Salary After Tax Calculator – Net Pay India
Calculate your net take-home salary after income tax, EPF, professional tax, and other deductions for FY 2025-26. See the exact monthly amount credited to your bank.
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.
💡 Understanding Salary After Tax Deductions
Your Cost to Company (CTC) is never the amount credited to your bank account. Significant portions are deducted for statutory compliance and taxes before you receive your 'In-Hand' or 'Net' salary.
First, Employer EPF and Gratuity are removed from the CTC to arrive at your Gross Salary. From the Gross Salary, Employee EPF (typically 12% of basic), Professional Tax (state-dependent), and Income Tax (TDS) based on your chosen regime are deducted. The final remaining amount is your Salary After Tax.
What Is Salary After Tax?
Salary After Tax (also called Take-Home Salary, In-Hand Salary, or Net Salary) 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.
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.
Components of Your Salary — 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) | Rent expenses (exemption under Sec 10(13A)) |
| Special Allowance | Balance after all components | ✅ Fully taxable | Catchall — covers food, internet, books, etc. |
| 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 at withdrawal after 5 years) | Lump sum after 5 years of service |
| Professional Tax | ₹200/month (most states) | Deductible from income | State government levy — max ₹2,500/year |
| Health Insurance (Group) | ₹5,000-25,000/year | Not taxable benefit | Employer-provided medical coverage |
Worked Example — ₹15 Lakh CTC Breakdown
| Component | Monthly | Annual |
|---|---|---|
| Basic Salary (40% of CTC) | ₹50,000 | ₹6,00,000 |
| HRA (50% of Basic — metro) | ₹25,000 | ₹3,00,000 |
| Special Allowance | ₹17,200 | ₹2,06,400 |
| LTA | ₹2,000 | ₹24,000 |
| Gross Salary | ₹94,200 | ₹11,30,400 |
| Less: Employee EPF (12% of Basic) | −₹6,000 | −₹72,000 |
| Less: Professional Tax | −₹200 | −₹2,400 |
| Less: Income Tax (New Regime) | −₹4,680 | −₹56,160 |
| Salary After Tax (In-Hand) | ₹83,320 | ₹9,99,840 |
What you don't see in your bank: Employer EPF (₹6,000/month = ₹72,000/year) + Gratuity (₹2,400/month = ₹28,800/year) + Health Insurance (~₹800/month) — all part of CTC but never credited to your account.
Income Tax Slabs — FY 2025-26
New Tax Regime (Default)
| Taxable Income (₹) | 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.
Old Tax Regime
| Taxable Income (₹) | 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 (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.
Take-Home Salary at Different CTC Levels (FY 2025-26, New Regime)
| Annual CTC | Monthly CTC | Monthly In-Hand (Approx) | Annual Tax | Effective Tax Rate |
|---|---|---|---|---|
| ₹5 Lakh | ₹41,667 | ₹36,500 | ₹0 (Rebate) | 0% |
| ₹8 Lakh | ₹66,667 | ₹56,800 | ₹0 (Rebate) | 0% |
| ₹12 Lakh | ₹1,00,000 | ₹83,500 | ₹0 (Rebate) | 0% |
| ₹15 Lakh | ₹1,25,000 | ₹99,800 | ₹56,160 | 3.7% |
| ₹25 Lakh | ₹2,08,333 | ₹1,57,500 | ₹3,24,480 | 13% |
| ₹50 Lakh | ₹4,16,667 | ₹2,88,000 | ₹10,81,200 | 21.6% |
Note: These are approximate figures assuming Basic = 40% of CTC, standard EPF deduction, and no additional deductions beyond standard deduction. Your actual numbers may vary based on company salary structure.
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.
Professional Tax — State-Wise Rates
| 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 | ₹2,500 |
| 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 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 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
- Submit rent receipts on time: Missing HRA proof submission means full HRA becomes taxable under Old Regime — a costly mistake