How we calculated take-home for ₹18 LPA
Starting from a ₹18,00,000 annual CTC, basic salary comes to ₹7,20,000 (40% of CTC) and HRA to ₹2,88,000 (40% of basic). After removing employer PF (₹86,400) and gratuity accrual (₹34,632) — both part of CTC but never paid to you in cash — gross salary works out to ₹16,78,968. Your own PF contribution of ₹86,400 and ₹2,400 professional tax are then deducted, along with income tax under whichever regime you pick.
New regime puts ₹1,59,900 more in your pocket per year at this CTC level, under these default assumptions. This gap changes with your actual rent, 80C investments, and salary structure — small differences in basic/HRA percentage can shift the comparison meaningfully at this income level.
CTC vs in-hand salary — why they're never equal
CTC (cost to company) always overstates what lands in your bank account, because it includes non-cash components like employer PF contribution and gratuity accrual — money set aside for your future, not paid out monthly. For a full breakdown of every component and to run the numbers with your own company's salary structure, use our in-hand salary calculator.