Salary In-Hand Calculator
Calculate monthly take-home pay from CTC with New vs Old Tax Regimes, EPF, and deductions.
How to use this tool & FAQs
Click any question below to expand its guide and answer
Understanding CTC vs Gross vs In-Hand Salary
Your CTC (Cost to Company) represents the complete financial expenditure an employer undertakes for your employment. It does not equal the money credited into your bank account each month.
1. Cost to Company (CTC)
CTC includes direct components (Basic Salary, Dearness Allowance, HRA, Special Allowance) as well as indirect employer contributions (Employer PF 12%, Gratuity, Health Insurance Premiums, and Performance Bonuses).
2. Gross Salary
Gross Salary is the total amount earned before statutory employee deductions. When the employer's Provident Fund contribution is factored inside the CTC, Gross Salary = CTC − Employer EPF contribution.
3. Net In-Hand / Take-Home Salary
In-Hand Salary is the actual disposable income transferred to your salary account every month after all mandatory deductions:
- Net Monthly In-Hand = Monthly Gross Salary − (Employee EPF + Income Tax TDS + Professional Tax)
Income Tax Slabs (New vs Old Tax Regime)
India currently offers two personal income tax regimes for salaried individuals:
- New Tax Regime (Default, updated in Budget 2024-25): Features a standard deduction of ₹75,000 and lowered tax slabs (0% up to ₹3L, 5% for ₹3L–₹7L, 10% for ₹7L–₹10L, 15% for ₹10L–₹12L, 20% for ₹12L–₹15L, and 30% above ₹15L). Thanks to Section 87A rebate, any salaried individual earning up to ₹7,75,000 pays ₹0 tax!
- Old Tax Regime: Features a ₹50,000 standard deduction but allows itemized tax deductions such as Section 80C (PPF, EPF, ELSS up to ₹1.5L), Section 80D (Mediclaim), and House Rent Allowance (HRA) exemptions. It is beneficial if your total exemptions exceed ₹3.75 Lakh.
Frequently Asked Questions
Is EPF deducted from both employee and employer?
Yes. The statutory Employee Provident Fund contribution is 12% of your Basic Salary + DA. The employee contributes 12% (deducted from your monthly pay), and the employer matches 12% (typically part of your overall CTC package).
What is Professional Tax?
Professional Tax is a state-level tax levied on salaried employees by state governments in India (such as Maharashtra, Karnataka, Telangana, West Bengal). It is usually ₹200/month (₹2,400 to ₹2,500/year).