Salary Calculator - CTC to Take Home Salary Calculator India 2026

Calculate your take-home salary from CTC, understand salary components, deductions, and optimize your tax savings with our comprehensive salary calculator for Indian employees.

₹1L₹5Cr

Annual package: ₹12.00 L

₹0₹12.00 L

Bonus/Performance pay (annual)

₹4.00 L
30%60%

Monthly: ₹33.33 K

₹2.00 L
30%60%

Monthly: ₹16.67 K

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Net Take-Home Salary

₹75.41 K

per month

ComponentMonthly Amount
Basic Salary33,333
HRA (50%)16,667
Special Allowance30,483
Transport Allowance1,600
Medical Allowance1,250
Gross Salary83,333
PF (12%)-₹4,000
Income Tax (new regime)-₹3,926
Total Deductions-₹7,926
Net Take-Home75,407
Cost to Company (CTC)1,00,000

Salary Projection with Annual Increment

Plan your financial future with our salary projection calculator. Visualize how your annual salary growth and salary increment will impact your take-home salary, income tax liability, and net earnings over the years. This salary growth calculator helps you make informed career decisions and plan tax-saving investments in advance.

%
0%50%
1 year20 years
YearAnnual CTCIncome TaxNet Salary
Current12,00,00047,1129,04,888
202713,20,00061,9639,85,237
202814,52,00078,30010,73,620
202915,97,20097,15911,69,953
203017,56,9201,23,51512,70,308
203119,32,6121,52,50713,80,699

Salary Component Breakdown

Visual representation of your salary components and deductions

Salary Components

Basic Salary
33,333
HRA
16,667
Special Allowance
30,483
Transport
1,600
Medical
1,250

Deductions Breakdown

PF (12%)
4,000
Income Tax
3,926
Net Take-Home
75,407

Smart Salary Planning Tips for Indian Employees

Expert tips to maximize your take-home salary and optimize financial planning

Understand Your CTC

Cost to Company (CTC) includes your gross salary plus employer contributions like PF, gratuity, and insurance. Know the difference between CTC and take-home salary.

Optimize Tax Deductions

Maximize deductions under Section 80C, 80D, and other provisions. Choose between old and new tax regimes based on your income and investments.

Build Emergency Fund

Save 6-12 months of expenses as emergency fund. Automate savings to build financial security and achieve your long-term financial goals.

Invest Surplus Wisely

After expenses, invest surplus in mutual funds, PPF, or ELSS. Start SIPs early to harness the power of compounding for wealth creation.

How to Calculate In-Hand Salary from CTC in India?

Calculating your in-hand salary or take home salary from your CTC (Cost to Company) is essential for effective financial planning. Many Indian employees are confused about the difference between CTC and actual salary received in their bank account each month.

To calculate in-hand salary from CTC, you need to subtract all statutory and voluntary deductions from your gross salary. The salary calculator India helps you understand this breakdown accurately.

Formula to Calculate Take Home Salary:

In-Hand Salary = Gross Salary - Total Deductions

Where Total Deductions include:

  • Employee PF Contribution: 12% of basic salary
  • ESI (if applicable): 0.75% of gross salary (only if gross ≤ ₹21,000)
  • Income Tax: As per applicable tax regime and slabs
  • Professional Tax: Up to ₹2,500 per year (varies by state)

Our monthly salary calculator India and CTC to in-hand salary calculator automatically computes all these deductions to give you the exact monthly in-hand salary you'll receive. Use this salary calculator online tool to plan your monthly budget and expenses effectively.

What is the Difference Between CTC, Gross Salary, and Net Salary?

Understanding the difference between CTC, gross salary, and net salary is crucial for every salaried employee in India. These terms represent different stages of your salary calculation.

1. Cost to Company (CTC)

CTC is the total annual cost an employer incurs for an employee. It includes:

  • Gross Salary
  • Employer's PF contribution (12%)
  • Gratuity (~4.81% of basic)
  • ESI employer contribution (3.25% if applicable)
  • Other benefits (insurance, bonuses)

2. Gross Salary

Gross salary is the total salary before any deductions. It includes:

  • Basic Salary (40-50% of CTC)
  • HRA (House Rent Allowance)
  • Special Allowance
  • Transport Allowance
  • Medical Allowance
  • Other allowances

3. Net Salary / Take Home

Net salary or take-home salary is what you actually receive:

  • Gross Salary minus Employee PF (12% of basic)
  • Minus Income Tax (TDS)
  • Minus ESI (0.75% if applicable)
  • Minus Professional Tax
  • Minus other deductions

Our salary in-hand calculator helps you understand exactly how much money will be credited to your bank account every month. This net salary calculator India tool is essential for comparing job offers and understanding your actual disposable income.

Quick Example:

If your CTC is ₹12,00,000 per annum:

  • Monthly CTC: ₹1,00,000
  • Approximate Gross Salary: ₹85,000 - ₹88,000
  • Deductions (PF + Tax + PT): ₹20,000 - ₹25,000
  • Monthly Take Home Salary: ₹60,000 - ₹68,000

Use our monthly salary to CTC calculator to get precise calculations for your specific salary structure.

How to Calculate Tax on Salary in India?

Calculating income tax on salary in India involves understanding tax slabs, deductions, and choosing the right tax regime. Our salary tax calculator India simplifies this complex calculation for you.

Step-by-Step Guide to Calculate Income Tax:

  1. Calculate Gross Annual Income: Multiply your monthly gross salary by 12
  2. Subtract Standard Deduction: ₹50,000 is allowed under both tax regimes
  3. Subtract Other Deductions (Old Regime Only):
    • Section 80C: Up to ₹1,50,000 (PF, ELSS, PPF, etc.)
    • Section 80D: Up to ₹25,000 (Health Insurance)
    • HRA exemption (if living in rented accommodation)
    • Home loan interest deduction
  4. Apply Tax Slabs: Calculate tax based on your chosen tax regime
  5. Add 4% Health & Education Cess: On the total tax amount

Old Tax Regime (FY 2025-26)

  • Up to ₹2.5 Lakh: 0%
  • ₹2.5L - ₹5L: 5%
  • ₹5L - ₹10L: 20%
  • Above ₹10L: 30%
  • Best for: Employees with significant tax-saving investments

New Tax Regime (FY 2025-26)

  • Up to ₹3 Lakh: 0%
  • ₹3L - ₹6L: 5%
  • ₹6L - ₹9L: 10%
  • ₹9L - ₹12L: 15%
  • ₹12L - ₹15L: 20%
  • Above ₹15L: 30%
  • Best for: Employees with minimal deductions

Use our comprehensive salary budget calculator India to compare both tax regimes and choose the one that minimizes your tax liability. Our calculator automatically computes basic salary calculation in India along with all applicable taxes and deductions.

Pro Tips for Tax Optimization:

  • Maximize Section 80C investments (₹1.5 Lakh) if using old regime
  • Claim HRA exemption if you pay rent and live in a metro city - Use our HRA Calculator to calculate your exact exemption
  • Opt for employer NPS contribution for additional ₹50,000 deduction
  • Use our Income Tax Calculator and Tax Saving Calculator for detailed tax planning
  • Compare both regimes annually as your income and investments change

Understanding Indian Salary Structure Components

Complete guide to salary components, deductions, and how they impact your take-home salary

Salary Components (Income)

Basic Salary40-60% of CTC
HRA40-50% of Basic
Special AllowanceVaries
Transport AllowanceUp to ₹1,600
Medical AllowanceUp to ₹1,250

Salary Deductions

PF (Employee)12% of Basic
ESI0.75% (if gross ≤ ₹21K)
Income TaxAs per tax slabs
Professional TaxUp to ₹2,500/year
Other DeductionsLIC, Loans, etc.

Old vs New Tax Regime Comparison for Salaried Employees

Choose the right tax regime to minimize your tax liability and maximize take-home salary

Old Tax Regime

Tax Slabs (FY 2025-26)

₹0 - ₹2.5L: 0%
₹2.5L - ₹5L: 5%
₹5L - ₹10L: 20%
Above ₹10L: 30%

Key Benefits

• Section 80C: Up to ₹1.5L
• Section 80D: Up to ₹25K
• HRA exemption available
• Home loan interest deduction

New Tax Regime

Tax Slabs (FY 2025-26)

₹0 - ₹3L: 0%
₹3L - ₹6L: 5%
₹6L - ₹9L: 10%
₹9L - ₹12L: 15%
₹12L - ₹15L: 20%
Above ₹15L: 30%

Key Features

• Lower tax rates
• Standard deduction: ₹50K
• Most deductions not allowed
• Simpler tax calculation

Frequently Asked Questions about Salary Calculation

Common questions about salary components, deductions, and tax planning

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

CTC (Cost to Company) is the total amount spent by the employer on an employee, including gross salary, PF, gratuity, insurance, and other benefits. Take-home salary is the actual amount you receive after deductions like PF, ESI, income tax, and professional tax.

How is HRA calculated and what are the tax benefits?

HRA is typically 40-50% of basic salary in non-metro cities and 50% in metro cities. For tax exemption, the minimum of these three is considered: actual HRA received, 50% of basic salary (40% for non-metro), or actual rent paid minus 10% of basic salary.

What is PF and how much is deducted?

Provident Fund (PF) is a retirement saving scheme where 12% of your basic salary is deducted, and your employer contributes an equal amount. The employee's contribution goes to PF account, while 8.33% of employer's share goes to pension fund and 3.67% to PF.

Should I choose old or new tax regime?

New tax regime offers lower tax rates but fewer deductions. Choose new regime if you have minimal investments in tax-saving instruments. Old regime benefits those who invest heavily in Section 80C, 80D, home loan interest, etc.

What is ESI and when is it applicable?

Employee State Insurance (ESI) is a medical care and cash benefit scheme. It's applicable if your gross salary is ₹21,000 or less per month. Employee contributes 0.75% and employer contributes 3.25% of gross salary.

How can I calculate my annual tax liability?

Calculate your gross annual income, subtract standard deduction (₹50,000), applicable deductions (80C, 80D, etc.), and apply tax slabs. Don't forget to add 4% cess on total tax. Use our tax calculator for accurate computation.
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