Does this calculator include the latest Standard Deduction of ₹75,000?

Yes. Our algorithm automatically applies the standard deduction of ₹75,000 for the New Tax Regime (and ₹50,000 for Old Regime where applicable) to lower your taxable income.

Why is my Gratuity deducted from my CTC?

Gratuity is a statutory benefit paid only after 5 years of continuous service. Companies consider it a 'cost' and include it in your CTC, but it is not paid monthly.

How can I reduce my TDS legally?

If you use the Old Regime, you can maximize deductions via Section 80C, 80D, and HRA. The New Regime offers lower rates but fewer deductions.

What happens if I have no Professional Tax in my state?

States like Delhi, Haryana, and UP do not charge Professional Tax. Select 'Other/None' in the PT Dropdown to see your higher in-hand salary.

Is Variable Pay included in the calculations?

Variable pay acts like a 'bonus' and is usually taxed when paid. It is best to exclude it from Fixed CTC to see your guaranteed monthly income.

Salary In-Hand Calculator India (2025-26): Calculate Net Take Home Pay

Salary In-Hand Calculator 2025-26: The Truth About Your "CTC"

Congratulations on the job offer! Seeing a big annual package (CTC) like ₹12 Lakhs or ₹20 Lakhs on your offer letter is exciting. But then your first salary credit arrives, and it's much lower than you expected. "Where did the money go?" is the most common question freshers and experienced professionals ask.

Our Salary In-Hand Calculator India demystifies your payslip. By separating the "Paper Money" (CTC) from the "Real Money" (Net Salary), we help you plan your finances accurately for the Financial Year 2025-26.

Why CTC ≠ Take Home Salary?

CTC (Cost to Company) is the total amount an employer spends on you. It includes things you never see in your bank account.

Provident Fund (PF): 12% of your Basic Salary is deducted for your retirement. (Employer contributes too, which is part of CTC).
Gratuity: A benefit you only get after working for 5 years. But companies add it to your annual CTC package.
TDS (Income Tax): The government takes its share before the money reaches you.
Professional Tax: A state-imposed tax (approx ₹200/month) in states like Maharashtra, Karnataka, and Telangana.

*Result: A ₹12 Lakh CTC might only result in ₹75,000 - ₹80,000 monthly take-home, not ₹1 Lakh.*

New Tax Regime vs Old Tax Regime (FY 2025-24)

The budget updates have made the choice tricky. Our calculator supports both.

New Tax Regime (Default)

Pros: Lower tax rates. No need to submit investment proofs. Simple to file.
Cons: You cannot claim HRA, 80C, or 80D deductions.
Best For: People with few investments or salary < ₹15 Lakhs.

*Standard Deduction of ₹75,000 is now available here too!*

Old Tax Regime

Pros: Massive tax saving potential if you have Home Loan, HRA, PPF, LIC, etc.
Cons: Higher tax rates if you don't invest. Paperwork heavy.
Best For: High earners with significant deductions (> ₹3 Lakhs).

Detailed Salary Component Breakdown

1. Basic Salary

This is the core of your salary, usually 40% to 50% of your CTC. It is fully taxable. Your PF contribution is calculated based on this (12% of Basic).

2. HRA (House Rent Allowance)

Usually 40% (non-metro) or 50% (metro) of Basic. In the Old Regime, you can claim tax exemption on HRA if you live in a rented house. In the New Regime, HRA is fully taxable.

3. Special Allowance

A "filler" component used by companies to match the CTC figure. It is fully taxable despite its fancy name.

4. Professional Tax (PT)

A state-level tax deducted from your salary. The maximum is ₹2,500 per year. States like Delhi, Haryana, UP, and Rajasthan do not deduct PT. States like Karnataka, Maharashtra, West Bengal, and Tamil Nadu do deduct PT.

How to Use This Calculator Effectively

Input CTC: Enter the Annual CTC mentioned in your offer letter.
Check Bonus: If your offer says "Variable Pay: ₹1 Lakh", enter that in the "Bonus/Variable" field. This calculator removes it from the *monthly* calculation because you usually get it only once a year.
Select State: This is crucial for Professional Tax. If you work in Noida (UP) or Gurgaon (Haryana), select "Other/None" to save ₹200/month in the calculation.
Compare Regimes: Toggle between New and Old to see which one puts more cash in your pocket today.

Common Questions About Salary Calculation

My In-Hand is lower than the calculator shows. Why?

Check if your company deducts for:
- Food Coupons (Sodexo)
- Transport / Cab Facility
- Group Medical Insurance Premium
- VPF (Voluntary Provident Fund)
These are voluntary deductions that our standard calculator does not include by default.

Is Gratuity deducted every month?

No. Gratuity is part of CTC but not deducted from your monthly slip. It is simply moneys accrued by the company to pay you when you leave (after 5 years). It artificially inflates your CTC.