What is the standard CTC breakup in India?

A typical CTC breakup is: Basic Salary (40-50% of CTC), HRA (40-50% of Basic), Special Allowance (remaining), Employer PF (12% of Basic up to ₹15,000), and Gratuity (4.81% of Basic). Some companies also include medical insurance, bonuses, and other perks.

How much tax do I pay on ₹12 lakh salary in New Regime?

Under the New Tax Regime (FY 2025-26), if your taxable income is ≤ ₹12 lakh (after ₹75,000 standard deduction), you get full tax rebate under Section 87A. So a gross salary of up to ₹12.75 lakh can effectively result in zero tax.

What is Professional Tax and how much is it?

Professional Tax is a state-level tax on salaried individuals. It ranges from ₹0 to ₹2,500 per year depending on the state. Maharashtra and Karnataka charge ₹2,400/year, while some states like Rajasthan and Delhi don't levy it.

How do I maximize my take-home salary?

Choose the New Tax Regime if you have few deductions (zero tax up to ₹12.75L). If you have significant deductions (home loan, 80C, 80D, HRA), the Old Regime may be better. Opt for PF on capped basic (₹15,000) for higher take-home. Restructure salary to maximize HRA and tax-free allowances.

💰 FY 2025-26 • Budget 2025 Updated

Salary Calculator India

Q: How is in-hand salary calculated from CTC?

In-hand salary = CTC minus employer PF (12% of basic), gratuity provision (4.81% of basic), professional tax, and income tax. The remaining components like Basic, HRA, and Special Allowance form your gross salary, from which employee PF and tax are deducted to arrive at take-home pay.

Q: What is the difference between CTC, Gross Salary, and Net Salary?

CTC (Cost to Company) includes everything the employer spends — salary + PF + gratuity + perks. Gross Salary is CTC minus employer contributions (PF, gratuity). Net Salary (take-home) is Gross minus employee deductions (PF, professional tax, income tax).

Q: Is PF deducted on full basic or capped at ₹15,000?

By law, PF is mandatory on Basic up to ₹15,000/month. However, many companies contribute on the full Basic salary. This calculator lets you choose either option. Contributing on full basic means more retirement savings but lower take-home pay.

Convert CTC to in-hand salary instantly. Full component breakdown with Old vs New tax regime comparison.

✅ All Salary Components ✅ Old vs New Regime ✅ PF Options ✅ PDF Export

⚡ Quick Presets

Enter Your Salary Details

Annual CTC (₹) ?Cost to Company — total annual expense your employer pays for you, including PF, gratuity, insurance, etc.

Basic Salary (% of CTC) ?Typically 40-50% of CTC. Higher basic = more PF/gratuity but lower HRA. Most companies use 40%.

40%

HRA (% of Basic) ?House Rent Allowance — typically 40-50% of Basic. 50% for metros (Delhi, Mumbai, Kolkata, Chennai).

50%

Monthly Rent Paid (₹) ?Enter actual rent for HRA exemption under Old Regime. Enter 0 if you live in own house or don't pay rent.

City Type

Age Group

PF Contribution Basis ?PF is mandatory on Basic up to ₹15,000/month. Some companies contribute on full Basic — more PF but lower take-home.

Professional Tax (₹/year) ?State-level tax. Maharashtra: ₹2,400, Karnataka: ₹2,400, Tamil Nadu: ₹2,500, Delhi/Rajasthan: ₹0. Max ₹2,500.

🏦 Employer NPS — 80CCD(2) Both Regimes

Employer NPS Contribution (% of Basic) ?Some employers contribute to NPS. Up to 10% of Basic is tax-exempt in both regimes. Enter 0 if not applicable.

Annual CTC

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Monthly Take-Home

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Better Regime

Total Tax

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by choosing better regime

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Old vs New Regime Comparison

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🧩 CTC Composition

💡

CTC vs In-Hand

Your in-hand salary is typically 65-75% of CTC. The rest goes to PF, gratuity, taxes, and insurance — all of which build your financial safety net.

🎯

Zero Tax Trick

Under New Regime, salary up to ₹12.75L results in zero tax (₹75K standard deduction + ₹12L rebate). No investment proofs needed!

⚖️

Old vs New Regime

If your total deductions (80C, 80D, HRA, home loan) exceed ₹3-4L, Old Regime may save more. Otherwise, New Regime is usually better.

Frequently Asked Questions

How is in-hand salary calculated from CTC?▼

In-hand = CTC minus employer PF (12% of basic), gratuity (4.81% of basic), professional tax, and income tax. The remaining components — Basic, HRA, Special Allowance — form your gross salary, from which employee PF and tax are deducted.

What is the difference between CTC, Gross Salary, and Net Salary?▼

CTC = total employer cost (salary + PF + gratuity + perks). Gross = CTC minus employer-side costs. Net/Take-home = Gross minus employee deductions (PF + tax + professional tax).

Is PF deducted on full Basic or capped at ₹15,000?▼

By law, PF is mandatory on Basic up to ₹15,000/month. Many companies give the option to contribute on full Basic (more PF savings but lower take-home). This calculator supports both modes.

How much tax on ₹12L salary under New Regime?▼

Zero! If your taxable income ≤ ₹12L (after ₹75K standard deduction), Section 87A rebate makes your tax NIL. Effective for gross salary up to ~₹12.75L. No investment proofs needed.

When is Old Regime better than New?▼

Old Regime is better if you have substantial deductions: 80C (₹1.5L) + 80D (₹25-50K) + HRA exemption + home loan interest (₹2L) + NPS (₹50K). At higher salaries (₹20L+), these deductions can save ₹1-2L more than New Regime.

What is Professional Tax?▼

A state-level tax on salaried employees. Ranges from ₹0 (Delhi, Rajasthan) to ₹2,500 (Tamil Nadu). It's deducted monthly from salary. Maximum cap is ₹2,500/year across India.

What is Gratuity and when do I get it?▼

Gratuity = (Last Basic × 15 × Years) / 26. You get it after 5 years of continuous service. It's part of CTC as a provision (4.81% of Basic). Tax-free up to ₹20 lakh.

How to maximize take-home salary?▼

1) Choose New Regime if deductions are low. 2) Opt for PF on capped basic (₹15K). 3) Restructure salary with higher Special Allowance. 4) Use NPS for employer contribution (both-regime benefit). 5) Negotiate higher CTC rather than higher basic.