In-Hand Salary Calculator (India)

Based on default New Tax Regime FY 2024-25

Estimate your monthly take-home salary based on your Annual CTC.

Estimated Salary Breakdown:

Annual CTC:
Estimated Gross Annual Salary:
(-) Employee EPF (Est. 12% of Basic):
(-) Professional Tax (Est. Annual):
(-) Income Tax (New Regime, Est.):
Estimated Net Annual Salary:
Estimated Monthly In-Hand Salary:

CTC includes components like employer's PF contribution which aren't part of your in-hand pay. The New Tax Regime offers lower rates but fewer deductions compared to the Old Regime.

Did You Know? India has progressive tax slabs – higher income is taxed at higher rates.

Disclaimer: This is a simplified estimate using the default New Tax Regime and standard assumptions. It excludes HRA, LTA, specific investments, state PT variations, etc. Consult your payslip or HR/finance expert for exact figures.

Salary Calculator Overview (India)

Purpose:

To provide an approximate monthly in-hand salary based on Annual CTC for employees in India, considering major deductions under the default New Tax Regime (FY 2024-25).

Input:

Annual CTC (₹)

Output:

Estimated Monthly In-Hand Salary (₹) and breakdown of estimated annual deductions (EPF, PT, Income Tax).

Methodology (Simplified):

1. Estimate Gross Salary: Assumes Gross ≈ CTC - Employer's EPF (12% of Basic). Basic is estimated as 45% of CTC.

2. Calculate Deductions:
- Employee EPF: 12% of estimated Basic Salary.
- Professional Tax: Fixed estimate (₹2400 annually).
- Taxable Income: Gross Salary - Std Deduction (₹50k) - PT.
- Income Tax: Apply FY 2024-25 New Regime slabs & Sec 87A rebate to Taxable Income + 4% Cess.

3. Calculate Net Salary: Gross Salary - Employee EPF - PT - Income Tax.

4. Monthly Salary: Net Annual Salary / 12.

Note: Highly simplified. Does not include allowances, reimbursements, other deductions, state PT variations, or the Old Tax Regime.

Understanding Salary Components in India 🇮🇳

CTC vs Gross vs Net Salary

CTC (Cost to Company): Total cost for the employer (Your Salary + Employer PF + Gratuity + Insurance etc.).
Gross Salary: Your salary before deductions (Basic + HRA + Allowances). Usually CTC minus employer's PF & Gratuity.
Net (In-Hand) Salary: Gross Salary minus deductions like Employee PF, Professional Tax, and Income Tax. This is what you receive monthly.

Common Deductions

EPF (Employee Provident Fund): Mandatory retirement saving (12% of Basic, matched by employer).
PT (Professional Tax): State-level tax (typically ₹150-₹200/month for most salary brackets).
Income Tax (TDS): Deducted based on projected annual income and chosen tax regime (Old vs New).
Other Deductions: Could include voluntary contributions (VPF), loan repayments, etc.

This calculator uses the New Tax Regime (default from FY 2023-24) which has lower tax rates but fewer exemptions/deductions compared to the Old Regime.

Frequently Asked Questions

CTC is the total annual cost an employer incurs for an employee. It includes gross salary (Basic, HRA, Allowances) plus contributions like Employer's EPF share and sometimes Gratuity or Insurance premiums. In-hand salary is what you receive after deductions from your gross salary.

This calculator assumes the standard employee contribution of 12% of your Basic Salary. Basic Salary is often estimated as 40-50% of CTC. We use 45% for this estimation. Note: EPF contributions are usually capped based on a statutory wage ceiling for calculation, but higher voluntary contributions are possible.

This calculator uses the default New Tax Regime slabs for FY 2024-25 (AY 2025-26): Up to ₹3L: Nil; ₹3L-₹6L: 5%; ₹6L-₹9L: 10%; ₹9L-₹12L: 15%; ₹12L-₹15L: 20%; Above ₹15L: 30%. A standard deduction of ₹50,000 is applied. Rebate under Sec 87A makes income up to ₹7L effectively tax-free under this regime. Cess (4%) is added to the calculated tax. This is a simplified calculation.

Professional Tax is levied by State Governments in India and rates vary. This calculator deducts a *placeholder* average amount (e.g., ₹200/month or ₹2400/year). Your actual PT might differ based on your salary and state.

<b>No.</b> This provides an *estimate* based on common structures and the default tax regime. It does not account for specific allowances (HRA, LTA), other deductions (Sec 80C, 80D under Old Regime), varying Basic Salary percentages, state-specific PT, or employer-specific policies. For exact figures, consult your payslip or a financial advisor.

In-Hand Salary Calculator (India)

Estimated Salary Breakdown:

Salary Calculator Overview (India)

Purpose:

Input:

Output:

Methodology (Simplified):

Understanding Salary Components in India 🇮🇳

CTC vs Gross vs Net Salary

Common Deductions

Frequently Asked Questions

What is CTC (Cost to Company)?

How is Employee Provident Fund (EPF) calculated here?

How is Income Tax calculated (New Regime)?

What about Professional Tax (PT)?

Is this calculation exact?

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