Aarambha: Learn & InvestYour CTC is what your company spends on you in a year, not what lands in your bank. Part of it goes to your PF, part to tax, and part to costs you never get as cash. Use it to find your real monthly take-home before you accept an offer or plan a budget.
Your numbers
Eighteen lakh rupees
One lakh rupees
Employer PF, gratuity and insurance: the parts you never get as cash.
Thirty six thousand rupees
Payslip PF × 12. At the ₹25,000 wage ceiling it's ₹36,000.
Two thousand four hundred rupees
Set by your state, up to ₹2,500 a year.
Your monthly take-home
₹1,27,633
85% of your CTC reaches your bank.
- Take-home for the year
- ₹15,31,600
- Income tax, new regime
- ₹1,30,000
- Monthly in the old regime
- ₹1,15,779
- Take-home₹15,31,60085%
- Income tax₹1,30,0007%
- PF and professional tax₹38,4002%
- Employer costs₹1,00,0006%
Tax year 2026-27 (FY 2026-27, AY 2027-28) · Checked 5 November 2026 by Prashanth Sekhar
Estimates for education, not tax, legal or investment advice. Report a wrong number
Understand your result
CTC is what you cost your employer, not what you get. Part of it never reaches you as cash (employer PF, gratuity, insurance), and from the rest come your PF, professional tax and income tax.
Since 17 September 2026 the PF wage ceiling is ₹25,000 a month, up from ₹15,000. If your PF is calculated on the ceiling, your PF and your employer's both went up, and your take-home went down a little.
A common mistake
Dividing CTC by 12 to plan your budget. Use the take-home figure, and keep variable pay out of your monthly plan until it's paid.
How it's worked out
Take-home = CTC − employer costs − your PF − professional tax − income tax.
Assumptions
- Tax year 2026-27, residents below 60, slab-rate income only (no capital gains). Includes the standard deduction, the rebate with marginal relief, surcharge above ₹50 lakh and 4% cess. Rounded to ₹10.
- Variable pay is paid in full. Other payroll deductions are left out.
Sources
- Income-tax Act, 2025, s.202: tax rates
- Income-tax Act, 2025, s.156: rebate
- Income-tax Act, 2025, s.19: standard deduction
- Finance Act, 2026: old-regime rates, surcharge, cess
- PF wage ceiling notification, S.O. 5109(E)
Updates
- 5 November 2026: Published. Rules checked against the Income-tax Act, 2025, the Finance Act, 2026 and the official October to December 2026 rates.
Questions people ask
Why is my in-hand so much lower than my CTC?
Employer costs, your own PF, professional tax and income tax all come out first. On many salaries, 15% to 25% of CTC never reaches the bank each month.
Is PF a loss?
No. Your PF and your employer's go into your PF account and earn interest. It's savings you can't spend yet, not money gone.
Which states have professional tax?
Several, including Maharashtra, Karnataka, West Bengal, Tamil Nadu, Telangana and Gujarat. It's at most ₹2,500 a year. Your payslip shows it.
Can I lower my tax by restructuring salary?
In the new regime, only a few things help, like employer NPS. In the old regime, HRA, LTA and meal cards can. Ask your HR what your company allows.