Two employer costs come out of CTC first — the employer's PF contribution and the gratuity provision — leaving the gross salary. From gross, three employee-side deductions follow: your own PF contribution, professional tax levied by your state, and income tax.

Income tax is computed properly through the slabs, with the ₹75,000 standard deduction in the new regime or ₹50,000 plus your Chapter VI-A deductions in the old regime, then rebate and 4% cess. What remains is the in-hand figure.

Given: CTC ₹12,00,000, basic 40%, new regime, PT ₹200/month, PF on full basic

Basic = ₹4,80,000  ·  Employer PF = ₹57,600  ·  Gratuity = ₹23,088

Gross = 12,00,000 − 57,600 − 23,088 = ₹11,19,312

Employee PF = ₹57,600  ·  Professional tax = ₹2,400

Taxable = 11,19,312 − 75,000 = ₹10,44,312 → tax + cess ≈ ₹56,113

Take home ≈ 11,19,312 − 57,600 − 2,400 − 56,113 = ₹10,03,199/yr ≈ ₹83,600/month

• Slabs are for FY 2025-26 (AY 2026-27); rates change with each Union Budget.
• Professional tax varies by state — around ₹200/month in most states, nil in a few including Kerala's differing slab basis.
• Employee PF can be computed on actual basic or capped at the ₹15,000 statutory wage ceiling — both options are provided.
• Marginal relief on rebate and surcharge is not applied, so figures near thresholds may differ slightly.
• Employer-provided insurance, meal cards and reimbursements are not modelled.

Why is take home so much lower than CTC?
CTC includes employer contributions you never receive monthly, and gross is then reduced by PF, professional tax and income tax.

Which regime gives more in hand?
Usually the new one unless you have large deductions — switch the regime selector to compare.

Is PF money lost?
No — both your contribution and the employer's accumulate in your PF account with interest.