In-Hand Salary Calculator India 2026
Free In-Hand Salary Calculator — enter your annual CTC or Gross Salary and instantly see your monthly take-home pay after EPF, Professional Tax, Gratuity, and Income Tax (TDS). Compare Old vs New Tax Regime side-by-side. Updated for FY 2025-26 Union Budget with ₹12.75 Lakh zero-tax threshold under Section 87A, ₹75,000 standard deduction, and state-wise Professional Tax rates.
In-Hand Salary (Monthly)
₹93,795
Gross Salary
₹95,795
Total Deductions
₹2,000
Salary Components (Monthly)
Basic Salary: ₹50,000
HRA: ₹25,000
Special Allowance: ₹20,795
Deductions
Income Tax: −₹0
EPF (Employee): −₹1,800
Professional Tax: −₹200
Hidden Employer Costs (Part of CTC, not in hand)
EPF (Employer): ₹1,800
Gratuity Configured: ₹2,405
Tax Impact: Old vs New Regime
| Metric (Annual) | New Regime | Old Regime |
|---|---|---|
| Taxable Income | ₹10.75 L | ₹7.20 L |
| Income Tax (Total) | ₹0 | ₹58,664 |
| In-Hand Salary | ₹11.26 L ✓ | ₹10.67 L |
💡 You take home ₹58,664 more per year with the new regime.
What Is In-Hand Salary?
In-Hand Salary (also called Take-Home Salary, Net Salary, or Salary After Tax) is the actual amount credited to your bank account every month after all deductions — income tax, EPF, professional tax, and other statutory deductions — are subtracted from your gross salary. This is the money you can actually spend.
Where: Gross Salary = CTC − Employer EPF − Gratuity − Employer Insurance
CTC vs Gross Salary vs In-Hand Salary
| Component | What It Includes | Formula |
|---|---|---|
| CTC (Cost to Company) | Total annual cost the employer spends on you | Gross Salary + Employer EPF + Gratuity + Insurance |
| Gross Salary | Total earnings before your deductions | CTC − Employer EPF − Gratuity − Employer Insurance |
| Net/In-Hand Salary | Actual monthly bank credit | Gross Salary − Employee EPF − Professional Tax − Income Tax (TDS) |
Key insight: On a ₹10 Lakh CTC, your Gross Salary is approximately ₹9.1 Lakh, and your In-Hand Salary is approximately ₹70,000–73,000/month — a 15–20% gap between CTC and what you actually receive.
Salary Calculation Formulas
Understanding the key formulas is essential before using the calculator:
| Formula | Calculation |
|---|---|
| Take-Home Salary | Gross Salary − (Employee EPF + Professional Tax + Income Tax TDS) |
| Gross Salary | CTC − Employer EPF − Gratuity − Employer Insurance |
| Taxable Income (New Regime) | Gross − Standard Deduction (₹75,000) |
| Taxable Income (Old Regime) | Gross − EPF − HRA Exemption − LTA − 80C − 80D − Standard Deduction |
| Gratuity | (Basic + DA) × 15 × Years of Service ÷ 26 |
Components of Your Salary Slip — Complete Breakdown
| Component | Typical % | Taxable? | Purpose |
|---|---|---|---|
| Basic Salary | 40–50% of CTC | ✅ Fully taxable | Foundation — HRA, EPF, Gratuity all depend on this |
| House Rent Allowance (HRA) | 50% of Basic (metro) / 40% (non-metro) | Partially exempt (Old Regime only) | Rent expenses — exemption under Sec 10(13A) |
| Special Allowance | Balance after all components | ✅ Fully taxable | Catchall — no tax exemption available |
| Leave Travel Allowance (LTA) | Varies | Exempt (Old Regime, 2 trips per 4-year block) | Domestic travel — only fare, not hotel or food |
| Bonus / Performance Pay | 5–20% of CTC | ✅ Fully taxable | Annual or quarterly performance linked |
| Employee EPF (12% of Basic) | ~6% of CTC | Exempt (80C, up to ₹1.5L) | Retirement savings — mandated by law |
| Employer EPF (12% of Basic) | ~6% of CTC | Exempt at deposit | Employer match — goes to your PF account |
| Gratuity | 4.81% of Basic | Exempt up to ₹20L after 5 years | Lump sum after 5 years of service |
| Professional Tax | ₹200/month (most states) | Deductible from income (Sec 16(iii)) | State government levy — max ₹2,500/year |
Income Tax Slabs — FY 2025-26 (AY 2026-27)
New Tax Regime (Default) — Updated Union Budget 2025
| Taxable Income (₹) | Tax Rate |
|---|---|
| 0 – 4,00,000 | NIL |
| 4,00,001 – 8,00,000 | 5% |
| 8,00,001 – 12,00,000 | 10% |
| 12,00,001 – 16,00,000 | 15% |
| 16,00,001 – 20,00,000 | 20% |
| 20,00,001 – 24,00,000 | 25% |
| Above 24,00,000 | 30% |
Section 87A Rebate: Income up to ₹12 Lakh is effectively tax-free. With ₹75,000 standard deduction, salaried employees earning up to ₹12.75 Lakh pay zero tax under the New Regime. Use our Income Tax Calculator to model both regimes.
Old Tax Regime
| Taxable Income (₹) | Tax Rate |
|---|---|
| 0 – 2,50,000 | NIL |
| 2,50,001 – 5,00,000 | 5% |
| 5,00,001 – 10,00,000 | 20% |
| Above 10,00,000 | 30% |
Old vs New Tax Regime — Which Gives Higher Take-Home?
| Feature | New Regime (Default) | Old Regime |
|---|---|---|
| Standard Deduction | ₹75,000 | ₹50,000 |
| Section 80C (₹1.5L) | ❌ Not allowed | ✅ Allowed |
| HRA Exemption | ❌ Not allowed | ✅ Allowed |
| Section 80D (Health Insurance) | ❌ Not allowed | ✅ Up to ₹1 Lakh |
| Home Loan Interest (Sec 24b) | ❌ Not allowed | ✅ Up to ₹2 Lakh |
| NPS — Employer (80CCD2) | ✅ Allowed | ✅ Allowed |
| Section 87A Rebate | Up to ₹12L income | Up to ₹5L income |
| Tax-Free Income Limit | ₹12.75L (with std deduction) | ~₹5.5L (with ₹50K std deduction + 80C) |
Rule of thumb: If your total deductions (80C + 80D + HRA + home loan interest) exceed ₹3.75 Lakh, the Old Regime may give you a higher take-home salary. Below that threshold, the New Regime is almost always better.
Worked Example — ₹10 Lakh CTC Breakdown
| Component | Annual (₹) | Monthly (₹) |
|---|---|---|
| Basic Salary (50% of CTC) | 5,00,000 | 41,667 |
| HRA (50% of Basic — Metro) | 2,50,000 | 20,833 |
| Special Allowance | 1,61,100 | 13,425 |
| Gross Salary | 9,11,100 | 75,925 |
| Less: Employee EPF (12% of Basic) | −60,000 | −5,000 |
| Less: Professional Tax | −2,400 | −200 |
| Less: Income Tax (New Regime) | −10,400 | −867 |
| Take-Home Salary (In-Hand) | 8,38,300 | ~69,858 |
Hidden Employer Costs (part of CTC, never in your bank): Employer EPF: ₹60,000 | Gratuity: ₹28,900
Worked Example — ₹15 Lakh CTC Breakdown
| Component | Annual (₹) | Monthly (₹) |
|---|---|---|
| Basic Salary (40% of CTC) | 6,00,000 | 50,000 |
| HRA (50% of Basic — metro) | 3,00,000 | 25,000 |
| Special Allowance | 2,06,400 | 17,200 |
| LTA | 24,000 | 2,000 |
| Gross Salary | 11,30,400 | 94,200 |
| Less: Employee EPF (12% of Basic) | −72,000 | −6,000 |
| Less: Professional Tax | −2,400 | −200 |
| Less: Income Tax (New Regime) | −56,160 | −4,680 |
| Take-Home Salary (In-Hand) | 9,99,840 | ~83,320 |
What you don't see in your bank: Employer EPF (₹72,000/year) + Gratuity (₹28,800/year) + Health Insurance (~₹10,000/year) — all part of CTC but never credited to your account.
Worked Example — ₹25 Lakh CTC Breakdown
| Component | Annual (₹) | Monthly (₹) |
|---|---|---|
| Basic Salary (50% of CTC) | 12,50,000 | 1,04,167 |
| HRA (50% of Basic) | 6,25,000 | 52,083 |
| Special Allowance | 3,36,350 | 28,029 |
| Gross Salary | 22,11,350 | 1,84,279 |
| Less: Employee EPF (12% of Basic) | −1,50,000 | −12,500 |
| Less: Professional Tax | −2,400 | −200 |
| Less: Income Tax (New Regime) | −3,24,480 | −27,040 |
| Take-Home Salary (In-Hand) | 17,34,470 | ~1,44,539 |
At ₹25 LPA, your effective tax rate is approximately 13%. Invest the monthly surplus using our SIP Calculator — even ₹20,000/month SIP at 12% returns for 20 years creates a corpus of ₹1.99 Crore.
CTC to In-Hand Salary — Quick Reference Chart (India)
Quick reference table for approximate in-hand salary at various CTC levels. Assumptions: New Tax Regime FY 2025-26, Basic at 40–50% of CTC, Metro city HRA, 12% EPF on basic, Professional Tax ₹200/month.
| CTC (LPA) | Monthly In-Hand (₹) | Yearly In-Hand (₹) | Effective Tax Rate |
|---|---|---|---|
| 3 LPA | 22,400 – 23,200 | 2,69,000 – 2,78,000 | 0% |
| 4 LPA | 29,800 – 30,800 | 3,58,000 – 3,70,000 | 0% |
| 5 LPA | 37,100 – 38,300 | 4,45,000 – 4,60,000 | 0% |
| 6 LPA | 44,100 – 45,600 | 5,29,000 – 5,47,000 | 0% |
| 7 LPA | 51,500 – 53,000 | 6,18,000 – 6,36,000 | 0% |
| 8 LPA | 58,200 – 60,000 | 6,98,000 – 7,20,000 | 0% |
| 9 LPA | 64,000 – 66,000 | 7,68,000 – 7,92,000 | 0% |
| 10 LPA | 69,000 – 72,000 | 8,28,000 – 8,64,000 | ~1% |
| 12 LPA | 82,000 – 86,000 | 9,84,000 – 10,32,000 | ~0.5% |
| 15 LPA | 99,000 – 1,04,000 | 11,88,000 – 12,48,000 | ~3.7% |
| 18 LPA | 1,14,000 – 1,20,000 | 13,68,000 – 14,40,000 | ~6.5% |
| 20 LPA | 1,24,000 – 1,31,000 | 14,88,000 – 15,72,000 | ~8.5% |
| 22 LPA | 1,34,000 – 1,42,000 | 16,08,000 – 17,04,000 | ~10% |
| 25 LPA | 1,49,000 – 1,58,000 | 17,88,000 – 18,96,000 | ~13% |
| 28 LPA | 1,63,000 – 1,73,000 | 19,56,000 – 20,76,000 | ~15% |
| 30 LPA | 1,73,000 – 1,83,000 | 20,76,000 – 21,96,000 | ~16.5% |
| 35 LPA | 1,97,000 – 2,09,000 | 23,64,000 – 25,08,000 | ~19% |
| 40 LPA | 2,21,000 – 2,34,000 | 26,52,000 – 28,08,000 | ~21% |
| 45 LPA | 2,44,000 – 2,59,000 | 29,28,000 – 31,08,000 | ~22% |
| 50 LPA | 2,67,000 – 2,84,000 | 32,04,000 – 34,08,000 | ~23% |
Note: Ranges account for variations in Basic Salary percentage (40–50%), HRA rules, and employer-specific allowances. Actual take-home may vary based on your company's salary structure and the tax regime you choose.
How EPF Affects Your Take-Home Salary
EPF is often the largest single deduction from your salary — even more than income tax at lower CTC levels:
| CTC | Basic (40%) | Employee EPF (12%) | Employer EPF (12%) | Total EPF Deduction from CTC |
|---|---|---|---|---|
| ₹10L | ₹4,00,000 | ₹48,000 | ₹48,000 | ₹96,000 (9.6% of CTC) |
| ₹15L | ₹6,00,000 | ₹72,000 | ₹72,000 | ₹1,44,000 (9.6% of CTC) |
| ₹25L | ₹10,00,000 | ₹1,20,000 | ₹1,20,000 | ₹2,40,000 (9.6% of CTC) |
EPF is not lost money: It earns 8.25% interest (FY 2024-25) tax-free and builds into a substantial retirement corpus. ₹48,000/year EPF at 8.25% for 30 years accumulates to approximately ₹60 Lakh. Use our Retirement Corpus Calculator to project your total retirement wealth including EPF.
Professional Tax — State-Wise Rates (2026)
| State | Monthly Deduction | Annual Maximum |
|---|---|---|
| Maharashtra | ₹200 (₹300 in Feb) | ₹2,500 |
| Karnataka | ₹200 | ₹2,400 |
| West Bengal | ₹150–200 | ₹2,500 |
| Tamil Nadu | Nil (no PT) | ₹0 |
| Telangana | ₹200 | ₹2,500 |
| Gujarat | ₹200 | ₹2,400 |
| Andhra Pradesh | ₹150–200 | ₹2,500 |
| Rajasthan | Nil (no PT) | ₹0 |
| Delhi | Nil (no PT) | ₹0 |
| Uttar Pradesh | Nil (no PT) | ₹0 |
Professional Tax is deductible from your taxable income under Section 16(iii) in both Old and New Tax Regimes — so while it reduces your monthly take-home by ₹200, it also reduces your tax liability slightly.
How to Maximize Your Take-Home Salary
- Choose the right tax regime: Use our Income Tax Calculator to compare both regimes at your CTC level. Under ₹15L with no major deductions → New Regime wins.
- Cap EPF at statutory minimum: Ask HR to limit EPF deduction to 12% of ₹15,000 (₹1,800/month instead of 12% of full Basic). This increases monthly in-hand but reduces retirement savings.
- Restructure salary for HRA (Old Regime): If paying rent in a metro, ensure HRA is 50% of Basic. The tax exemption can save ₹50,000–₹1 Lakh/year.
- Claim meal coupons / food allowance: Up to ₹50/meal (₹26,400/year) is tax-free if provided through employer-issued meal cards.
- Maximize NPS employer contribution: Employer NPS under 80CCD(2) is deductible in BOTH regimes — up to 14% of Basic for govt / 10% for private.
- Invest wisely: Start a SIP with your first salary — even ₹5,000/month SIP growing at 12% for 25 years creates ₹1 Crore+ corpus.
LPA Full Form & Common Indian Salary Terms
| Term | Full Form | Meaning |
|---|---|---|
| LPA | Lakh Per Annum | Annual salary in lakhs (₹1 Lakh = ₹1,00,000) |
| CTC | Cost to Company | Total annual cost including employer EPF, gratuity, insurance |
| DA | Dearness Allowance | Inflation-linked component — common in govt, rare in private |
| HRA | House Rent Allowance | Tax-exempt rent component under Section 10(13A) — Old Regime only |
| TDS | Tax Deducted at Source | Monthly income tax deduction by employer under Section 192 |
| EPF | Employee Provident Fund | 12% mandatory retirement savings — 8.25% tax-free interest |
| PT | Professional Tax | State-level tax — max ₹2,500/year — Section 16(iii) deductible |
| ESI | Employees' State Insurance | Health insurance for employees earning ≤₹21,000/month gross |