EPF (12% of basic)
Your EPF account
Retirement / PF withdrawal
Never hits your bank monthly
Gratuity provision (4.81% of basic)
Gratuity fund
After 5 years of service
Never hits your bank monthly
Employee EPF (12% of basic)
Your EPF account
Retirement / PF withdrawal
Deducted from salary before crediting
Result: On a ₹15 LPA offer with 50% basic, you actually receive approximately ₹10,600/month less in your bank than a naive ÷12 calculation suggests — even before income tax.
New vs Old Regime — Which Saves More in FY 2026-27?
CTC Level
New Regime Take-Home
Old Regime (with 80C ₹1.5L + HRA)
Better?
₹6 LPA
≈₹44,500/mo
≈₹45,200/mo
Old by ~₹700
₹10 LPA
≈₹77,500/mo (zero tax)
≈₹74,800/mo
New by ~₹2,700
₹12 LPA
≈₹77,500/mo (zero tax)
≈₹74,100/mo
New by ~₹3,400
₹15 LPA
≈₹98,500/mo
≈₹98,000/mo
New slightly better
₹25 LPA
≈₹1,38,000/mo
≈₹1,42,000/mo
Old (HRA + 80C benefit)
Approximate. Metro city, 50% basic, EPF at statutory cap. Old regime assumes max 80C and HRA exemption for metro rental.
💡 The ₹12.75L Zero-Tax Threshold: Under the New Regime FY 2026-27, a salaried employee with gross income up to ₹12,75,000 pays zero income tax — thanks to the ₹75,000 standard deduction + Section 87A rebate of ₹60,000 (zero tax up to ₹12L taxable). This means someone earning ₹12 LPA CTC effectively receives their salary without any TDS for most of the year.
FAQ
What is included in CTC that is NOT part of gross salary? ＋
Three main items typically appear in CTC but not in your payslip gross: (1) Employer EPF contribution — goes directly to your EPFO account. (2) Gratuity provision — set aside by employer; paid only after 5 years. (3) Group health/life insurance premium — employer's cost, not yours. Some companies also include meal vouchers, transport allowances, and company car lease values in CTC. Always ask your HR to provide a detailed CTC breakup showing which components are "cash" and which are "non-cash/deferred."
Can I negotiate for a higher basic salary? ＋
Yes, and it has long-term implications. Higher basic means: more EPF accumulation (compounding at 8.25%), higher gratuity when you leave, and higher HRA exemption (if you rent). However, higher basic also means lower monthly take-home (more EPF deducted) and potentially higher professional tax. For long-tenured employees planning to stay 10+ years, negotiating higher basic is financially smart. For those who change jobs frequently, lower basic with higher special allowance maximises monthly cash.
What happens to my EPF money if I change jobs? ＋
You have two options: (1) Transfer your EPF balance to your new employer's account using the UAN (Universal Account Number) — this keeps the money growing and the years-of-service count continuous for EPS pension. (2) Withdraw the EPF balance if you have been unemployed for 2+ months. Withdrawal before 5 years of total service attracts income tax on the employer's contribution and interest. After 5 years, EPF withdrawal is entirely tax-free (EEE status). Always prefer transfer over withdrawal unless you genuinely need the money.