How to use this calculator
- Enter or choose annual CTC.
- Enter or choose basic pay as a share of CTC.
- Enter or choose pF contribution rate.
- Enter or choose pF wage cap per month (optional).
- Enter or choose employer PF is part of CTC.
- The monthly take-home pay updates as you type. Use Copy result or Share to keep it.
Method
Gross = CTC − Employer PF − Other CTC items; Taxable = Gross − Standard deduction (₹75,000 new / ₹50,000 old) − old-regime deductions; Take-home = Gross − Employee PF − Professional tax − Income tax. Tax = slab tax − rebate u/s 87A (with marginal relief) + surcharge (with marginal relief) + 4% health and education cess
- PF
- PF rate × basic pay (or the capped PF wage) × 12
- Income tax
- FY 2025-26 tax for the chosen regime
Worked example
- Basic = 50% × 12,00,000 = ₹6,00,000; PF at 12% = ₹72,000 from you and ₹72,000 from the employer.
- Gross = 12,00,000 − 72,000 = ₹11,28,000; taxable (new) = 11,28,000 − 75,000 = ₹10,53,000, below ₹12 lakh, so tax is nil after rebate.
- Take-home = 11,28,000 − 72,000 − 2,400 = ₹10,53,600 a year, or ₹87,800 a month.
A ₹12 lakh CTC with 50% basic pays about ₹87,800 a month in hand under the new regime.
What the result means
A large part of the gap between CTC and take-home pay is PF, which is still your money. Try the old regime with your deductions to see whether it raises your monthly pay.
Assumptions and limits
- Rates are for FY 2025-26 (AY 2026-27), the year covered by the Finance Act 2025, as published by the Income Tax Department. They are not yet updated for tax year 2026-27 under the Income-tax Act, 2025.
- You are a resident individual and all income is taxed at normal slab rates (no special-rate capital gains, lottery or similar income).
- New regime: nil up to ₹4 lakh, then 5%, 10%, 15%, 20%, 25% in ₹4 lakh steps and 30% above ₹24 lakh; rebate up to ₹60,000 when income is at most ₹12 lakh, with marginal relief just above it.
- Old regime: nil up to ₹2.5 lakh (₹3 lakh at 60–79, ₹5 lakh at 80+), 5% to ₹5 lakh, 20% to ₹10 lakh, 30% above; rebate up to ₹12,500 when income is at most ₹5 lakh.
- Surcharge of 10% above ₹50 lakh, 15% above ₹1 crore, 25% above ₹2 crore, and above ₹5 crore 25% (new) or 37% (old), with marginal relief; 4% cess on tax plus surcharge.
- Professional tax is deducted from pay but not from taxable income here.
- Employer and employee PF use the same rate and wage base.
- Variable pay, reimbursements and perquisites are not modelled.
- Employers spread tax (TDS) across the year differently, so monthly pay may vary.
- Tax on employer PF or NPS above the tax-free limits is not included.
- Jurisdiction
- India
- Rates effective from
- 1 April 2025
- Authority
- Income Tax Department (CBDT), Finance Act 2025, for FY 2025-26 / AY 2026-27
- Rates last checked
- 29 October 2026
Questions
Why is my in-hand salary much lower than CTC ÷ 12?
CTC includes the employer’s PF and items such as gratuity and insurance that are not paid monthly; your own PF, professional tax and income tax are then deducted.
Does a higher basic pay reduce take-home pay?
Usually yes, because PF is a percentage of basic. It also raises your PF savings and gratuity.
Sources
Please note: Tax rules change and depend on how a supply is classified. Use this as a guide and confirm with the official notifications or a tax professional.