Sana signed a ₹2.2 lakh junior graphic designer role in Lucknow. The offer letter said ₹18,333 a month. The bank credit was ₹15,492. None of that gap is tax. It is your own EPF, a ₹2,400 professional tax, and the employer PF plus gratuity that sit inside CTC. In-hand at 2.2 LPA works out to about 85% of CTC.
What ₹2.2 lakh CTC actually contains
Standard 50% basic structure at ₹2.2L:
| Component | Annual | Monthly |
|---|---|---|
| Basic salary | ₹1,10,000 | ₹9,167 |
| HRA (50% of basic) | ₹55,000 | ₹4,583 |
| Special allowance | ₹36,509 | ₹3,042 |
| Employer PF (12% of basic) | ₹13,200 | ₹1,100 |
| Gratuity provision (4.81%) | ₹5,291 | ₹441 |
| Total CTC | ₹2,20,000 | ₹18,333 |
Employer PF plus gratuity comes to ₹18,491. That money sits inside the ₹2.2 lakh CTC and never lands in your salary account. Your gross salary, the part payroll actually pays, is ₹2,01,509 a year.
2.2 LPA in-hand salary: the take-home math
| Item | Annual | Monthly |
|---|---|---|
| Gross salary (excl. employer PF + gratuity) | ₹2,01,509 | ₹16,792 |
| Less: Employee PF | ₹13,200 | ₹1,100 |
| Less: Professional tax (Karnataka) | ₹2,400 | ₹200 |
| Less: Income tax | ₹0 | ₹0 |
| In-hand | ₹1,85,909 | ₹15,492 |
Taxable income after the ₹75,000 standard deduction is ₹1,26,509, and the 87A rebate wipes out any tax the slabs produce. So income tax is zero. The only money leaving your gross is your own PF of ₹13,200 and ₹2,400 of professional tax.
Why in-hand is about 85% of CTC here
Your in-hand at ₹2.2 lakh is ₹1,85,909, roughly 85% of CTC. This is the widest your take-home ratio ever gets. It only shrinks as tax bites at higher salaries. The share reaching your hand only drops from here: about 80% near ₹16 lakh, 75% near ₹30 lakh, under 60% at ₹1 crore.
The ₹1,100 a month into PF is part of that gap. Your employer adds the same again, so close to ₹2,200 a month is quietly compounding for you. Track it with the EPF calculator.
In-hand salary across nearby CTC bands
| CTC | Monthly in-hand | Income tax / year |
|---|---|---|
| ₹1L | ₹6,933 | Zero |
| ₹1.5L | ₹10,499 | Zero |
| ₹1.8L | ₹12,639 | Zero |
| ₹2L | ₹14,066 | Zero |
| ₹2.2L | ₹15,492 | Zero |
| ₹2.3L | ₹16,206 | Zero |
| ₹2.4L | ₹16,919 | Zero |
| ₹2.5L | ₹17,632 | Zero |
| ₹2.6L | ₹18,346 | Zero |
All figures: new regime, Karnataka professional tax, 50% basic, FY 2025-26. Enter your own CTC and city into the in-hand salary calculator for an exact number.
Sources
- Income Tax Act 1961: Section 115BAC new regime slabs, ₹75,000 standard deduction, Section 87A rebate (FY 2025-26)
- EPFO: 12% employee plus 12% employer PF contribution on basic salary
- Payment of Gratuity Act 1972: 4.81% gratuity provision formula
- State Professional Tax Acts (Karnataka rate used as the representative figure)