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What this tool does

Frequently asked questions

Why is my in-hand less than my CTC?

CTC includes employer contributions (EPF, gratuity, insurance) and pre-tax components. In-hand = CTC − employer EPF − gratuity provision − employee EPF − professional tax − income tax. Typical in-hand is 70-82% of CTC depending on regime and city.

What's a typical CTC breakup?

Roughly: Basic 40-50%, HRA 40-50% of basic, Special allowance (balance), EPF 12% of basic (employer + employee each), Gratuity 4.81% of basic. Exact split varies by company.

Is gratuity taxable?

Up to ₹20 lakh lifetime is tax-free under Section 10(10) (private sector), received only after 5 years of continuous service. This calculator shows it as a CTC component but you only get it on exit, not monthly.

Does professional tax apply to me?

Yes, if you work in Maharashtra, Karnataka, West Bengal, Telangana, Andhra Pradesh, Gujarat, Kerala, Tamil Nadu, and a few others. Amount is ₹200/month typically (Mar may be ₹300). Delhi, UP, Rajasthan don't have PT.