Salary Calculator
Break down your CTC into take-home salary with detailed deductions.
Monthly Take Home
Annual: ₹
Salary Breakdown
* Calculated under the New Tax Regime for FY 2025-26. Standard deduction of ₹75,000 applied.
Understanding CTC vs Take-Home Salary
CTC, or Cost to Company, is the total amount a company spends on an employee in a year. It includes your basic salary, allowances (HRA, special allowance, conveyance), employer contributions (PF, gratuity, insurance), bonuses, and other perquisites. Your take-home salary, also known as in-hand salary or net salary, is what you actually receive in your bank account after all deductions. The difference between CTC and take-home salary can be significant, sometimes ranging from 25% to 40% of CTC.
Salary Components Breakdown
A typical Indian salary structure consists of several components. Basic Salary is usually 40-50% of CTC and forms the base for calculating other benefits. House Rent Allowance (HRA) is typically 40-50% of basic salary and is partially exempt from tax if you pay rent. Special Allowance is a flexible component that makes up the remaining salary. Employee Provident Fund (EPF) deducts 12% of basic salary (up to ₹15,000 basic) from both employee and employer sides. Professional Tax is a state-level tax capped at ₹2,500 per year in most states.
Deductions from Salary
Common deductions from your gross salary include Employee PF contribution (12% of basic up to ₹15,000), professional tax (varies by state, maximum ₹200/month), income tax (TDS based on your tax slab and regime), and any other voluntary deductions like VPF or insurance premiums. Understanding these deductions helps you negotiate better during salary discussions.
How to Use the Salary Calculator
Enter your annual CTC to see a detailed breakdown of all salary components and deductions. The calculator shows your monthly and annual basic salary, HRA, special allowance, PF contribution (both employee and employer), professional tax, estimated income tax, and final take-home salary. Use this information for financial planning, loan applications, or salary negotiations. The calculator follows standard Indian payroll conventions and tax rules for FY 2025-26.
Tips for Maximizing Take-Home Salary
To maximize your in-hand salary, consider restructuring your salary with higher HRA if you pay rent, opting for tax-saving allowances like LTA and food coupons, and making full use of Section 80C deductions (PPF, ELSS, NPS). Choosing between old and new tax regimes can also significantly impact your take-home. Compare both regimes using our Income Tax Calculator to find the better option for your income level.
Frequently Asked Questions
CTC (Cost to Company) is the total expense a company incurs for an employee, including salary, benefits, and employer contributions. Take-home salary is the net amount you receive after deducting employee PF, professional tax, income tax (TDS), and other deductions. The difference can be 25-40% of CTC.
PF (Provident Fund) is calculated as 12% of basic salary, with a cap on ₹15,000 basic salary for the employer contribution. The employee also contributes 12% of basic salary. If your basic salary is ₹20,000, your PF deduction is ₹2,400/month (but employer PF contribution to EPS is limited to ₹1,800).
Professional tax is a state-level tax on employment, capped at ₹2,500 per year by the Constitution. The actual amount varies by state—Karnataka charges ₹200/month, Maharashtra charges ₹200/month (₹300 in February), while some states like Rajasthan have no professional tax.
HRA exemption under the old tax regime is the minimum of: (1) Actual HRA received, (2) 50% of basic salary for metro cities (40% for non-metro), or (3) Rent paid minus 10% of basic salary. To claim HRA exemption, you must actually pay rent and provide rent receipts.