In-Hand Salary Calculator

💼Details

Optional: Variable Pay & Bonus
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Quick mode uses standard assumptions. For precise calculations, .

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Ready to Calculate

Enter your CTC or salary details on the left to see your monthly in-hand salary, tax breakdown, and regime comparison

💡 Quick Tips

  • • Use Quick Mode for fast estimates
  • • Switch to Advanced for precise calculation
  • • Compare both tax regimes to save more

📚Salary & Tax Terms

CTC (Cost to Company)
Total yearly cost paid by employer = Gross + Employer PF + Employer NPS + Gratuity. Not your take-home!
Gross Salary
Taxable salary = Basic + HRA + Allowances + Bonuses. Used for tax calculation.
Basic Salary
Base component (35-50% of CTC). Basis for PF, HRA, NPS, gratuity calculations.
HRA (House Rent Allowance)
Allowance for rented accommodation. Tax-exempt in Old Regime based on rent paid and city.
Employee PF (EPF)
12% of basic. Deducted from salary, counts toward 80C (₹1.5L limit).
Employer PF
12% of basic. Part of CTC, not deducted from take-home. Not taxable if within limits.
Gratuity
4.81% of basic. Part of CTC, not part of gross salary or take-home.
NPS - Employee (80CCD(1))
Counts toward 80C ₹1.5L limit (old regime).
Show All 17 Terms
NPS - Employee Extra (80CCD(1B))
Additional ₹50k deduction for employee NPS (old regime only).
NPS - Employer (80CCD(2))
Max 10% (private) or 14% (govt). Deduction in BOTH regimes. NOT deducted from in-hand.
Standard Deduction
Auto deduction from salary: ₹50k (old) / ₹75k (new).
Section 80C
Tax deductions up to ₹1.5L: EPF, PPF, ELSS, life insurance, tuition fees, employee NPS.
Section 80D
Health insurance premium deduction (self + family).
Section 24(b)
Home loan interest deduction, max ₹2L (old regime, self-occupied property).
Professional Tax
State-level tax (e.g., ₹2,500/year). Deducted monthly from salary.
Section 87A Rebate
Zero tax if taxable income ≤ ₹5L (old) / ≤ ₹12L (new).
Cess (4%)
Health & Education Cess = 4% of income tax amount.

💡Quick Reference

Basic:35-50% of CTC
Employee PF:12% of Basic
Gratuity:4.81% of Basic
Standard Ded.:₹50k / ₹75k
80C Limit:₹1.5 Lakh
80CCD(1B):Extra ₹50k NPS
87A Rebate (New):Up to ₹12L
Metro HRA:50% of Basic

📊Income Tax Slabs FY 2026-27 (AY 2027-28)

✨ New Regime Tax Slabs

Income SlabTax Rate
₹0 - ₹4,00,000Nil
₹4,00,001 - ₹8,00,0005%
₹8,00,001 - ₹12,00,00010%
₹12,00,001 - ₹16,00,00015%
₹16,00,001 - ₹20,00,00020%
₹20,00,001 - ₹24,00,00025%
Above ₹24,00,00030%

* Section 87A rebate: Zero tax if taxable income ≤ ₹12,00,000

📋 Old Regime Tax Slabs (Age < 60)

Income SlabTax Rate
₹0 - ₹2,50,000Nil
₹2,50,001 - ₹5,00,0005%
₹5,00,001 - ₹10,00,00020%
Above ₹10,00,00030%

* Section 87A rebate: Zero tax if taxable income ≤ ₹5,00,000

Senior Citizen (60-80): Nil slab up to ₹3,00,000

Super Senior (80+): Nil slab up to ₹5,00,000

⚡ Surcharge & Cess (FY 2026-27)

Surcharge on Income Tax

Total IncomeSurcharge
Up to ₹50 LakhNil
₹50L - ₹1 Cr10%
₹1 Cr - ₹2 Cr15%
₹2 Cr - ₹5 Cr25%
Above ₹5 Cr (Old)37%
Above ₹2 Cr (New)25% max

* Marginal relief ensures surcharge doesn't exceed extra income over threshold

Health & Education Cess

Cess Rate4%

Cess = 4% × (Income Tax + Surcharge)

Applied on tax amount, not on income. Funds primary health and education initiatives.

Tax Calculation Formula

1. Tax on Slabs

2. − Rebate u/s 87A

3. + Surcharge (if applicable)

4. + Cess (4%)

= Total Tax Payable

💬Frequently Asked Questions

Q1. How to calculate in-hand salary from CTC in India?

In-hand salary = CTC - (Employer PF + Gratuity) - Employee PF - Professional Tax - Income Tax. Use our calculator to get accurate monthly take-home based on your CTC, deductions, and tax regime choice.

Q2. Which is better - Old or New tax regime in 2025-26?

New regime offers lower tax rates and higher standard deduction (₹75,000) but no exemptions. Old regime allows 80C (₹1.5L), 80D, HRA, NPS (₹50k extra). Choose based on your investments and deductions - our calculator compares both automatically.

Q3. How does NPS reduce tax in both regimes?

Employee NPS counts toward 80C (₹1.5L) + additional ₹50k under 80CCD(1B) in old regime. Employer NPS (up to 10% of basic) reduces taxable income in BOTH regimes without reducing take-home salary.

Q4. What is Section 87A tax rebate?

Section 87A provides full tax rebate if taxable income is ≤ ₹5 lakh (old regime) or ≤ ₹12 lakh (new regime). This means zero tax payable within these limits.

Q5. How is HRA exemption calculated?

HRA exemption (old regime only) = Minimum of: (a) Actual HRA received, (b) Rent paid - 10% of basic, (c) 50% of basic (metro) or 40% (non-metro). Metro cities: Delhi, Mumbai, Kolkata, Chennai.

Q6. What percentage of CTC should be Basic salary?

Typically 35-50% of CTC. Higher basic means higher PF, gratuity, and HRA benefits but lower take-home. Our calculator lets you customize this percentage for accurate results.

Q7. Does employer PF and NPS reduce take-home salary?

No. Employer PF and Employer NPS are part of CTC but NOT deducted from monthly salary. They reduce taxable income but don't affect your in-hand pay. Only employee PF is deducted monthly.

Q8. Does bonus increase my monthly take-home salary?

No. Bonus is a one-time payment that increases your annual tax, which is then spread across 12 months as higher TDS. Your monthly salary remains the same. The calculator shows separate 'Bonus Take-Home' after deducting the incremental tax.

Q9. Can I switch between Old and New tax regime every year?

Yes, salaried individuals can switch between tax regimes every financial year while filing ITR. However, if you have business income, you can switch only once in your lifetime.

Q10. What is variable pay and how does it affect my take-home salary?

Variable pay is performance-linked compensation (monthly, quarterly, or annual) that's fully taxable in the year received. It increases your annual tax and monthly TDS but does NOT increase your fixed monthly salary. The calculator shows separate take-home for variable pay after deducting incremental tax.

Q11. What is surcharge and when is it applicable on my income?

Surcharge is an additional tax on high-income earners: 10% for ₹50L-₹1Cr, 15% for ₹1Cr-₹2Cr, 25% for ₹2Cr-₹5Cr, and 37% above ₹5Cr. Marginal relief ensures the extra tax doesn't exceed the income above the threshold. Our calculator computes this automatically.

🔗Official & Trusted Tax Resources

⚖️New Regime vs Old Regime (FY 2026-27)

✨ New Regime

  • Lower tax rates (5% starts from ₹4L)
  • Standard deduction: ₹75,000
  • 87A rebate up to ₹12L income
  • Employer NPS (80CCD2) allowed
  • No HRA, 80C, 80D exemptions

📋 Old Regime

  • HRA exemption available
  • 80C: Up to ₹1.5L (PF, PPF, ELSS)
  • 80D: Health insurance deduction
  • 24(b): Home loan interest ₹2L
  • Higher tax rates

💡Tips to Maximize Take-Home Salary

  • Compare both regimes - the better choice depends on your deductions
  • If paying rent in metro cities, Old Regime HRA exemption can be significant
  • Maximize 80C if choosing Old Regime (PF counts towards ₹1.5L limit)
  • Consider employer NPS for 80CCD(2) benefit in both regimes
  • Higher Basic = Higher PF (good for retirement but lower take-home)
  • Use our calculator to run "what-if" scenarios with different salary structures

Disclaimer: This calculator provides estimated salary results based on FY 2025-26 tax rules. Actual take-home may vary based on your complete salary structure, additional benefits, and latest Income Tax Department notifications. Please verify with your HR or a tax professional.