₹ 12,00,000
₹
50%
%
₹ 200
₹
Net Salary Estimates
Monthly In-Hand Cash
₹ 82,450
Estimated Monthly TDS Tax
₹ 5,350
Monthly EPF Contribution (Employee)
₹ 6,000
Total Monthly Deductions
₹ 11,550
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CTC to In-Hand Salary Formulation
In-hand salary is calculated using the following sequential deduction flow:
Gross Monthly Salary = (Annual CTC - Employer EPF Share) / 12
Net In-Hand = Gross Monthly Salary - Employee EPF Share - PT - Monthly Income Tax (TDS)
Where:
- Basic Salary = CTC × Basic Percentage (usually 50%)
- Employee EPF Share = Basic Salary × 12% / 12
- Employer EPF Share = Basic Salary × 12% / 12 (if included in the CTC)
- Income Tax (TDS) = Computed based on the New Tax Regime slab structures.
Monthly vs Annual Component Breakdown
| Salary Component | Monthly Amount | Annualized Amount |
|---|
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Frequently Asked Questions
Professional Tax is a minor tax levied by various state governments in India on salaried professionals. It is capped at a maximum of ₹2,500 per year and typically deducted by employers as ₹200 per month (with ₹300 in the last month of the financial year).
Under the New Tax Regime, a flat standard deduction of ₹75,000 is automatically subtracted from your gross annual salary before computing income tax slabs. This lowers your taxable income, reducing monthly TDS deductions.