Tax
Gross vs Net Salary: CTC vs In-Hand Pay Explained
Also known as: CTC vs in-hand
Quick answer
Gross is your total package on paper; net is what actually lands in your bank after deductions.
Gross salary, often shown as CTC, is the full number an employer quotes, including allowances and their contributions.
Net or in-hand salary is what you actually receive after tax, PF, and other deductions are taken out.
Always negotiate and budget around in-hand pay, because CTC includes money you may never directly see each month.
For example
A ₹15L CTC might translate to only ₹95,000 or so in-hand per month once PF, tax, and other deductions are removed.
Gen Z practical guide
Skip the textbook — CTC vs in-hand freshers →Common questions
- What is the difference between gross and net salary?
- Gross salary is your total package before deductions. Net (in-hand) salary is what lands in your bank after income tax, PF, and other cuts.
- Is CTC the same as gross salary?
- CTC (Cost to Company) is broader — it includes employer PF, gratuity accrual, and benefits you may never see monthly. In-hand is always lower than CTC.
- How do I calculate in-hand from CTC?
- Subtract employee PF, professional tax, and income tax from your monthly gross. Use a take-home salary calculator — never divide annual CTC by 12.
- Why is my in-hand much lower than CTC?
- CTC bundles employer costs and annual perks. Only fixed monthly components minus deductions become in-hand pay.
- What is 12 LPA in-hand salary?
- Depends on fixed pay and deductions — typically not ₹1L/month. Use a take-home calculator; see our 12 LPA and 24 LPA in-hand guides for worked examples.
- What is 20 LPA in-hand salary?
- On fixed-heavy 20 LPA in a metro, in-hand is often roughly ₹1.2–1.4L/month after PF and tax — not ₹1.67L (CTC ÷ 12). Use our 20 LPA in-hand guide and take-home calculator.
- What is 24 LPA in-hand salary?
- On fixed-heavy 24 LPA in a metro, in-hand is often roughly ₹1.4–1.6L/month after PF and tax — not ₹2L. Use our 24 LPA in-hand guide and take-home calculator.
- What is 30 LPA in-hand salary?
- On fixed-heavy 30 LPA in a metro, in-hand is often roughly ₹1.7–1.9L/month after PF and tax — not ₹2.5L. Use our 30 LPA in-hand guide and take-home calculator.
- What is 31 LPA in-hand salary?
- On fixed-heavy 31 LPA in a metro, in-hand is often roughly ₹1.75–1.95L/month after PF and tax — not ₹2.58L (CTC ÷ 12). Use our 31 LPA in-hand guide and take-home calculator.
- What is 32 LPA in-hand salary?
- On fixed-heavy 32 LPA in a metro, in-hand is often roughly ₹1.8–2L/month after PF and tax — not ₹2.67L (CTC ÷ 12). Use our 32 LPA in-hand guide and take-home calculator.
- What is 33 LPA in-hand salary?
- On fixed-heavy 33 LPA in a metro, in-hand is often roughly ₹1.85–2.05L/month after PF and tax — not ₹2.75L (CTC ÷ 12). Use our 33 LPA in-hand guide and take-home calculator.
- What is 34 LPA in-hand salary?
- On fixed-heavy 34 LPA in a metro, in-hand is often roughly ₹1.9–2.1L/month after PF and tax — not ₹2.83L (CTC ÷ 12). Use our 34 LPA in-hand guide and take-home calculator.
- What is 35 LPA in-hand salary?
- On fixed-heavy 35 LPA in a metro, in-hand is often roughly ₹2.0–2.2L/month after PF and tax — not ₹2.92L (CTC ÷ 12). Use our 35 LPA in-hand guide and take-home calculator.