What CTC actually contains
CTC is everything the company spends on you in a year. Only part of it reaches your bank account each month:
| Component | In monthly cash? |
|---|---|
| Basic + HRA + special allowance | Yes (minus deductions) |
| Employer PF contribution (12% of basic) | No — goes to your EPF account |
| Gratuity provision (~4.81% of basic) | No — paid only after 5 years of service |
| Employee PF (12% of basic) | No — deducted from your salary into EPF |
| Professional tax | No — deducted, goes to the state |
| TDS (income tax) | No — deducted monthly, adjusted at year end |
So the drop from CTC ÷ 12 to in-hand is: employer PF and gratuity are removed to get your gross salary, then employee PF, professional tax, and monthly TDS come out of that.
New regime slabs — FY 2025-26
| Taxable income | Rate |
|---|---|
| Up to ₹4,00,000 | Nil |
| ₹4,00,001 – ₹8,00,000 | 5% |
| ₹8,00,001 – ₹12,00,000 | 10% |
| ₹12,00,001 – ₹16,00,000 | 15% |
| ₹16,00,001 – ₹20,00,000 | 20% |
| ₹20,00,001 – ₹24,00,000 | 25% |
| Above ₹24,00,000 | 30% |
Standard deduction is ₹75,000. A Section 87A rebate zeroes the tax when taxable income is ₹12,00,000 or less, so a salaried person earning up to ₹12,75,000 gross pays no income tax. Just above that, marginal relief caps the tax at the amount over ₹12,00,000. A 4% health & education cess sits on top of the final tax.
When the old regime still wins
The old regime keeps its exemptions — 80C (₹1.5L), 80D, HRA, home-loan interest (₹2L), NPS 80CCD(1B) (₹50k) — but has a steeper curve (₹2.5L nil, then 5% / 20% / 30%) and only a ₹50,000 standard deduction. It beats the new regime only when your total deductions are large. As a rough line: below about ₹3.75–4L of deductions, the new regime almost always wins at FY 2025-26 slabs. Enter your realistic deductions on the left and compare the two columns.
Questions
Why is in-hand so far below CTC / 12?
Employer PF and gratuity are in CTC but not in cash; then your PF, professional tax, and TDS are deducted. In-hand is roughly 70–80% of CTC/12 before tax.
New or old regime?
New is default and tax-free up to ₹12.75L gross for salaried. Old only wins with large 80C/80D/HRA/home-loan deductions. Compare both columns above.
Is this my exact payslip?
No — it's an estimate. Allowance splits, PF base, and employer tax projection vary. Check your offer letter and payslip.
Variable pay / bonus?
Enter fixed CTC only. Variable pay is usually lump-sum and taxed when paid.