Salary Calculator — CTC to In-Hand

It is a close planning estimate. It assumes a standard structure (Basic = 40% of CTC, HRA = 50% of Basic, employer PF = 12% of Basic, gratuity ~4.81%) and applies FY 2025-26 slabs, standard deduction, 87A rebate and 4% cess. Your actual payslip can differ if your company uses a different Basic percentage, variable pay, ESIC or employer NPS. For a precise figure, use your offer letter breakup or ask a TaxClue expert.

Gross salary is Basic + HRA + special allowance — the earnings you are entitled to before deductions. Net (in-hand) salary is gross minus employee PF, professional tax and income tax. Gross excludes employer PF and gratuity, which are CTC components you never physically receive.

Under the EPF Act, both employee and employer contribute 12% of Basic + DA each month. The employee's 12% is deducted from salary (reducing take-home). The employer's 12% is split: 8.33% to EPS (pension, capped at ₹1,250/month) and 3.67% to EPF. PF is mandatory if Basic is below ₹15,000/month; above that you can opt out if not already a member. EPF currently earns tax-free interest set by the EPFO each year.

Professional tax is a small state-level tax on salaried income, capped at ₹2,500 per year by the Constitution. Most states deduct around ₹200/month (₹2,400/year); some, like Maharashtra, deduct ₹300 in one month to hit ₹2,500. A few states (e.g. Delhi, Haryana, UP) levy no professional tax at all. This calculator uses ₹2,400/year as a standard estimate.

HRA is usually set at 40%–50% of Basic (50% for metros — Delhi, Mumbai, Chennai, Kolkata; 40% for non-metros). HRA exemption under Section 10(13A) is available only in the old regime and is the least of: (1) actual HRA received, (2) rent paid minus 10% of Basic, (3) 50%/40% of Basic. If you pay no rent or use the new regime, the full HRA is taxable.

Under the new regime (default from FY 2024-25), slabs for FY 2025-26 are: 0% up to ₹4L, 5% on ₹4–8L, 10% on ₹8–12L, 15% on ₹12–16L, 20% on ₹16–20L, 25% on ₹20–24L and 30% above ₹24L, with a ₹75,000 standard deduction and a Section 87A rebate up to ₹60,000. This makes taxable income up to ₹12L (about ₹12.75L CTC) effectively tax-free, but most deductions are not available.

Under the new regime, a salaried person with taxable income up to ₹12 lakh pays ₹0 income tax because of the ₹60,000 Section 87A rebate. After the ₹75,000 standard deduction, that corresponds to a gross salary of about ₹12.75 lakh. Beyond ₹12L taxable income the rebate no longer applies and normal slab tax kicks in (subject to marginal relief just above the limit).

The new regime is generally better if you have few deductions or a higher CTC (above ~₹15L). The old regime can save more if you fully use 80C (₹1.5L), 80D health insurance, HRA exemption and NPS. There is no single answer — toggle both regimes in the calculator above with your own CTC and deductions to see which gives the higher in-hand.

TDS (tax deducted at source) is your employer's monthly estimate of your annual income tax, spread across 12 months. If your investments, HRA or other income differ from what you declared, your final tax at ITR filing may be higher or lower — leading to extra tax payable or a refund. This calculator shows the estimated annual tax; your actual TDS is 1/12th of it each month.

No. Employer PF (12% of Basic) and the gratuity provision are part of CTC but are never paid to you in cash — employer PF goes to your EPF/EPS account and gratuity is paid only on exit after 5 years. The breakdown table lists them as CTC components at reduced opacity so you can see why in-hand is lower than CTC.

Choose the regime with the lower tax, claim HRA with rent receipts (old regime), max out 80C/80D/NPS deductions, restructure salary into tax-free allowances (LTA, meal card, phone/internet reimbursement) and opt for employer NPS (up to 10% of Basic is deductible even in the new regime). Small structuring changes can add thousands to monthly in-hand.

This calculator treats the full CTC you enter as fixed annual pay. If your offer has a large variable/bonus component, enter only the fixed CTC for a monthly in-hand estimate, and treat the bonus separately — it is usually paid quarterly or annually and taxed at your slab rate when received.