Salary Calculator
Get a detailed breakdown of your salary from CTC to the final take-home amount, including all deductions.
Salary Take-Home Calculator: A salary take-home calculator converts a gross CTC (Cost to Company) into the actual monthly in-hand salary after deducting EPF (12% of basic), professional tax, and TDS. For FY 2025-26, a ₹10 lakh CTC employee takes home approximately ₹71,000–₹76,000/month under the new tax regime with the ₹75,000 standard deduction.
Reviewed by
CA Arjun Mehta
CA (ICAI) · B.Com (Hons) · 9+ years · Income Tax, GST & Investment Planning
Last reviewed: June 2026 · Salary & TDS Computation
💼 Quick Reference: Monthly In-Hand Salary from CTC (FY 2025-26, New Tax Regime)
| Monthly CTC | Annual CTC | PF Deduction | TDS (new regime) | ✅ In-Hand / Month |
|---|---|---|---|---|
| ₹20,000 | ₹2.4 L | ₹1,800 | ₹0 | ~₹17,800 |
| ₹25,000 | ₹3.0 L | ₹1,800 | ₹0 | ~₹22,700 |
| ₹30,000 | ₹3.6 L | ₹1,800 | ₹0 | ~₹27,500 |
| ₹40,000 | ₹4.8 L | ₹1,800 | ~₹750 | ~₹36,700 |
| ₹50,000 | ₹6.0 L | ₹1,800 | ~₹2,100 | ~₹45,400 |
| ₹75,000 | ₹9.0 L | ₹1,800 | ~₹4,500 | ~₹67,900 |
| ₹1,00,000 | ₹12.0 L | ₹1,800 | ~₹8,600 | ~₹88,800 |
Assumes basic salary = 50% of CTC, HRA = 40% basic, standard deduction ₹75,000 (Budget 2024). PF = 12% of basic (capped ₹1,800/mo at ₹15K wage ceiling). Professional tax varies by state (~₹200/mo). Use the calculator above for your exact CTC structure.
Updated for FY 2025-26 (Budget 2025)
⚡ Try Quick CTC Presets
Monthly Take-Home Salary
₹ 1,02,458
Annual Take-Home: ₹ 12,29,500
Monthly Earnings
Monthly Deductions
📊 Salary Components Breakdown
💸 Monthly Deductions Breakdown
💼 Real Salary Breakdown Examples for Indians
See how CTC translates to take-home salary in different scenarios (FY 2025-26)
👨💻 Example 1: IT Professional in Bangalore (New Tax Regime)
Package Details:
- • Annual CTC: ₹15,00,000
- • Basic Salary: 40% = ₹6,00,000/year (₹50,000/month)
- • HRA: 50% of Basic = ₹3,00,000/year (₹25,000/month)
- • Special Allowance: ₹4,92,000/year (₹41,000/month)
- • Employer EPF: ₹1,08,000/year
- • State: Karnataka
- • Tax Regime: New
Salary Breakdown:
Monthly Earnings:
Basic: ₹50,000
HRA: ₹25,000
Special: ₹41,000
Gross: ₹1,16,000
Monthly Deductions:
EPF (12%): ₹6,000
Professional Tax: ₹200
Income Tax (TDS): ₹7,342
Total: ₹13,542
Monthly Take-Home: ₹1,02,458
Annual: ₹12,29,496
👔 Example 2: Manager in Mumbai (Old Tax Regime with Deductions)
Package Details:
- • Annual CTC: ₹25,00,000
- • Basic Salary: 45% = ₹11,25,000/year (₹93,750/month)
- • HRA: 50% of Basic = ₹5,62,500/year (₹46,875/month)
- • Special Allowance: ₹6,57,000/year (₹54,750/month)
- • Employer EPF: ₹21,600/year (capped)
- • State: Maharashtra
- • Tax Regime: Old
- • 80C Deductions: ₹1,50,000 (PPF, ELSS)
- • 80D Health Insurance: ₹25,000
- • HRA Exemption (Section 10): ₹2,40,000
Tax Calculation:
Annual Gross: ₹23,44,500
– Standard Deduction: ₹50,000
– 80C: ₹1,50,000
– 80D: ₹25,000
– HRA Exemption: ₹2,40,000
Taxable: ₹17,79,500
Annual Tax:
Up to ₹3L: ₹0
₹3L-7L: ₹20,000
₹7L-10L: ₹30,000
₹10L-12L: ₹30,000
₹12L-15L: ₹60,000
Above ₹15L: ₹83,850
+ Cess (4%): ₹8,954
Total: ₹2,32,804
Monthly TDS: ₹19,400
Monthly Take-Home: ₹1,73,767
Annual: ₹20,85,204
🎓 Example 3: Fresh Graduate in Chennai (New Tax Regime)
Package Details:
- • Annual CTC: ₹5,00,000
- • Basic Salary: 40% = ₹2,00,000/year (₹16,667/month)
- • HRA: 50% of Basic = ₹1,00,000/year (₹8,333/month)
- • Special Allowance: ₹1,52,000/year (₹12,667/month)
- • Employer EPF: ₹48,000/year
- • State: Tamil Nadu
- • Tax Regime: New
Tax Calculation:
Annual Gross: ₹4,52,000
– Standard Deduction: ₹75,000
Taxable: ₹3,77,000
Below ₹4L slab – Zero tax!
✅ Zero Income Tax
Income below ₹4 lakh threshold
Monthly Take-Home: ₹35,667
Annual: ₹4,28,004
Deductions: EPF ₹2,000 + Prof Tax ₹167
💼 Example 4: Senior Professional in Delhi (High Income Bracket)
Package Details:
- • Annual CTC: ₹50,00,000
- • Basic Salary: 40% = ₹20,00,000/year (₹1,66,667/month)
- • HRA: 50% of Basic = ₹10,00,000/year (₹83,333/month)
- • Special Allowance: ₹17,84,000/year (₹1,48,667/month)
- • Employer EPF: ₹21,600/year (capped)
- • State: Delhi
- • Tax Regime: New (simpler at high income)
Tax Calculation:
Annual Gross: ₹47,84,000
– Standard Deduction: ₹75,000
Taxable: ₹47,09,000
Annual Tax:
₹0-4L: ₹0
₹4-8L: ₹20,000
₹8-12L: ₹40,000
₹12-16L: ₹60,000
₹16-20L: ₹80,000
₹20-24L: ₹1,00,000
Above ₹24L: ₹6,92,700
Base Tax: ₹9,92,700
+ Cess (4%): ₹39,708
Total: ₹10,32,408
Monthly TDS: ₹86,034
Monthly Take-Home: ₹3,11,766
Annual: ₹37,41,192
Effective tax rate: ~21.6%
🔧 How Salary Calculation Works – Complete Guide
Understanding CTC (Cost to Company)
CTC is NOT your take-home salary! It’s the total annual expense a company incurs on you, including:
✅ Direct Cash Components: Basic, HRA, Special Allowances
✅ Employer Contributions: EPF (employer’s 12%), Gratuity, Insurance
✅ Benefits: Food coupons, Mobile reimbursement, LTA (Leave Travel Allowance)
Example: CTC ₹15L might include ₹13.92L direct salary + ₹1.08L employer EPF
Step-by-Step Salary Breakdown
Calculate Basic Salary (40-50% of CTC)
Basic = CTC × Basic%
Example: ₹15L × 40% = ₹6L/year = ₹50,000/month
Calculate HRA (40-50% of Basic)
HRA = Basic × HRA%
Example: ₹6L × 50% = ₹3L/year = ₹25,000/month
Calculate Employer EPF Contribution
Employer EPF = 12% of Basic (capped at ₹15,000 basic/month)
Example: 12% of ₹50,000 = ₹6,000/month = ₹72,000/year
⚠️ If basic >₹15k/month, EPF capped at ₹1,800/month
Calculate Special Allowance (Remaining CTC)
Special Allowance = CTC – Basic – HRA – Employer EPF
Example: ₹15L – ₹6L – ₹3L – ₹72k = ₹5.28L
Calculate Gross Salary (What you earn)
Gross = Basic + HRA + Special Allowance
Example: ₹6L + ₹3L + ₹5.28L = ₹14.28L/year
Subtract Deductions
❌ Employee EPF: 12% of basic (same cap)
❌ Professional Tax: State-specific (₹200-300/month)
❌ Income Tax (TDS): Based on tax regime and deductions
Net Take-Home Salary
Take-Home = Gross – All Deductions
This is what hits your bank account!
New vs Old Tax Regime (FY 2025-26)
| Feature | New Tax Regime (Default) | Old Tax Regime |
|---|---|---|
| Tax-Free Income | Up to ₹12 lakh (₹12.75L for salaried) |
Up to ₹7 lakh (with rebate) |
| Standard Deduction | ₹75,000 | ₹50,000 |
| 80C Deduction (PPF, ELSS) | ❌ Not Available | ✅ Up to ₹1.5L |
| HRA Exemption | ❌ Not Available | ✅ Available |
| Home Loan Interest | ❌ Not Available | ✅ Up to ₹2L |
| Best For | No investments Lower income Simple filing |
High investments (80C) Paying rent (HRA) Home loan |
EPF (Employee Provident Fund) Explained
EPF is a retirement savings scheme:
- Employee Contribution: 12% of basic salary (deducted from salary)
- Employer Contribution: 12% of basic salary (part of CTC, not in-hand)
- Calculation Cap: Only on basic up to ₹15,000/month
- Interest Rate: ~8.25% per year (FY FY 2025-26)
- Tax Benefit: Triple benefit (EEE) – Exempt on contribution, growth, and withdrawal
- Withdrawal: After 5 years or upon retirement/resignation
💡 Example: Basic ₹50k → You pay ₹6k, Employer pays ₹6k = ₹12k/month into your EPF account!
Professional Tax by State
| State | Monthly Tax | Annual Tax | Eligibility |
|---|---|---|---|
| Maharashtra | ₹208 | ₹2,500 | Salary >₹10k/month |
| Karnataka | ₹200 | ₹2,400 | All salaried |
| Tamil Nadu | ₹167 | ₹2,000 | Salary >₹21k/month |
| West Bengal | ₹175 | ₹2,100 | All salaried |
| Others | ₹200 | ₹2,400 | Varies |
*Rates are approximate. Check your state’s labor department for exact slabs.
❓ Comprehensive FAQ on Indian Salary Structure
Why is my take-home salary much less than CTC?
CTC includes employer contributions (EPF, gratuity, insurance) that you don’t receive directly. Your take-home is reduced by employee EPF (12% of basic), professional tax, and income tax (TDS). Typically, take-home is 70-85% of CTC depending on tax bracket and deductions.
What is the ideal Basic:HRA:Special Allowance ratio?
Common Structure: Basic 40-50%, HRA 40-50% of basic, rest as Special Allowance. Higher basic means higher EPF (retirement savings) but also higher deductions. Lower basic reduces EPF but increases take-home. Most companies use 40-45% basic, 50% HRA (of basic), rest special allowances.
Can I opt out of EPF to increase take-home?
No, EPF is mandatory for all establishments with 20+ employees if your basic salary is ≤₹15,000/month. Even if basic >₹15k, most companies keep it mandatory. EPF is beneficial long-term: 8.25% annual interest, tax-free corpus, and employer’s matching contribution (essentially doubling your savings).
What happens to employer EPF contribution in CTC?
Employer contributes 12% of your basic to your EPF account (capped at ₹1,800/month if basic >₹15k). This contribution is part of your CTC but doesn’t come to you monthly—it goes directly to your EPF account. You can withdraw it after 5 years or upon leaving the job.
How do I decide between New and Old tax regime?
Choose New Regime if: (1) Income <₹12L and no investments, (2) No home loan, (3) Not paying rent or low HRA exemption. Choose Old Regime if: (1) Investing in 80C (₹1.5L), (2) Paying rent with high HRA exemption, (3) Home loan interest, (4) High 80D health insurance. Use our comparison tool to calculate exact savings.
When is TDS (income tax) deducted from salary?
TDS is deducted monthly from your salary based on your projected annual income. Your employer asks for investment declarations (80C, 80D, HRA proof) at the start of the financial year and adjusts TDS accordingly. If you don’t submit proofs, full tax is deducted and you can claim refund while filing ITR.
What is Standard Deduction and how does it help?
Standard Deduction is a flat deduction available to all salaried individuals without any proof or investment. New Regime: ₹75,000. Old Regime: ₹50,000. It’s automatically applied by your employer when calculating TDS. This reduces your taxable income directly.
Does this calculator account for gratuity and bonuses?
This calculator focuses on regular monthly salary components. Gratuity: Payable after 5 years of service (not monthly component). Performance Bonus: Variable component, taxed when received. Joining Bonus: One-time, taxed in the month received. These are typically separate from your regular CTC breakdown.
Can I claim HRA exemption if I don’t pay rent?
No. HRA exemption (in old regime) is only available if you actually pay rent and have rent receipts/rental agreement. If you live in your own house or with parents for free, the entire HRA is taxable. You can pay nominal rent to parents (with rent agreement and bank transfer) to claim exemption.
What is Form 16 and when do I get it?
Form 16 is a TDS certificate issued by your employer showing: (1) Total salary paid, (2) TDS deducted, (3) Tax deposited with government. You receive it by June 15th for the previous financial year (Apr-Mar). It’s essential for filing your Income Tax Return (ITR). If you switch jobs mid-year, get Form 16 from both employers.
How does Variable Pay affect my salary calculation?
Variable pay (performance bonus, quarterly incentives) is usually excluded from monthly CTC breakup. It’s paid separately (quarterly/annually) based on performance. When paid, it’s: (1) Fully taxable as salary income, (2) TDS deducted at the time of payment, (3) Included in Form 16. Example: CTC ₹15L might be ₹13.5L fixed + ₹1.5L variable.
What deductions can I claim to reduce tax in Old Regime?
Major Deductions: (1) 80C: PPF, EPF, ELSS, Life Insurance (up to ₹1.5L), (2) 80D: Health insurance (₹25k-₹1L), (3) Section 10: HRA exemption, LTA, (4) 24(b): Home loan interest (₹2L), (5) 80CCD(1B): NPS (₹50k additional). Plan investments at year start to optimize TDS.
How accurate is this calculator for my actual salary?
This calculator provides 95%+ accuracy for standard salary structures. Minor variations may occur due to: (1) Mid-year salary hike (different TDS calculations), (2) Perks/allowances not covered (LTA, medical reimbursement), (3) Exact professional tax slabs by state, (4) Company-specific policies. For exact calculation, refer to your company’s payroll team or CA.
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💡 5 Expert Tips
Professional advice to get the most from Salary Calculator
Compare Both Regimes Every April Before Informing HR
The new tax regime is default from FY 2023-24. But if you have home loan, HRA, and LIC premium, old regime may save more. Always use an income tax calculator to compare BEFORE you inform your employer at the start of each financial year in April.
Max Out NPS Beyond 80C for Extra ₹50,000 Deduction
Section 80CCD(1B) allows ₹50,000 additional NPS deduction over and above the ₹1.5L 80C limit. At 30% bracket, this saves ₹15,450/year extra. Open NPS on the NSDL portal and invest ₹4,167/month to claim the full deduction every year.
Harvest ₹1.25 Lakh LTCG Tax-Free Each Year
Long-term capital gains up to ₹1.25 lakh per year from equity/mutual funds are completely tax-free. Systematically sell and rebuy mutual fund units each March to "harvest" up to ₹1.25L in gains tax-free annually. This can save ₹15,000+/year over your investing life.
Claim HRA Even If Parents Own the House
If you pay rent to your parents (where they own the house), you can legitimately claim HRA exemption. Your parents must declare this as rental income (taxable in their hands, but often in lower bracket). Family tax planning through legitimate rent can save ₹30,000–₹80,000/year.
Use Form 12BB Correctly — Declare All Savings in April
Submit Form 12BB to your employer at the start of the financial year declaring all planned 80C, 80D, HRA, and home loan investments. If you under-declare, HR deducts higher TDS. If over-declared, you get a refund later but lose liquidity. Calculate accurately upfront.
❓ Frequently Asked Questions
Everything you need to know about Salary Calculator
Q1. Which tax regime is better — Old or New for FY 2025-26?
New regime is better if your total deductions (80C + 80D + HRA + home loan interest) are less than ₹3.75 lakh. Old regime wins if deductions exceed ₹3.75 lakh. For most salaried employees under ₹12L income, the new regime gives zero tax due to ₹12L threshold (₹12.75L with standard deduction). Always calculate both.
Q2. Is income up to ₹12 lakh truly tax-free in FY 2025-26?
Under the new regime, the ₹12L threshold works via Section 87A tax rebate — it applies to normal income (salary, rent, FD interest). Special rate income (capital gains on shares, lottery winnings) is NOT eligible for the rebate. So LTCG from equity can attract tax even if total income is under ₹12L.
Q3. What is the 30% tax bracket and who does it apply to?
The 30% income tax slab applies to income above ₹15 lakh in the new regime (above ₹10L in old regime). With 4% Health & Education Cess, effective rate becomes 31.2%. For income above ₹50 lakh, additional 10-25% surcharge applies, pushing effective rates to 34-42.7%.
Q4. How does Section 80C work and what qualifies?
Section 80C provides deduction up to ₹1.5 lakh per year for specific investments: EPF/VPF, ELSS, PPF, NSC, tax-saving FD (5-year), LIC premium, home loan principal repayment, SSY, NPS (within 80C), and tuition fees for 2 children. Available in old regime only.
Q5. What is TDS and how to check if correct TDS is being deducted?
TDS (Tax Deducted at Source) is advance tax deducted by your employer/bank. Check Form 26AS on the Income Tax portal (incometax.gov.in) to see total TDS deposited against your PAN. If employer deducts excess TDS, you get a refund when filing ITR. Under-deduction means you pay the balance while filing.
Q6. Can I claim home loan deduction in the new tax regime?
Section 24(b) home loan interest deduction (up to ₹2L for self-occupied property) is NOT available in the new regime. However, for let-out (rented) properties, actual interest paid can be claimed against rental income even in the new regime. If you have a large home loan, old regime is likely better.
Q7. What is advance tax and who needs to pay it?
If your total tax liability exceeds ₹10,000 in a year (after TDS), you must pay advance tax in installments: 15% by June 15, 45% by Sept 15, 75% by Dec 15, and 100% by March 15. Freelancers, consultants, and those with income from multiple sources typically need to pay advance tax.
Q8. How is HRA exemption calculated?
HRA exemption is the MINIMUM of: (1) Actual HRA received, (2) 50% of basic salary for metro cities (40% for non-metro), (3) Actual rent paid minus 10% of basic salary. If you pay rent to parents, you can claim HRA — parents must declare it as rental income in their ITR.
Q9. What is LTCG and STCG tax on mutual funds and shares?
LTCG (holding >1 year) on equity and equity MF: 12.5% on gains above ₹1.25L/year (as of Budget 2024-25). STCG (holding ≤1 year) on equity: 20%. For debt mutual funds (held any period): taxed at your income tax slab rate (as per 2023 amendment). No indexation benefit for any category now.
Q10. What deductions are available for senior citizens?
Senior citizens (60-79 years): higher basic exemption ₹3L (old regime), 80TTB deduction up to ₹50,000 on FD/RD interest, 80D health insurance ₹50,000. Super seniors (80+): basic exemption ₹5L, no advance tax obligation, can file ITR-1 even for capital gains from equity up to ₹5L.
Q11. How to file ITR correctly if you switched jobs mid-year?
Collect Form 16 from both employers. Combine income from both. Clubbing income often means TDS was calculated on each job separately without knowing full-year income — resulting in underpayment that you must pay while filing ITR. Use Form 26AS to verify total TDS deducted. File ITR-1 (if only salary) by July 31.
Q12. What happens if I miss the ITR filing deadline?
Last date for ITR without penalty: July 31 (salaried). Belated return (Aug 1 to Dec 31) attracts ₹1,000-5,000 penalty under Section 234F. Interest under 234A (1%/month) applies on unpaid tax. Not filing also carries risk of notice, scrutiny assessment, and losses (equity LTCG exemption cannot be carried forward).
Calculator Disclaimer
For Informational Purposes Only: The Salary Calculator provides estimates based on the inputs you enter and standard financial formulas. Results are indicative only and do not constitute financial advice.
Not a Guarantee: Actual returns, tax liability, or financial outcomes may differ due to market conditions, regulatory changes, or individual circumstances not captured in the calculator.
Professional Advice: For significant financial decisions, please consult a SEBI-registered Investment Advisor, Chartered Accountant, or certified financial planner.
Data Currency: All rates, slabs, and parameters are updated periodically. Verify current rates from official sources (RBI, SEBI, Income Tax Department, IRDAI) before making decisions.
Income tax: incometax.gov.in. EPF: epfindia.gov.in. CBDT: cbdt.gov.in.
Last Updated: 17 Jun 2026 | Data Source: RBI, SEBI, Income Tax Act 1961, IRDAI | Maintained by CalcWise.Finance