How to Use Salary Calculator

Q: Should I choose the old or new tax regime?

It depends on your deductions. If your 80C investments, HRA, and other deductions exceed the tax benefit from the new regime's lower rates, the old regime saves more. The calculator compares both.

Key Takeaways

Cost to Company — the total annual expense an employer incurs for your employment, including your salary, employer PF contribution, gratuity provision, and any other benefits

CTC includes employer PF (12% of Basic), gratuity provision (~4

₹50,000 per year is available as a standard deduction from gross salary income under both the old and new tax regimes

It depends on your deductions

What is Salary Calculator?

Salary Calculator breaks down a CTC (Cost to Company) figure into its individual components — Basic, HRA, PF, allowances — and calculates the monthly and annual in-hand (take-home) salary after all deductions under both the old and new income tax regimes.

The gap between CTC and in-hand salary is typically 20–35% for most salaried employees in India, depending on salary level and tax regime chosen.

Salary Structure Components

Basic & HRA

Basic salary is the core component. HRA (House Rent Allowance) is partially or fully exempt from tax if you pay rent.

PF Contributions

Both employee (12% of Basic) and employer (12% of Basic) contribute to Provident Fund. Employee PF is deducted from your salary.

Income Tax

Calculated on net taxable income after standard deduction. Compare old regime (deductions) vs new regime (lower slabs).

Enter CTC

Enter your annual CTC. The calculator suggests a standard component split.

Adjust components

Modify Basic, HRA, and allowances to match your actual offer letter breakdown.

Add declarations

Enter HRA exemption (if applicable), 80C investments, and other declared deductions.

Compare regimes

See tax computed under old and new regime side by side — pick the lower one.

Get in-hand

Monthly and annual in-hand salary shown after all deductions.

Typical Salary Deductions

Deduction	Amount
Employee PF	12% of Basic
Income Tax (TDS)	Per slab, monthly
Professional Tax	₹200/month (state-dependent)
ESI (if applicable)	0.75% of gross (if gross < ₹21,000/month)

Tips & Common Mistakes

HRA exemption requires rent receipts. If you’re claiming HRA exemption, keep rent receipts handy. If annual rent exceeds ₹1 lakh, the landlord’s PAN is also required.

Employer PF is not your take-home. It goes to your EPF account — accessible only on exit from employment or at retirement. Don’t count it as monthly spendable income.

HRA Calculator — compute HRA exemption
Gratuity Calculator — calculate gratuity entitlement
PPF Calculator — plan 80C investments

Frequently Asked Questions

What is CTC?

Cost to Company — the total annual expense an employer incurs for your employment, including your salary, employer PF contribution, gratuity provision, and any other benefits.

Why is my in-hand salary so much less than CTC?

CTC includes employer PF (12% of Basic), gratuity provision (~4.8% of Basic), and possibly other non-cash benefits. These are paid by the employer but not received as cash by you. Employee PF and income tax further reduce the cash you receive.

What is the standard deduction for salaried employees?

₹50,000 per year is available as a standard deduction from gross salary income under both the old and new tax regimes.

Should I choose the old or new tax regime?