Your job offer shows one big number — your CTC — but a very different number lands in your bank account. So how much of your CTC do you actually take home in India? We ran the numbers across 12 salary bands for FY 2025-26 (new tax regime), and the pattern is striking: below ₹12 lakh you keep about 85%, but the share you take home falls steadily as your salary rises — to under 60% at a ₹1 crore CTC.
CTC vs in-hand salary in India (FY 2025-26)
| Annual CTC | Monthly in-hand | Annual in-hand | % of CTC in-hand | Income tax |
|---|---|---|---|---|
| ₹5 lakh | ₹35,465 | ₹4.26 lakh | 85.1% | ₹0 |
| ₹7.5 lakh | ₹53,297 | ₹6.40 lakh | 85.3% | ₹0 |
| ₹10 lakh | ₹71,129 | ₹8.54 lakh | 85.4% | ₹0 |
| ₹12 lakh | ₹85,395 | ₹10.25 lakh | 85.4% | ₹0 |
| ₹15 lakh | ₹1,00,308 | ₹12.04 lakh | 80.2% | ₹77,832 |
| ₹20 lakh | ₹1,29,339 | ₹15.52 lakh | 77.6% | ₹1.57 lakh |
| ₹25 lakh | ₹1,56,134 | ₹18.74 lakh | 74.9% | ₹2.64 lakh |
| ₹30 lakh | ₹1,80,693 | ₹21.68 lakh | 72.3% | ₹3.97 lakh |
| ₹40 lakh | ₹2,28,208 | ₹27.38 lakh | 68.5% | ₹6.83 lakh |
| ₹50 lakh | ₹2,75,722 | ₹33.09 lakh | 66.2% | ₹9.69 lakh |
| ₹75 lakh | ₹3,80,482 | ₹45.66 lakh | 60.9% | ₹18.51 lakh |
| ₹1 crore | ₹4,93,315 | ₹59.20 lakh | 59.2% | ₹26.37 lakh |
Five things the numbers show
- Up to ₹12 lakh CTC, you pay ₹0 income tax under the new regime — thanks to the ₹75,000 standard deduction and the enhanced Section 87A rebate. A salaried person can take home roughly ₹85,000/month on a ₹12 lakh CTC.
- There’s a clear cliff around ₹12–15 lakh. The moment income tax kicks in, the share you take home drops from ~85% to ~80%, then keeps falling.
- The more you earn, the smaller your share. In-hand falls from 85% at ₹12 lakh to 66% at ₹50 lakh and just 59% at ₹1 crore — driven by higher tax slabs and surcharge.
- Below ₹12 lakh, most of the “missing” money isn’t tax — it’s your own savings. The ~15% gap is almost entirely employer & employee PF and gratuity, which come back to you later.
- A ₹1 crore CTC does not mean ₹1 crore in the bank. It’s closer to ₹4.9 lakh a month, or ₹59 lakh a year, in hand.
Check your own number
These figures use a standard salary structure — your exact in-hand pay depends on your Basic %, HRA, and state professional tax. Work out your own with our free take-home salary calculator, and understand each payslip line in our guide on how to read your payslip.
Methodology
Figures assume: Basic pay = 50% of CTC; employer and employee Provident Fund at 12% of Basic; gratuity provisioned at 4.81% of Basic; professional tax of ₹2,400/year; and income tax under the new regime for FY 2025-26 (₹75,000 standard deduction, revised slabs, Section 87A rebate up to ₹60,000, applicable surcharge, and 4% cess). CTC is treated as fixed pay excluding variable bonuses. Surcharge marginal relief near threshold incomes is not modelled, so very high bands are indicative. This is educational analysis, not tax advice.
Cite this data: “CTC vs In-Hand Salary in India (FY 2025-26)”, SavesToGrow.com. Free to reference with a link back to this page.
Frequently asked questions
How much of a ₹12 lakh CTC is in-hand?
About ₹85,000 a month (₹10.25 lakh a year), or roughly 85% of CTC, under the new regime — with ₹0 income tax, since income up to ₹12 lakh of taxable income is effectively tax-free.
Why is my in-hand salary so much lower than my CTC?
CTC includes employer PF and gratuity that you don’t receive monthly, and your own PF, professional tax and income tax are deducted from the gross. Below ₹12 lakh, most of the gap is PF and gratuity — your own savings — rather than tax.
How much of a ₹1 crore CTC is in-hand?
About ₹4.9 lakh a month (₹59 lakh a year), or roughly 59% of CTC — the rest goes to income tax, surcharge, PF and gratuity.
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Prashant Thakur is the founder of SavesToGrow.com. He is not a financial advisor — he's a self-taught personal-finance enthusiast who learned to budget, save consistently, and invest from scratch, and now shares those hard-won lessons in plain, jargon-free English. Every guide is researched from primary sources such as the Income Tax Department, SEBI, RBI and AMFI, and reflects real, first-hand experience. Nothing on this site is professional financial advice — always do your own research or consult a SEBI-registered advisor before making money decisions.
