Calculate your actual monthly in-hand salary after tax, EPF, NPS and deductions — Old & New regime comparison included.
Calculate your actual monthly in-hand salary after tax, EPF, NPS and deductions using the latest Indian income tax rules — Old & New regime comparison included.
Everything a salaried professional needs to know about salary structure and take-home pay in India
CTC (Cost to Company) is the total annual amount your employer spends on you — not just your salary. It includes basic pay, all allowances, employer's EPF (12% of Basic), employer's NPS (14% of Basic), gratuity, and other benefits.
A ₹20 LPA CTC does not mean ₹20L lands in your bank. After tax, EPF, and professional tax, your actual in-hand salary is significantly lower.
Your monthly in-hand (take-home) salary is what remains after all deductions from your gross salary:
The gap between CTC and in-hand typically ranges from 20% to 40% depending on your tax slab and deductions.
Employee EPF (12% of Basic Pay) is deducted monthly from your gross salary before you receive it, reducing your in-hand pay. Your employer also contributes 12% — but this is part of your CTC, not deducted from your pay.
In the Old Regime, your employee EPF contribution qualifies for deduction under Section 80C (within the ₹1.5L combined limit), lowering your taxable income.
New Regime — Lower tax slabs, ₹75,000 standard deduction, zero tax if taxable income ≤ ₹12L. No other deductions allowed (except employer NPS). Best if you have minimal tax-saving investments.
Old Regime — Higher slabs but deductions like 80C (₹1.5L), HRA, home loan interest, NPS, and 80D can significantly reduce taxable income. Best if you fully utilize these deductions.
Use this calculator to compare your actual in-hand salary under both regimes and choose the better option.
Employer EPF and NPS are in your CTC but are not deducted from your in-hand — they are your employer's additional costs.
Taxable income = CTC − Standard Deduction − Eligible Deductions (Old Regime) or CTC − ₹75,000 (New Regime). Tax is then calculated on this amount using progressive slab rates.
The 87A rebate eliminates tax entirely if taxable income is ≤ ₹5L (Old) or ≤ ₹12L (New). A 4% health and education cess applies on the final tax amount.
TDS (Tax Deducted at Source) is this annual tax divided by 12 — deducted each month from your payslip.
EPF (Employees' Provident Fund) involves two contributions: Employee EPF at 12% of Basic Pay — deducted from your monthly in-hand salary. Employer EPF at 12% of Basic Pay — part of your CTC, not deducted from salary.
Gratuity: Payable after 5 years of service. Formula: (Basic Pay × Years) ÷ 26 × 15. Up to ₹20L is tax-exempt. It is typically included in CTC by employers.
Professional Tax: A state-level tax of up to ₹200/month (₹2,400/year) deducted from your salary. Not applicable in all states. Deductible from taxable income under both regimes.
NPS (National Pension System): Employer NPS up to 14% of Basic is deductible under 80CCD(2) — available in both regimes. Employee NPS up to ₹50,000 extra under 80CCD(1B) in the Old Regime only.
A salary structure typically includes these components:
Optimising your salary structure (more HRA, higher Basic up to the limit) can significantly reduce your tax liability.
Approximate monthly take-home for common CTC levels in metro cities · Basic Pay = CTC ÷ 1.26 · Standard deduction applied
| CTC (Annual) | Basic Pay/yr | Employee EPF/yr | Annual Tax (New Regime) | Monthly In-Hand |
|---|---|---|---|---|
| 10 LPA | ₹7.94 L | ₹95,200 | ₹0 (Zero Tax) | ~₹75,200/mo |
| 12 LPA | ₹9.52 L | ₹1,14,300 | ₹0 (Zero Tax) | ~₹89,700/mo |
| 15 LPA | ₹11.90 L | ₹1,42,900 | ₹0 (Zero Tax) | ~₹1,12,900/mo |
| 20 LPA | ₹15.87 L | ₹1,90,500 | ~₹81,400/yr | ~₹1,43,800/mo |
| 25 LPA | ₹19.84 L | ₹2,38,100 | ~₹1,39,600/yr | ~₹1,76,700/mo |
| 30 LPA | ₹23.81 L | ₹2,85,700 | ~₹2,13,300/yr | ~₹2,08,200/mo |
| 40 LPA | ₹31.75 L | ₹3,80,900 | ~₹4,31,000/yr | ~₹2,70,200/mo |
| 50 LPA | ₹39.68 L | ₹4,76,200 | ~₹6,29,300/yr | ~₹3,24,300/mo |
* Estimates assume: New Tax Regime · metro city · Basic Pay = CTC÷1.26 · Employer EPF 12% + Employer NPS 14% of Basic · Professional Tax ₹200/month · No other deductions. Use the calculator above for your exact in-hand salary.
Common questions about in-hand salary, CTC, EPF and income tax in India
Monthly in-hand = Gross Salary/12 − Monthly TDS − Employee EPF/12 − Professional Tax/month. Your Gross Salary equals your CTC (this calculator treats CTC as gross). TDS depends on your chosen tax regime (Old or New), declared deductions, and applicable income tax slabs. Enter your CTC and Basic Pay above for an instant, accurate calculation.
CTC includes everything your employer spends: your gross salary + employer's EPF (12% of Basic) + employer's NPS (14% of Basic) + gratuity. Your take-home is only the gross salary minus income tax, employee EPF (12% of Basic), and professional tax. For a ₹20L CTC, take-home is typically ₹12–16L/year depending on your tax slab and deductions.
New Regime slabs: 0% up to ₹4L · 5% for ₹4–8L · 10% for ₹8–12L · 15% for ₹12–16L · 20% for ₹16–20L · 25% for ₹20–24L · 30% above ₹24L. Zero tax if taxable income ≤ ₹12L (after ₹75K standard deduction).
Old Regime slabs: 0% up to ₹2.5L · 5% for ₹2.5–5L · 20% for ₹5–10L · 30% above ₹10L. Zero tax if taxable ≤ ₹5L. More deductions available to reduce taxable income.
Yes — your employee EPF contribution (12% of Basic Pay) is deducted from your monthly salary before you receive it. This money goes into your EPF account and can be withdrawn at retirement or after specific qualifying events. The employer's matching EPF contribution (also 12%) is part of your CTC — it does not reduce your in-hand pay.
It depends on your deductions. The New Regime is better when you have few investments — lower slabs mean less tax, especially zero tax below ₹12L taxable income. The Old Regime wins when you can claim large deductions: ₹1.5L under 80C, full HRA exemption, home loan interest under Section 24, and NPS contributions. Enter your numbers in this calculator to see which regime gives you more monthly in-hand.
For a ₹20 LPA CTC with Basic Pay ≈ ₹7.94L (CTC÷1.26) in a metro city: New Regime — approximately ₹1.25–1.35L/month in-hand. Old Regime with full deductions (₹1.5L 80C + HRA) — approximately ₹1.15–1.30L/month. Use the calculator above with your exact salary structure for a precise figure.
HRA (House Rent Allowance) exemption is available only in the Old Regime (Sec 10(13A)). The exempt amount is the least of: (1) Actual HRA received, (2) 50% of Basic Pay (metro) or 40% (non-metro), (3) Rent paid minus 10% of Basic Pay. HRA exemption is additional to the ₹1.5L 80CCE limit — it is not counted within that cap.
Salary breakup is the split of your CTC into components: Basic Pay, HRA, LTA, Special Allowance, EPF, NPS, gratuity, and other benefits. The breakup matters because each component is taxed differently. A higher Basic Pay increases EPF deductions and tax savings but reduces in-hand. A higher Special Allowance is fully taxable. The optimal breakup minimises tax while maximising take-home salary.
For a ₹10 LPA CTC in a metro city (New Tax Regime, FY 2026-27), the monthly in-hand salary is approximately ₹75,000–₹76,000/month. This is after deducting employee EPF (~₹7,940/month) and professional tax (₹200/month). Income tax is zero — thanks to the ₹75,000 standard deduction and 87A rebate which eliminates tax for taxable income up to ₹12L. Use the calculator above to check your exact figure with your salary structure.
For a ₹15 LPA CTC in a metro city (New Tax Regime), the monthly in-hand salary is approximately ₹1,12,000–₹1,14,000/month. No income tax applies — taxable income (after EPF and standard deduction) falls within the ₹12L zero-tax threshold under the New Regime. Employee EPF is approximately ₹11,900/month. Switching to Old Regime with full 80C + HRA deductions may give a slightly lower in-hand due to less optimised slabs at this income level.
For a ₹25 LPA CTC (New Tax Regime, metro city), estimated monthly in-hand salary is approximately ₹1,75,000–₹1,78,000/month. Annual income tax is approximately ₹1.4L. Employee EPF deduction is ~₹19,800/month. In the Old Regime with maximum deductions (₹1.5L 80C + full HRA + NPS), in-hand can be slightly higher. Enter your exact salary structure in the calculator above for a precise figure.
For a ₹30 LPA CTC (New Tax Regime, metro city), estimated monthly in-hand is approximately ₹2,07,000–₹2,09,000/month. Annual income tax is around ₹2.1L. Employee EPF is ~₹23,800/month. For the Old Regime with full deductions including HRA, home loan interest (Section 24), ₹1.5L 80C, and NPS, the in-hand may be comparable or higher — compare both regimes using this calculator.
NPS (National Pension System) offers two tax deductions: Employer NPS (80CCD(2)) — up to 14% of Basic Pay is deductible from taxable income under both Old and New regimes, making it one of the most valuable tax benefits available. Employee NPS (80CCD(1B)) — up to ₹50,000 additional deduction, but only in the Old Regime. Combined, NPS can reduce your taxable income by ₹50,000–₹2,00,000+ depending on your Basic Pay.
Gross Salary = Basic Pay + HRA + LTA + Special Allowance + other allowances. It excludes employer's EPF, employer's NPS, and gratuity. CTC = Gross Salary + Employer EPF (12% of Basic) + Employer NPS (14% of Basic) + Gratuity (~4.8% of Basic). CTC is typically 20–30% higher than gross salary. Your in-hand (take-home) is derived from gross salary minus deductions — not from CTC directly.
Gratuity is a statutory benefit payable to employees who have completed at least 5 years of continuous service. Formula: (Basic Pay × Years of Service × 15) ÷ 26. For example, Basic Pay of ₹10L/year with 10 years of service: (10L × 10 × 15) ÷ 26 = ₹5.77L. Gratuity up to ₹20L is fully tax-exempt for government employees; for private sector, it is exempt subject to specified limits. Employers typically include ~4.8% of Basic Pay as gratuity in your CTC structure.
Basic Pay is the core component of your salary on which EPF, gratuity, and HRA are calculated. It is typically 40–50% of your CTC. The maximum allowed Basic Pay is CTC ÷ 1.26 — beyond this, the mandatory deductions (EPF, gratuity, etc.) would exceed statutory limits. A higher Basic Pay means more EPF savings and higher tax deductions in the Old Regime, but it also reduces your in-hand slightly since more is deducted for EPF.
Your CTC and your take-home salary can differ by 20–35% depending on how your salary is structured and which tax regime you choose. The levers are well-defined — the question is which combination works best for your income level and life stage.
The new regime (FY 2025-26) has no exemptions or deductions except the ₹75,000 standard deduction. It favours employees with CTC above ₹15 lakh who cannot fully utilise 80C/80D/HRA — particularly those in rented accommodation in non-metro cities or with low HRA components.
The old regime outperforms when your total exemptions and deductions exceed ₹3.75–4 lakh annually. Full 80C (₹1.5L) + HRA (₹1.2L+) + 80D (₹25K) + NPS (₹50K) + standard deduction (₹50K) can easily total ₹3.95 lakh — shifting breakeven to ₹10–12 lakh CTC.
Ask your employer to restructure allowances: increase food card (tax-free up to ₹26,400/yr), maximise LTA (exempt on actual travel, twice in 4 years), and optimise special allowance vs HRA split based on your city and rent paid.
Employer's NPS contribution (80CCD(2)) is exempt up to 14% of basic under the new regime — above the ₹1.5L 80C cap, outside the standard deduction limit. For a ₹30L CTC with ₹12L basic, this alone saves ₹25,200+ in tax at the 30% slab.
Every payslip line has a tax character. Earnings: Basic (fully taxable), HRA (partially exempt if you pay rent), LTA (exempt on travel bills), Special Allowance (fully taxable), Food Card (exempt up to ₹2,200/month). Deductions: Employee PF (12% of basic, qualifies as 80C), Professional Tax (₹2,400/year, deductible), TDS (advance income tax). Your net pay = Gross Earnings − (PF + PT + TDS + other deductions). The difference between your CTC and net pay often surprises first-time earners — this calculator makes every line transparent.
Under the new regime, the Section 87A rebate eliminates all tax for taxable incomes up to ₹12 lakh. But what happens at ₹12.1 lakh? Without marginal relief, you'd owe ₹80,000 in tax on ₹12.1 lakh — an effective marginal rate of 800% on that last ₹10,000 of income. Marginal relief fixes this: tax is capped at the amount by which your income exceeds ₹12 lakh. So at ₹12.1 lakh, tax = ₹10,000 (not ₹80,000). This relief phases out as income approaches ₹12.75 lakh, where the full slab tax becomes applicable.