How is In-Hand Salary Calculated?
Your CTC (Cost to Company) is not what hits your bank account. Companies deduct mandatory contributions like Provident Fund (PF), state-wise Professional Tax (PT), and Income Tax at source (TDS) before disbursing the salary.
New vs. Old Regime?
The New Regime is the default from FY 2023-24. It offers lower tax rates but disallows most common deductions like 80C, 80D, and HRA. The Old Regime has higher tax rates but allows you to claim these deductions to lower your taxable income. This tool makes standard assumptions for quick estimates.
Understanding Your Salary Breakdown
In India, your CTC typically includes basic salary, HRA, conveyance allowance, LTA, and other benefits. The in-hand calculation considers mandatory deductions like PF (12% of basic), professional tax (varies by state, avg. ₹2,400/yr), and income tax based on the regime chosen.
Tax Slabs for FY 2024-25 (AY 2025-26)
New Regime (Default): Standard Deduction of ₹50,000. Rebate on income up to ₹7L.
- Up to ₹3L: 0%
- ₹3L - ₹6L: 5%
- ₹6L - ₹9L: 10%
- ₹9L - ₹12L: 15%
- ₹12L - ₹15L: 20%
- Above ₹15L: 30%
Old Regime: Standard Deduction of ₹50,000. Allows deductions under 80C, HRA etc.
- Up to ₹2.5L: 0%
- ₹2.5L - ₹5L: 5%
- ₹5L - ₹10L: 20%
- Above ₹10L: 30%
Why Use This Calculator?
This free tool helps you quickly estimate your take-home pay before accepting job offers, which is crucial for salary negotiations and financial planning. It's especially useful for comparing offers under different tax regimes.