When you receive a job offer in India, the company usually mentions the salary in terms of CTC (Cost To Company). However, the amount you actually receive in your bank account every month is called the in-hand salary or take-home salary.
Understanding the difference between CTC and in-hand salary is important before accepting a job offer. This guide explains how salary is structured and how you can estimate your real income using our calculator.
You can try the calculator here:
Use the In-Hand Salary Calculator
CTC stands for Cost To Company. It represents the total amount a company spends on an employee in a year. It includes salary, bonuses, allowances, and benefits such as provident fund contributions.
However, not all of this money goes directly into your bank account. Some portions are deducted or allocated for benefits.
In-hand salary is the amount you actually receive every month after all deductions. It is also called the net salary or take-home salary.
The in-hand salary is usually lower than the CTC because certain deductions are applied before payment.
Several deductions reduce your take-home salary. The most common ones include:
India currently has two income tax systems: the Old Tax Regime and the New Tax Regime. Taxpayers can choose the regime that results in lower tax liability.
The new tax regime introduced under Section 115BAC offers lower tax rates but removes most deductions such as 80C, HRA, and 80D. It is now the default system for taxpayers.
For FY 2025-26, taxable income up to ₹12 lakh is effectively tax-free due to the rebate under Section 87A. Salaried employees can also claim a ₹75,000 standard deduction.
The old tax regime allows taxpayers to reduce their taxable income using deductions and exemptions. Common deductions include:
Salaried individuals can also claim a ₹50,000 standard deduction under the old regime.
Taxpayers with high deductions often benefit more from the old regime, while those with fewer investments usually pay less tax under the new regime.
Suppose your CTC is ₹10,00,000 per year. After deductions such as PF and taxes, your actual in-hand salary might be around ₹65,000 to ₹75,000 per month depending on your tax bracket and company structure.
The basic process involves:
Doing this manually can be time consuming, which is why using an online calculator makes the process faster and easier.
You can quickly estimate your monthly take-home pay using our tool.
Try the In-Hand Salary Calculator
No. CTC includes benefits and employer contributions, while in-hand salary is the amount you actually receive after deductions.
Because deductions such as provident fund, income tax, and professional tax reduce the amount paid to you each month.
It depends on your income and deductions. If you invest heavily in tax-saving instruments, the old regime may be better. Otherwise, the new regime often results in lower tax.
Before accepting a job offer, always estimate your take-home salary. Knowing your real monthly income helps you make smarter financial decisions.