Salary Calculator (India) — Free CTC to In‑Hand, Gross, HRA, PF, and Income Tax for FY 2025–26

Use this free online Salary Calculator to convert CTC to in‑hand salary, estimate monthly take‑home after tax, compute EPF/ESIC, and break down gross vs net salary as per India’s new tax regime slabs for FY 2025–26 (AY 2026–27). It uses current slabs where 0% applies up to ₹4 lakh and 30% applies above ₹24 lakh under the updated new regime, helping with accurate monthly take‑home projections and annual tax planning. The calculator also supports common payroll components in India such as HRA, basic, DA, allowances, bonus, PF, professional tax, and standard deduction eligibility where applicable.

• CTC to gross to in‑hand salary conversion and definitions.
• FY 2025–26 tax slabs, surcharge notes, and the new regime default.
• EPF contribution at 12% of Basic+DA and its impact on take‑home.
• HRA exemption rules u/s 10(13A), metro/non‑metro limits, and necessary documents

How the Salary Calculator works

• Enter annual CTC or monthly pay, basic salary, HRA, allowances, bonuses, employer/employee PF, and other deductions (professional tax, insurance), then choose tax regime assumptions aligned to FY 2025–26.
• The flow is: CTC → subtract employer‑only components (e.g., employer PF) to estimate gross → subtract taxes and employee deductions (PF, PT) to get net in‑hand.
• For FY 2025–26, the new regime slab set starts at ₹0–₹4 lakh (nil) and introduces bands up to 30% above ₹24 lakh, which the tool uses to approximate annual tax before dividing monthly.

Key terms explained

• CTC (Cost to Company): Total employer outlay, including fixed/variable pay, benefits, and employer contributions like PF or insurance.
• Gross Salary: Pay before employee‑side deductions; excludes employer‑only contributions to arrive from CTC.
• Net/In‑Hand Salary: Gross minus employee PF, PT, TDS/income tax, and any other employee‑side deductions.

FY 2025–26 income tax slabs (new regime)

• New slabs effective FY 2025–26: up to ₹4 lakh — nil; ₹4–8 lakh — 5%; ₹8–12 lakh — 10%; ₹12–16 lakh — 15%; ₹16–20 lakh — 20%; ₹20–24 lakh — 25%; above ₹24 lakh — 30%.
• The Union Budget 2025 changes extend relief and keep the new regime as default, with 30% kicking in only above ₹24 lakh, replacing the earlier ₹15 lakh threshold.
• The official e‑filing and calculator resources reflect Finance Act 2025 changes for AY 2026–27 computations.

Salary components the tool supports

• Basic Salary and DA: Foundational components; DA typically applies to public sector/government employees and is fully taxable.
• HRA: Tax‑preferred rent allowance, with exemption calculation rules under Section 10(13A).
• Allowances: Special, travel/conveyance, and other allowances; taxability depends on the Income Tax Act and employer policy.
• Bonus/Variable Pay: Included in gross; taxable as per slab.

HRA exemption rules (u/s 10(13A))

• Exemption is the least of: actual HRA received; rent paid minus 10% of salary; 50% of salary for metro cities or 40% for non‑metros.
• Documentation often includes rent receipts, rental agreement, Form 12BB, rent proofs, and landlord PAN if annual rent exceeds ₹1 lakh.
• In the new regime, HRA exemption is generally not available; old regime allows it under Section 10(13A).

EPF contribution and its effect on take‑home

• Employee EPF is 12% of Basic+DA; the employer contributes too, with statutory distribution between EPF/EPS as per EPFO norms.
• The statutory wage ceiling commonly used is ₹15,000 for mandatory PF unless higher contributions are opted per establishment policy.
• EPF reduces the net in‑hand but builds long‑term savings; the tool subtracts employee EPF from gross to show realistic take‑home.

Professional tax (state‑specific)

• Professional tax is a state‑levied deduction; the annual maximum is generally capped at ₹2,500.
• Slab rates vary by state and income band, so deductions can differ by location and month.
• The calculator includes a PT toggle/value so the in‑hand estimate reflects state compliance.

Formulas used by the calculator

• Gross salary estimation from CTC: Gross=CTC−Employer‑only contributions (e.g., PF/insurance)Gross=CTC−Employer‑only contributions (e.g., PF/insurance)
• Employee EPF: EPFemployee=12%×(Basic+DA)EPFemployee=12%×(Basic+DA)
• HRA exemption (old regime): HRA Exempt=min⁡{Actual HRA, Rent paid−0.1×Salary, 0.5×Salary (metro) or 0.4×Salary (non‑metro)}HRA Exempt=min{Actual HRA, Rent paid−0.1×Salary, 0.5×Salary (metro) or 0.4×Salary (non‑metro)}
• Net/In‑Hand Salary (monthly): Net=Gross−(Income Tax/TDS+Employee EPF+Professional Tax+Other employee deductions)Net=Gross−(Income Tax/TDS+Employee EPF+Professional Tax+Other employee deductions)

Who should use this Salary Calculator

• Job seekers comparing offers to understand CTC to in‑hand differences before accepting packages.
• Working professionals optimizing HRA/PF choices and deciding between new vs old regime based on eligibility.
• HR/payroll teams and freelancers converting annual to monthly estimates and modeling variable pay impact.

FAQs