CTC to Take-home Salary: Worked Examples and Tax Assumptions

CTC includes employer costs; gross cash is the salary before employee deductions; net is what remains after those deductions. The salary and TDS calculator keeps all three separate and compares new and old tax regimes.

Illustrative new-regime examples

The examples below use Tax Year 2026–27, an October 2026 representative pay month, capped PF, a fifty-percent PF/gratuity wage planning assumption, gratuity inside CTC, Kerala's top PT band where applicable, no ESI and no variable or insurance costs. They annualise that representative month; actual month-by-month payroll can differ.

Replace the assumptions with the offer

Basic pay is not universally required to be fifty percent of CTC. Use the statutory wage structure checker for the statutory definition, then replace the planning wage assumption. ESI coverage and historical PF ceilings can alter contributions. A target bonus paid once a year is not guaranteed monthly cash.

Check employer costs once

Employer PF, ESI, insurance and gratuity provision may already be inside the quoted CTC. Deducting them twice understates gross salary. The calculator solves cash gross after the entered employer costs, then subtracts employee deductions and tax.

Choose the correct income year

Period check: AY 2026–27 concerns FY 2025–26 under the 1961 Act. Tax Year 2026–27 concerns April 2026–March 2027 under the 2025 Act. Familiar old section names below are explanatory labels, not current filing references.

For an offer comparison before tax, use the offer checker. For actual salary-slip arithmetic, use the payslip analyzer and preserve every deduction's basis.

Official sources and scope

Source review: 2026-10-08. Check the relevant notification and your own records before filing or settling an entitlement.

• Income-tax Act, 2025, amended by Finance Act 2026
• Income Tax Department: transition and salary TDS
• PIB: September 2026 EPF wage ceiling
• ESIC contribution guidance