In-hand salary = CTC − Employee PF (12% of Basic) − Professional Tax − Income Tax (TDS). Your CTC includes employer PF and gratuity contributions which are not paid to you directly. Our calculator subtracts all mandatory deductions to show your exact take-home salary.
New Tax Regime vs Old Tax Regime — which is better?
The New Tax Regime (2023 onwards) has lower tax rates but allows fewer deductions. It is generally better if you have fewer investments. The Old Regime is better if you have significant deductions like HRA, 80C investments (₹1.5L), NPS, and home loan interest. Our calculator shows both side-by-side so you can decide.
What is the standard deduction in 2026?
For FY 2025-26, the standard deduction is ₹75,000 under the New Tax Regime and ₹50,000 under the Old Tax Regime. This is automatically applied in our calculator.
How is HRA exemption calculated?
HRA exemption is the minimum of: (1) Actual HRA received, (2) 50% of Basic Salary for metro cities / 40% for non-metro, or (3) Rent paid minus 10% of Basic Salary. Our calculator uses the correct formula based on your city selection.
Is professional tax applicable everywhere in India?
Professional tax varies by state. Maharashtra, Karnataka, and West Bengal levy up to ₹2,500/year. Some states like Delhi and Rajasthan do not charge professional tax. Enter ₹0 if your state doesn't levy it.