Salary Calculator India 2026 | In-Hand Salary After Tax & PF

Free salary calculator for India. Calculate monthly in-hand salary after tax, PF, and deductions. Compare Old vs New tax regimes for FY 2026-27 accurately.

CTC to In-Hand Take-Home Salary Structure FY 2026-27

Cost to Company (CTC) includes direct pay, statutory deductions, employer contributions, and tax benefits. Here is how annual CTC translates to your monthly take-home salary:

  • Basic Salary: Typically structured at 40% to 50% of gross CTC (forms baseline for PF, Gratuity, and HRA).
  • House Rent Allowance (HRA): 50% of Basic for metro cities (Delhi, Mumbai, Kolkata, Chennai) or 40% for non-metro cities.
  • Employee Provident Fund (EPF): Statutory 12% of Basic deducted from employee salary, matched by 12% employer contribution (3.67% to EPF + 8.33% to EPS).
  • Professional Tax (PT): State government employment levy capped at ₹2,500 annually (typically ₹200/month, ₹300 in February).
  • Standard Deduction: Flat ₹75,000 for salaried employees under New Tax Regime (₹50,000 under Old Tax Regime).
  • Section 87A Zero-Tax Threshold: Under New Regime FY 2026-27, taxable income up to ₹12 Lakh incurs ZERO tax via rebate. Combined with the ₹75,000 standard deduction, salaried income up to ₹12.75 Lakh is 100% tax-free.

Annual CTC to Monthly In-Hand Take-Home Salary Benchmarks (FY 2026-27)

  • ₹3 LPA CTC: Monthly In-hand ≈ ₹22,500 – ₹23,500 (Zero Income Tax, EPF deducted)
  • ₹6 LPA CTC: Monthly In-hand ≈ ₹44,500 – ₹47,000 (Zero Income Tax under New Regime)
  • ₹10 LPA CTC: Monthly In-hand ≈ ₹74,500 – ₹78,000 (Zero Income Tax under ₹12.75L limit)
  • ₹12 LPA CTC: Monthly In-hand ≈ ₹89,000 – ₹93,500 (Zero Income Tax with standard deduction)
  • ₹15 LPA CTC: Monthly In-hand ≈ ₹1,07,000 – ₹1,12,000 (New Regime TDS ≈ ₹10,500/mo)
  • ₹20 LPA CTC: Monthly In-hand ≈ ₹1,38,000 – ₹1,45,000 (New Regime TDS ≈ ₹20,500/mo)
  • ₹25 LPA CTC: Monthly In-hand ≈ ₹1,68,000 – ₹1,76,000 (New Regime TDS ≈ ₹32,000/mo)
  • ₹50 LPA CTC: Monthly In-hand ≈ ₹3,15,000 – ₹3,32,000 (New Regime TDS ≈ ₹94,000/mo)

New Tax Regime vs Old Tax Regime for Salaried Employees

  • New Tax Regime (Default): Lower tax slabs, ₹75,000 standard deduction, zero tax up to ₹12.75 Lakh. No documentation required for 80C, 80D, or HRA.
  • Old Tax Regime: Allows Chapter VI-A deductions — ₹1.5 Lakh under 80C (PPF, ELSS, EPF, Life Insurance), ₹25,000–₹50,000 under 80D (Health Insurance), actual HRA exemption under Section 10(13A), and up to ₹2 Lakh home loan interest under Section 24(b).
  • Breakeven Point: If your total eligible deductions exceed ₹3.75 Lakh to ₹4.25 Lakh, Old Regime may result in lower tax; otherwise, New Regime offers higher net in-hand salary.

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Frequently Asked Questions (FAQs)

What is the difference between CTC and Take-Home (In-Hand) Salary?
Cost to Company (CTC) is the total annual expenditure an employer spends on an employee. It includes employer's EPF contribution (12%), gratuity (4.81%), group medical insurance, and performance bonuses. Take-home salary is the actual net cash transferred to your bank account each month after deducting employee EPF (12%), Professional Tax (PT), and monthly TDS income tax.
Is salary up to ₹12.75 Lakh completely tax-free in FY 2026-27?
Yes. Under the revised New Tax Regime, taxable income up to ₹12,00,000 receives a full tax rebate under Section 87A (tax payable is zero). For salaried professionals, a flat standard deduction of ₹75,000 applies automatically, making gross salary up to ₹12,75,000 completely tax-free.
How is EPF calculated from basic salary?
Employee Provident Fund (EPF) deduction is 12% of your Basic Salary + Dearness Allowance (DA). An equal 12% is contributed by your employer (where 3.67% goes to EPF and 8.33% up to ₹15,000 wage ceiling goes to EPS pension fund). Both earn compounding annual interest set by EPFO.
What is the standard deduction for salaried individuals in FY 2026-27?
The standard deduction is flat ₹75,000 under the New Tax Regime and ₹50,000 under the Old Tax Regime. It requires no bills or investment proofs and is subtracted directly from gross salary before tax calculation.
How is HRA exemption calculated under the Old Tax Regime?
HRA tax exemption under Section 10(13A) is the minimum of: 1) Actual HRA received, 2) Rent paid minus 10% of Basic Salary, or 3) 50% of Basic (metro cities) / 40% of Basic (non-metro cities). HRA exemption is not available under the New Tax Regime.
What is Professional Tax and who deducts it?
Professional Tax (PT) is a state government tax on salaried employees. The maximum statutory limit is ₹2,500 per year, typically deducted at ₹200 per month (and ₹300 in the final month of the financial year in states like Maharashtra, Karnataka, and West Bengal).
Can I switch between New and Old Tax Regime every financial year?
Yes. Salaried employees with income under 'Salaries' can choose between the New and Old Tax Regime every year at the time of filing their Income Tax Return (ITR-1 or ITR-2). Those with business or professional income (ITR-3/ITR-4) can switch only once in a lifetime.
How is Gratuity calculated in CTC?
Gratuity is calculated as: (15 × Last Drawn Basic Salary × Completed Years of Service) ÷ 26. In your CTC breakdown, employers typically allocate 4.81% of your basic salary toward the annual gratuity provisioning pool.