Enter your CTC and get your exact monthly take-home salary, full salary breakup, and a side-by-side old vs new tax regime comparison — instantly.
Every payslip has multiple components. Understanding each one helps you know exactly why your in-hand salary is less than your CTC.
| Component | Typical % | In Your In-Hand? | Notes |
|---|---|---|---|
| Basic Salary | 40–50% of CTC | Yes | Base for PF, HRA, gratuity calculations |
| HRA (House Rent Allowance) | 40–50% of Basic | Yes | Partially or fully tax-exempt if you pay rent |
| Special / Other Allowance | Remaining balance | Yes | Fully taxable; fills the gap to reach CTC |
| Employee PF | 12% of Basic | No — Deducted | Goes to your EPF account; accessible on exit |
| Professional Tax | ₹100–₹200/month | No — Deducted | State-specific; max ₹2,500/year |
| Income Tax (TDS) | Depends on income | No — Deducted | Employer deducts monthly and deposits with govt |
| Employer PF | 12% of Basic | No — Not In-Hand | Part of CTC; deposited into EPF (3.67%) + EPS (8.33%) |
| Gratuity Provision | ~4.81% of Basic | No — Not In-Hand | Payable only after 5 years of service |
| Variable / Bonus Pay | Varies | Periodic | Paid quarterly or annually; part of CTC |
The regime you choose directly affects your monthly in-hand salary. Here's a side-by-side comparison for FY 2025-26.
| Feature | 🆕 New Regime | 📜 Old Regime |
|---|---|---|
| Standard Deduction | ₹75,000 | ₹50,000 |
| Zero Tax Income Limit | Up to ₹12,00,000 (87A rebate) | Up to ₹5,00,000 (87A rebate) |
| Section 80C (PF, ELSS, LIC) | Not Available | Up to ₹1.5 Lakh |
| HRA Exemption | Not Available | Available |
| Home Loan Interest (Sec 24b) | Not Available | Up to ₹2 Lakh |
| NPS Deduction (80CCD) | Employer share only | Employee + Employer |
| Best For | Low deductions or income ≤ ₹12L | High deductions (>₹3.75L) |
| Complexity | Simple | More paperwork |
Understanding the formula helps you verify your payslip and negotiate your salary structure more effectively.
| Step | Description | Amount (Example: ₹10L CTC) |
|---|---|---|
| CTC (Annual) | Your total Cost to Company package | ₹10,00,000 |
| − Employer PF | 12% of Basic (40% of CTC) × 12 months | − ₹57,600 |
| − Gratuity Provision | ~4.81% of Basic salary (annual) | − ₹23,088 |
| = Gross Annual Salary | CTC after removing employer costs | ₹9,19,312 |
| − Employee PF | 12% of Basic × 12 months | − ₹57,600 |
| − Professional Tax | ₹200/month × 12 | − ₹2,400 |
| − Income Tax | New Regime (under ₹12L rebate = ₹0) | − ₹0 |
| = Annual Take-Home | Yearly in-hand salary | ≈ ₹8,59,312 |
| = Monthly In-Hand | Divide annual by 12 | ≈ ₹71,609/month |
Clear answers to the most common questions about in-hand salary, CTC, and tax deductions.