Question 1

How do I calculate in-hand salary from CTC?

Accepted Answer

In-hand (take-home) salary = CTC − Employer PF contribution − gratuity accrual (these don't reach your bank account) − Employee PF − professional tax − income tax (TDS). The exact split of CTC into Basic/HRA/Special Allowance varies by employer, so this is an estimate using typical structuring percentages you can adjust.

Question 2

Why is my in-hand salary lower than CTC divided by 12?

Accepted Answer

CTC includes employer PF contribution and gratuity accrual, which your employer sets aside but you don't receive monthly, plus your own PF contribution and taxes are deducted from what's left. In-hand is typically 70-80% of CTC depending on structure and tax slab.