Salary Calculator
The salary calculator helps estimate in-hand salary based on CTC, deductions, and chosen tax regime.
Calculate Your In-hand Salary
Enter your salary details to calculate your take-home salary
Max allowed: 15% of CTC.
Basic Salary is fixed at 50% of CTC as per standard industry practice
EPF will be 12% of basic salary (₹0/month)
Estimates only · No login required
How Do Salary Calculators Work?
Salary calculators operate by taking key salary details and applying relevant tax laws and deduction rules to compute the net salary. Here's a step-by-step explanation of how a salary calculator works:
Input Basic Details
The user enters basic details like gross salary (CTC), HRA, special allowance, bonuses, and other earnings into the calculator. The calculator automatically breaks down your CTC into components like Basic Salary (50% of CTC), HRA (40-50% of Basic), and Special Allowance.
Specify Deductions
The user then inputs deductions such as Provident Fund contributions (12% of Basic, max ₹1,800/month), professional tax (₹200/month), and any other specific deductions applicable. In New Regime, only Standard Deduction (₹75,000) is allowed - no other deductions.
Apply Tax Rules
The calculator applies the current income tax slabs and rules to determine the tax liability. It also considers exemptions like HRA (in Old Regime), standard deduction (₹75,000), and other applicable deductions. Tax is calculated using progressive slab rates, and if taxable income is below the rebate threshold, tax becomes zero.
Understanding Your Salary Calculation
Learn how salary calculations work
Understanding Your Salary Structure
Your Cost to Company (CTC) is broken down into various components. Understanding this breakdown helps you see exactly how much you take home after all deductions.
Key Points:
- •Basic Salary is fixed at 50% of CTC as per standard practice
- •HRA is 40-50% of Basic (metro/non-metro) and partially tax-exempt
- •Employee PF is 12% of Basic (max ₹1,800/month if fixed option selected)
- •Standard deduction is automatically applied (₹50,000 Old / ₹75,000 New)
- •Tax is calculated using progressive slab rates with 4% cess
Frequently Asked Questions
Common questions about salary
Disclaimer
These calculators are for estimation and educational purposes only. For personalized financial advice, please consult a qualified financial advisor or chartered accountant.
All calculations are based on standard formulas and current tax laws. Actual results may vary based on individual circumstances and applicable regulations.
How In-Hand Salary Is Calculated in India (With Example)
In India, employees often receive a salary that is lower than what is mentioned in their offer letter or CTC. This difference exists because several statutory and tax-related deductions are applied before the salary is credited.
Gross Salary vs In-Hand Salary: What's the Difference?
Many employees confuse gross salary with in-hand salary, which often leads to incorrect expectations about monthly income. While both terms are related, they represent very different amounts.
Why Your In-Hand Salary Is Lower Than Expected
Many employees feel disappointed when their first salary credit is lower than expected. This usually happens because deductions are not clearly understood at the time of accepting an offer.