Got a job offer? Don't just trust the CTC number.
Your income tax on this is ₹0. The ₹16,205 gap is ₹10,000 a month of variable pay (₹1,20,000 a year) that only lands at year-end, plus PF, gratuity and ₹200 of professional tax. Example assumes basic at 50% of CTC and Karnataka rates.
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Know your CTC? Calculate take-home directly
Old vs new tax regime, FY 2026-27 slabs. Share the result with your exact numbers.
For HRA, “metro” means Delhi, Mumbai, Kolkata, or Chennai (50% of basic). Bengaluru, Hyderabad, Pune & others are 40%.
new regime
RecommendedGross salary (annual)₹11,49,540
Your ₹12,00,000 CTC less employer PF (₹21,600) and gratuity (₹28,860), which your employer pays but never reach you as salary.
old regime
Gross salary (annual)₹11,49,540
Your ₹12,00,000 CTC less employer PF (₹21,600) and gratuity (₹28,860), which your employer pays but never reach you as salary.
How your CTC is split
Employer PF and gratuity are part of CTC but not paid as monthly cash.
Show the full tax calculation
Every step for your own numbers, so you can check the arithmetic by hand against the published slabs. Nothing here is estimated by a model. It is the same deterministic calculation the figures above come from.
new regime
| Slab | Taxed here | Rate | Tax |
|---|---|---|---|
| Up to ₹4L | ₹4,00,000 | 0% | ₹0 |
| ₹4L to ₹8L | ₹4,00,000 | 5% | ₹20,000 |
| ₹8L to ₹12L | ₹2,74,540 | 10% | ₹27,454 |
old regime
| Slab | Taxed here | Rate | Tax |
|---|---|---|---|
| Up to ₹2.5L | ₹2,50,000 | 0% | ₹0 |
| ₹2.5L to ₹5L | ₹2,50,000 | 5% | ₹12,500 |
| ₹5L to ₹10L | ₹5,00,000 | 20% | ₹1,00,000 |
| Above ₹10L | ₹97,140 | 30% | ₹29,142 |
Slabs, the ₹75,000/₹50,000 standard deduction, the Section 87A rebate, surcharge and cess follow the Income Tax Act as amended by the Finance Act 2025. Verify against incometax.gov.in or see our methodology.
Useful? Share your breakdown. The link reopens with these exact numbers.
How take-home salary is calculated in India
Your cost-to-company is not what lands in your bank account. Employers carve out retirals first, mainly employer Provident Fund and gratuity, which count toward CTC but are never paid as monthly cash. What remains is reduced by the standard deduction, ₹75,000 in the new regime, and in the old regime by exemptions such as HRA and deductions under 80C, 80D and home-loan interest. Income tax, a 4% cess, employee PF and state professional tax come off what is left. That final number is your monthly in-hand.
Which regime wins depends on your deductions. With few investments the new regime usually comes out ahead; with high HRA, 80C and home-loan interest the old one can. The calculator works out both and shows the full slab-by-slab arithmetic for each, so the answer is checkable rather than asserted. See the full methodology.
Frequently asked questions
- What is CTC (cost-to-company)?
- CTC is the total annual amount a company spends on you. It includes your salary plus components you never receive as monthly cash, such as employer Provident Fund and gratuity, so your real in-hand pay is always lower than your CTC.
- How is take-home salary calculated in India?
- Start from CTC, remove employer PF and gratuity, subtract the standard deduction and any old-regime exemptions (HRA, 80C, 80D, home-loan interest, NPS) to get taxable income, then deduct income tax, 4% cess, employee PF, and state professional tax. What remains is your monthly in-hand.
- Which is better, the old or new tax regime?
- It depends on your deductions. With few investments the new regime usually wins thanks to its higher ₹75,000 standard deduction and wider slabs. With significant HRA, 80C, and home-loan interest the old regime can come out ahead. This calculator computes both for FY 2026-27 and tells you which gives more in-hand.
- Is this calculator accurate?
- It uses the FY 2026-27 slabs, rebate, surcharge with marginal relief, cess, PF, and state professional tax as per the Finance Act 2025 (retained unchanged by Finance Act 2026). Every formula is documented on the methodology page, and every result shows its full working. It is still an estimate: your exact payslip depends on your employer's structure.
- Can I switch between tax regimes?
- Salaried individuals without business income can choose their regime each financial year when filing returns. The new regime is the default; you can opt for the old regime if it gives you a higher take-home.
Before you sign: read the guides
Is a 90-Day Notice Period Normal in India?
Common at senior levels, negotiable more often than candidates think.
What Is a Clawback Clause in an Offer Letter?
Money already in your account that you might have to pay back.
Variable Pay Above 25% of CTC: Red Flag or Normal?
The number on the offer letter isn't the number in your bank account.
Employment Bond in Offer Letters: Can You Refuse to Sign?
A minimum-tenure commitment, usually with a financial penalty attached.
Non-Compete Clause in India: Is It Even Enforceable?
Mostly unenforceable after you leave, but the details matter.
What Does 'CTC' Actually Mean? Why Your Take-Home Is Always Lower
The number on your offer letter and the number in your bank account are never the same.
Your First Job Offer: What the CTC Actually Means
What a first job actually pays, and the clauses to check before you sign.
Old vs New Tax Regime: Which Gives You More?
The default wins for most people. Here is when it does not.
How to Read Your Salary Breakup (Annexure)
Every line explained, and which ones you never actually see.
Gratuity: The 5-Year Rule and What You Actually Get
It is in your CTC, but you only see it if you stay.
PF on Your Salary: Why It Is Deducted, and Is It Good?
The deduction that feels like a loss but is mostly your own savings.
HRA Exemption: How Much of Your Rent Is Tax-Free?
The least of three numbers, and a calculator to find yours.
Notice Period Buyout: What Leaving Early Costs
What the unserved months cost, and who usually pays.