From CTC to take-home
Your CTC includes amounts you never receive each month: the employer's PF contribution and gratuity. The calculator removes those to get your gross salary, then subtracts your own PF, professional tax and income tax.
Tax slabs used (new regime, FY 2026-27)
- Up to ₹4 lakh: nil
- ₹4–8 lakh: 5%
- ₹8–12 lakh: 10%
- ₹12–16 lakh: 15%
- ₹16–20 lakh: 20%
- ₹20–24 lakh: 25%
- Above ₹24 lakh: 30%
Salaried people get a ₹75,000 standard deduction. The Section 87A rebate makes tax zero when taxable income is up to ₹12 lakh, so a salary of up to ₹12.75 lakh pays no tax. A 4% health and education cess is added to the tax. Budget 2026 kept these slabs unchanged.
Frequently asked questions
What is the in-hand salary for 12 LPA?
With 40% basic, capped PF and gratuity in CTC, taxable income stays under ₹12 lakh, so there is no income tax. Take-home is roughly ₹95,000 a month. Your payslip structure changes this.
Does this cover the old tax regime?
No. It uses the new regime, which is the default. The old regime only helps if you have large deductions such as 80C, HRA and home loan interest.
Why is my PF capped at ₹1,800?
Many employers calculate PF on a basic wage of ₹15,000, which gives 12% = ₹1,800 a month. Choose "12% of full basic" if your employer contributes on your whole basic pay.
Sources
- Income Tax Department: tax slabs ↗ – new regime slabs and rebate
- EPFO ↗ – provident fund rules