Salary Calculator India - In-Hand Salary, Tax Regimes & CTC

Worked Example (Illustrative Inputs)

Using a monthly CTC of Rs 60,000, basic salary at 40% of gross, HRA at 40% of basic, employee and employer PF inputs of 12%, Rs 200 professional tax, and no other deductions, the calculator estimates under the default new regime:

• Gross salary about Rs 57,252 per month
• Basic salary about Rs 22,901 and HRA about Rs 9,160 per month
• Employee PF about Rs 2,748 per month
• Pay before income tax about Rs 54,304 per month
• For a resident individual, estimated new-regime tax is Rs 0 because the taxable salary is below the section 87A rebate threshold; estimated in-hand remains about Rs 54,304 per month

The example assumes employer PF is included in CTC. It is not a statutory payroll example: change the inputs to match the offer letter or payslip. Old-regime results depend on the eligible deductions and exemptions you enter; tax, bonus, gratuity, insurance, and other benefits may be handled differently by an employer.

How to Use This Salary Calculator

1. Choose monthly or annual inputs based on your offer letter.
2. Enter CTC and set basic and HRA percentages to mirror your salary structure.
3. Choose the new or old tax regime, age band, and resident status. If using the old regime, enter eligible deductions and exemptions as an annual amount.
4. Add professional tax and other recurring deductions from your payslip.
5. Review pay before tax, estimated TDS, and in-hand salary after tax.

CTC vs In-Hand Salary in India

CTC is the employer's total cost and typically includes employer PF. In-hand salary is the amount you receive after employee PF, professional tax, other deductions, and income tax withheld as TDS. This calculator separates pay before tax from an estimated after-tax amount so you can see which assumptions affect the result.

How the Calculator Converts CTC

For a monthly result, the calculator first converts annual CTC to monthly CTC when needed. It then assumes employer PF is part of CTC, backs that amount out, splits gross salary into basic, HRA, and special allowance, and subtracts employee PF, professional tax, and other deductions. The selected tax regime then applies the published slab rates, standard deduction, eligible old-regime deductions, section 87A rebate, and 4% health and education cess to annual salary income. It applies the same monthly calculation to annual inputs and multiplies the result by 12.

Salary Components Explained

What Can Reduce Take-Home Salary

• Variable pay: If part of CTC is bonus-based, monthly in-hand can be lower than a simple monthly split.
• Insurance premiums: Employer-paid coverage may be part of CTC, or an employee premium may be deducted; check the offer letter.
• Meal cards or reimbursements: These can add value without arriving as unrestricted cash.
• TDS: The tax estimate is annual tax divided by 12; an employer's actual withholding can differ because of declarations, payroll timing, and other income.

Tips to Match Your Payslip

1. Use the exact basic and HRA split from your offer letter.
2. If your employer applies a PF wage ceiling or includes dearness allowance in the PF base, use the effective PF amount from your payslip; this tool does not calculate that ceiling.
3. Enter professional tax as per your state and month.
4. Add insurance premiums and other deductions for a closer in-hand estimate.

Assumptions and Limits

• The tool uses basic salary as its PF base and lets you enter an effective employee and employer PF rate. EPFO describes the standard employee contribution as 12% of basic wages plus dearness and retaining allowance for covered establishments; this calculator does not model those components, EPS/EDLI allocation, eligibility, or a wage ceiling.
• Professional tax is an input, not a national default. Enter the amount your employer actually withholds for the selected state and month; do not copy a different state's slab.
• For Tax Year 2026–27, the new regime uses the published 4–8–12–16–20–24 lakh bands and the old regime uses age-based slabs. The estimate uses a Rs 75,000 new-regime or Rs 50,000 old-regime standard deduction, a resident section 87A rebate up to Rs 60,000 when taxable income does not exceed Rs 12 lakh under the new regime or Rs 12,500 when taxable income does not exceed Rs 5 lakh under the old regime, and 4% health and education cess.
• Old-regime deductions/exemptions are user-entered and are not independently validated. Include only amounts supported by your Form 16 and records, and do not include professional tax in that field.
• Surcharge, special-rate income, capital gains, AMT, employer-specific exemptions, bonus timing, gratuity, insurance, and reimbursements are outside this calculator.
• CTC structures differ. If an offer includes non-cash benefits or irregular variable pay, the monthly split can overstate cash received even when the arithmetic is correct.

This is a planning estimate, not a payroll or tax determination. Verify the values against your offer letter, payslip, employer payroll team, and the latest primary guidance. The sources below explain the rules and filing context; they are not live inputs to this calculator.

• EPFO FAQ: contribution basis and current contribution guidance
• Income Tax Department: current salary tax slabs, regime choice, rebates, and cess for AY 2026-27
• Income Tax Department: salary TDS compliance and Form 16 context
• Income Tax Department: Tax Year 2026–27 transition and new-regime continuity
• Maharashtra GST Department: professional-tax rate schedule (Maharashtra example only)

Input boundaries and edge cases

• Blank, invalid, or negative CTC and deduction values are treated as zero; in-hand salary is never shown below zero.
• Basic percentage is limited to 20–60%, HRA to 0–60% of basic, and each PF input to 0–12% so an accidental entry cannot create an unbounded result.
• HRA is capped at the remaining gross amount after basic, and the remainder is shown as special allowance.
• Switching between monthly and annual input multiplies or divides CTC, professional tax, and other deductions by 12. It does not reproduce month-by-month professional-tax slabs or irregular payroll payments.
• Use the effective deduction from a payslip when a company uses a PF ceiling, dearness allowance, or a different contribution split; changing a percentage here is only an approximation.
• The old-regime deduction field is annual and capped at Rs 50 lakh for safe input handling; the calculator does not verify 80C limits, HRA exemption documents, or Form 16 entries.

Methodology and maintenance

The calculator starts with CTC, removes the employer PF amount selected in the inputs, splits the remaining gross amount into basic, HRA, and special allowance, then subtracts employee PF, professional tax, and other deductions. It then estimates salary tax under the selected new or old regime for Tax Year 2026–27and subtracts annual tax divided by 12 from the pay-before-tax figure. Values are calculated with decimals and rounded to the nearest rupee for display. The Instant Calculator editorial team owns the page; it was reviewed on 30 August 2026, with the next review triggered by a change to EPFO guidance, tax tables, a state professional-tax schedule, or the calculator inputs.

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