Free Salary Tool

Take-Home Salary Calculator

Know exactly how much lands in your bank each month. Enter your CTC, salary structure, and city — get a complete breakdown of PF, income tax, and other deductions under both old and new tax regimes.

Payroll software for India PF & ESI Calculator

Annual CTC₹12,00,000

Basic + DA (% of CTC)40%

Typically 30–50% of CTC. PF is 12% of this, capped at ₹15K/month.

HRA (% of CTC)15%

City of residence

Tax regime

New regime: lower rates, fewer deductions. Default from FY 2023-24.

Professional tax

₹2,500/year (varies by state)

Quick examples

Take-home pay

Take-home salary per month

₹97,992

Net annual: ₹11,75,900 · Total deductions: 2%

Salary components (annual)

Basic + DA	₹4,80,000	40%
HRA	₹1,80,000	15%
Other allowances	₹5,40,000	45%
Annual CTC	₹12,00,000

HRA exempt: ₹96,000/year (Section 10(13A) · old regime only)

87A rebate applied: Tax fully rebated under Section 87A. Income up to ₹12L is tax-free under the new regime (Budget 2025).

Deductions (annual)

Employee PF	₹21,600
Professional tax	₹2,500
Income tax	₹0
Cess (4%)	₹0
Total deductions	₹24,100

Taxable income: ₹11,22,500/year · Regime: New (standard deduction: ₹75,000)

* This is an estimate for reference only. Actual in-hand salary depends on your specific salary structure, employer policies, applicable state laws, and investment declarations. Consult your HR or CA for precise calculations.

How take-home pay is calculated

From CTC to bank balance

Your CTC is not what lands in your account. Here is what gets deducted before you see your in-hand salary:

Employee PF

12% of basic salary, capped at ₹1,800/month. Goes to your EPF account.

Income Tax

Calculated on your taxable income after standard deduction and eligible exemptions.

Professional Tax

State-level tax, typically ₹200/month. Only in certain states.

HRA Exemption

Under the old regime, a portion of HRA is tax-free under Section 10(13A).

Tax regimes

Old vs New Tax Regime: which is better?

Old Tax Regime

Standard deduction: ₹50,000
HRA exemption under Section 10(13A)
80C deductions up to ₹1.5L (includes PF)
Higher tax rates but more deductions
Must opt out of new regime each year

New Tax Regime (Default)

Standard deduction: ₹75,000
No HRA exemption
No 80C or other deductions
Lower tax rates — better for most salaried employees
Default regime — no action needed

The new regime is the default since FY 2023-24. To use the old regime, you must file Form 10IE each year. Switch between regimes in the calculator above to compare your take-home pay under both systems.

FAQ

Take-home salary frequently asked questions

What is the difference between CTC and take-home salary?

CTC (Cost to Company) is the total amount your employer spends on you annually. Take-home salary (or in-hand salary) is what you actually receive after deductions like Employee PF (12% of basic), income tax, professional tax, and other contributions. CTC also includes employer PF, insurance, and other benefits you may not see in your bank account.

How is PF deducted from salary?

Employee PF is deducted at 12% of your basic salary + dearness allowance, capped at ₹1,800 per month (12% of ₹15,000 wage ceiling). Your employer also contributes 12% (split between EPS and EPF). The employee PF contribution qualifies for deduction under Section 80C in the old tax regime, up to ₹1.5 lakh per year.

Which tax regime gives me more take-home pay?

For most salaried employees with limited deductions, the New Tax Regime results in higher take-home pay due to lower tax rates. However, if you have significant deductions (HRA, 80C investments, home loan interest, NPS, etc.), the Old Tax Regime may be better. Use the calculator above to compare both regimes with your specific numbers.

What is standard deduction?

Standard deduction is a flat deduction available to all salaried employees. Under the Old Tax Regime, it is ₹50,000 per year. Under the New Tax Regime, it is ₹75,000 per year. This deduction is applied automatically — no investment proofs needed.

What is professional tax?

Professional tax is a state-level tax levied on salaried employees in certain Indian states. The maximum is ₹2,500 per year (₹200–250 per month). States like Karnataka, Maharashtra, Tamil Nadu, West Bengal, and Gujarat levy it. Some states like Delhi, Haryana, and Rajasthan do not have professional tax. Your employer deducts it from your salary and deposits it with the state government.

Why is my take-home salary lower than my CTC/12?

Your monthly CTC divided by 12 is your gross monthly salary. Your take-home is lower because of: (1) Employee PF contribution, (2) Income tax deducted at source (TDS), (3) Professional tax (if applicable), (4) Other deductions like insurance premiums or loan repayments. Typically, expect in-hand salary to be 70–85% of your monthly CTC, depending on your salary structure and tax regime.

Can HRA exemption reduce my taxable income?

Yes, under the Old Tax Regime, HRA exemption under Section 10(13A) can significantly reduce your taxable income. The exemption is the least of three amounts: actual HRA received, 50%/40% of (basic+DA) depending on city, or actual rent paid minus 10% of (basic+DA). Under the New Tax Regime, HRA exemption is not available.

How does SignHR help with salary and payroll management?

SignHR automates the entire payroll process — salary structures, PF/ESI/PT/TDS computation, HRA exemption calculation, payslip generation, and compliance reporting. It handles both old and new tax regimes, integrates with your attendance and leave data, and produces clean inputs for your payroll provider.

Automate it

Let SignHR handle payroll, tax & compliance

SignHR computes PF, ESI, PT, TDS, HRA exemption, and more from your salary data — and hands off cleanly to your payroll provider.

See it in action Payroll features

Official references

Income Tax India EPFO India ESIC Portal