FY 2026-27 · Salaried Employees
India Salary Calculator 2026-27: Calculate your in-hand salary from CTC
Enter your CTC and salary structure below to get a complete monthly breakdown — including standard deduction, PF deductions, professional tax, income tax, and your final take-home salary.
Quick answer: In-hand salary = CTC − employer PF − gratuity − employee PF − professional tax − income tax (TDS), divided by 12 for the monthly figure. This free calculator does it instantly for the Old and New tax regimes.
Last updated:
In-Hand Salary
₹0
Income Tax
₹0
Total Deductions
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Salary Breakup
Monthly breakdown · New Tax Regime
EarningsCTC (Annual / 12)
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EarningsBasic Salary
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EarningsHRA
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EarningsSpecial Allowance
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Gross Earnings
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DeductionEmployee PF (12% of basic)
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DeductionProfessional Tax
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TaxIncome Tax (monthly)
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🏠 Monthly In-Hand Salary
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Note on CTC vs Gross: The above assumes a typical salary structure. Employer's PF contribution (12% of basic) and gratuity (~4.81% of basic) are included in your CTC but are not part of your monthly gross pay — hence the difference between CTC and take-home.
Salary Fundamentals
CTC vs Gross vs Net In-Hand — Explained
Understanding your offer letter can be confusing. CTC, Gross Salary, and In-Hand Salary are three very different numbers. Here's exactly how they relate.
CTC (Cost to Company)
The total amount your employer spends on you in a year — including your salary, employer's PF contribution, gratuity, health insurance premiums, and any other perks or benefits. This is the number in your offer letter.
= Gross Salary + Employer PF + Gratuity + Perks
CTC is NOT your take-home. It includes costs your employer bears on your behalf that you never directly receive in your bank account.
Gross Salary
Your total salary before any deductions — the sum of all your salary components: Basic, HRA, Special Allowance, LTA, Food Allowance, and other allowances. This is what appears on your salary slip as total earnings.
= Basic + HRA + All Allowances
Gross salary = CTC minus employer's PF (12% of basic) and gratuity (4.81% of basic). Typically 13–17% less than CTC for most salaried employees.
Taxable Salary
Gross salary minus exemptions and deductions. The standard deduction (₹75,000 New / ₹50,000 Old) is the first reduction. Under the Old Regime, you can further reduce this with HRA, 80C investments, NPS, 80D premiums, and home loan interest.
= Gross − Standard Deduction − Exemptions
Income tax is calculated on your taxable salary, not your gross or CTC. Minimising taxable income is the core of tax planning.
In-Hand / Net Salary
What actually hits your bank account every month. Gross salary minus all monthly deductions: Employee PF (12% of basic), Professional Tax, and monthly TDS (income tax divided by 12). This is your real monthly budget.
= Gross − Employee PF − Prof. Tax − TDS
For most salaried employees on ₹10–20L CTC, in-hand salary is roughly 65–75% of CTC annually. The gap narrows at lower incomes and widens at higher ones due to tax.
FY 2026-27 · Complete Guide
Standard Deductions Explained
Every salaried employee is entitled to certain deductions that reduce their taxable income — some are automatic (no paperwork needed), others require investment proof. Here is the complete list of standard and statutory deductions applicable to salaried individuals in FY 2026-27.
Automatic Deductions — No Proof Required
These deductions are applied automatically by your employer or the tax system. You don't need to declare them or submit any documents.
Section 16(ia)Both Regimes
Standard Deduction
₹75,000 (New) · ₹50,000 (Old)
Flat deduction from gross salary income. No proof, no declaration. Increased to ₹75,000 under New Regime from FY 2024-25 onwards (Budget 2024). Saves up to ₹23,400 at the 30% slab under New Regime.
Section 16(iii)Both Regimes
Professional Tax
Actual (Max ₹2,400/year)
State-levied tax deducted by employers in states like Karnataka (₹200/mo), Maharashtra (₹200/mo), West Bengal, Andhra Pradesh, Tamil Nadu. Fully deductible from salary — deducted before tax calculation. Not applicable in all states.
80CCD(2)Both Regimes
Employer NPS Contribution
Up to 10% of Basic (14% Govt.)
The only investment-linked deduction available under the New Regime. Employer's NPS contribution is deductible even without any action from the employee — ask HR to structure your CTC to include employer NPS for maximum tax efficiency in both regimes.
Provident FundMandatory
Employee PF Deduction
12% of Basic Salary
Deducted compulsorily from salary every month (for basic > ₹15,000/month). Goes into your EPF account — not tax-deductible on its own, but the amount invested qualifies for 80C deduction under Old Regime. Interest is tax-free up to 9.5% p.a.
Investment Deductions — Old Regime Only
These deductions reduce your taxable income under the Old Regime. You must declare them to your employer at the start of the year and submit proof (Form 12BB) before year-end to avoid higher TDS.
Section 80COld Only
ELSS / PPF / EPF / LIC / NSC / SSY / SCSS / Home Loan Principal
Up to ₹1,50,000
Most popular deduction. All instruments combined are capped at ₹1.5L. EPF already counts here. ELSS is preferred for 3-year lock-in and market returns. Submit proof by February each year to avoid excess TDS deduction.
80CCD(1B)Old Only
NPS Tier-I — Self Contribution
Up to ₹50,000 (over & above 80C)
An additional ₹50,000 deduction entirely separate from the ₹1.5L 80C limit. At the 30% slab this saves ₹15,600/year. Tier-I account only — Tier-II NPS does not qualify. Useful for employees maximising 80C already.
HRA ExemptionOld Only
House Rent Allowance
Least of: Actual HRA · Rent−10% basic · 50% basic (metro) / 40% (non-metro)
Requires rent receipts from landlord. If annual rent exceeds ₹1 lakh, landlord PAN is mandatory. Among the most valuable deductions for metro-city employees — often ₹1–3L annually. Not available under New Regime.
Section 24(b)Old Only
Home Loan Interest
Up to ₹2,00,000 (self-occupied)
Deduction on interest paid on home loan for self-occupied property. For let-out property, there is no upper limit but total loss set-off against salary is capped. Requires interest certificate from the lender.
Section 80DOld Only
Health Insurance Premium
₹25,000 (self + family) + ₹25,000–₹50,000 (parents)
Self & family: ₹25,000. Parents below 60: additional ₹25,000. Parents 60+: additional ₹50,000. Preventive health check-up (₹5,000) included within limits. Requires premium receipts.
LTAOld Only
Leave Travel Allowance
Actual travel cost (domestic)
2 domestic trips in a 4-year block (2022–25 block). Covers transport only — no hotel or food. Cheapest economy airfare / AC train fare for shortest route. Submit travel bills to employer within the year of travel.
Section 80EOld Only
Education Loan Interest
Entire interest paid (8 years)
No cap on amount — the full interest portion of your education loan EMI is deductible for 8 years from the first year of repayment. Applicable for loans taken for self, spouse, children, or a student you are the guardian of.
80TTA / 80TTBOld Only
Savings Bank Interest
₹10,000 (₹50,000 for senior citizens)
Deduction on interest earned from savings bank accounts. For senior citizens (60+), Section 80TTB covers all bank deposits (FD + savings) up to ₹50,000. Not applicable to FD interest for non-seniors.
CTC Components Included in Cost but Not Monthly Pay
These items are part of your CTC (i.e., your employer bears the cost) but are not paid to you monthly in cash — which is why CTC is always higher than your take-home.
Provident FundIn CTC
Employer PF Contribution
12% of Basic Salary
Equal to your employee contribution. Goes into your EPF account and is accessible at retirement, resignation (after 5 yrs for tax-free withdrawal), or under specific criteria. Tax-free at maturity. Forms part of CTC.
Gratuity ActIn CTC
Gratuity Provision
4.81% of Basic Salary
A lump sum paid on leaving after 5+ years. Calculated as (Basic × 15 × years of service) / 26. Employers provision this amount monthly in the CTC calculation. Up to ₹20L is tax-free on receipt. You won't get it before 5 years of service.
InsuranceIn CTC
Group Health & Life Insurance
Actual premium (varies)
Employer-paid group health insurance and term life insurance premiums are often included in CTC. Premium value is part of your CTC but the insurance benefit is received non-monetarily. Many employers include ₹5,000–₹30,000/year for this.
