CTC vs In-Hand Salary: Why Your Take-Home Is Lower

Last updated: October 2026

Your offer letter shows a big CTC number, but your bank credit each month is noticeably smaller. That gap is normal, and once you see where the money goes, it stops being a surprise.

Two layers of deductions

Part of your CTC is never paid to you monthly. Your employer's PF contribution (usually 12% of Basic) and a gratuity provision (about 4.81% of Basic) are counted in CTC but go into your PF account and a future gratuity payout. CTC minus these gives your gross salary.

Then your own deductions come out of gross salary: your PF contribution (12% of Basic), professional tax (around ₹2,400 a year in most states that levy it), and income tax deducted as TDS. What's left is your take-home.

Typical take-home at different CTCs

Assuming Basic is 50% of CTC, the new tax regime and Karnataka professional tax:

• ₹6,00,000 CTC → about ₹42,598 a month (no income tax)
• ₹12,00,000 CTC → about ₹85,395 a month (no income tax, thanks to the 87A rebate)
• ₹18,00,000 CTC → about ₹1,18,134 a month
• ₹24,00,000 CTC → about ₹1,50,986 a month

Take-home is roughly 85% of CTC up to ₹12 lakh, then falls to around 75-80% as income tax kicks in.

Ways to raise your take-home

• Compare both tax regimes. If you pay rent and have big deductions, the old regime can sometimes leave you more.
• Check how your Basic is set. A higher Basic means more PF (good for savings, lower monthly cash).
• Ask for the full breakup before accepting an offer, and compare offers on in-hand pay, not just CTC.