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What reaches your bank each month?

Your CTC, in hand

  • Your CTC split into pay, PF and tax
  • Gratuity counted
  • Old and new regime on your salary
Start from someone like you
In hand every month
₹87,799
New regime · ₹12.04 L a year with the bonus, 80% of your ₹15 L CTC
Your PF at 58
₹4.52 Cr
tax-free
  • In hand₹12.04 L80%
  • Saved for later₹2.16 L14%
  • Tax₹80,3325%

Your payslip

a month
Earnings
  • Basic₹62,500
  • HRA₹31,250
  • Special allowance₹8,244
Gross₹1,01,994
Deductions
  • Your PF₹7,500
  • Professional tax₹208
  • Income tax (TDS)₹6,486
Total deductions₹14,194
Net pay₹87,799
Part of your CTC, not in the monthly payslip
  • Employer PF · into your EPF₹90,000/yr
  • Gratuity · paid after 5 years₹36,075/yr
  • Variable pay · once a year₹1.5 L/yr

Your inputs

What this means

  • Your next ₹100 of salary is taxed ₹16, though your average rate is 5.7% of gross.
    Why?

    Tax rises slab by slab, so only the part of income in your top slab pays the top rate.

  • You're ₹98.9K past the ₹12 lakh tax-free limit, which costs ₹77.8K in tax.
    Why?

    Up to ₹12 lakh of taxable income (₹12.75 lakh of salary), the 87A rebate wipes out tax in the new regime. Employer NPS moves salary out of taxable income and can bring you back under.

  • The new regime leaves you ₹24.9K more a year.
    Why?

    The old regime needs ₹5.12 L of deductions beyond the standard one to match the new; you claim ₹3.92 L. HRA, 80C, 80D and home-loan interest all count.

  • ₹2.16 L a year is saved for you in PF, gratuity, so it's not in your payslip.
    Why?

    Your PF share and your employer's both go to your EPF account, which earns about 8.25% tax-free. Gratuity is paid when you leave after 5 years or more.

  • ₹1.5 L of your CTC is variable pay, paid once a year and only if targets are met.
    Why?

    Tax on it is usually deducted across the year's payslips, as here. If it's paid short, you get some of that TDS back as a refund.

  • Employer NPS could save you ₹77.8K a year in tax.
    Why?

    Up to 14% of basic paid into NPS by your employer is tax-free in the new regime. Ask HR if your company offers it as a flexi-benefit. The money is locked until 60.

More details

Your PF by 58

Your pay rises 8% a year, and PF with it. EPF interest and the payout at 58 are tax-free, though interest on your own PF above ₹2.5 lakh a year is taxed. If you're in the EPS pension scheme, ₹1,250 a month of your employer's share goes there instead.

Old or new regime?

New regime · lower tax₹87,799/mo
  • In hand₹12.04 L
  • Saved for later₹2.16 L
  • Tax₹80,332
Old regime₹85,724/mo
  • In hand₹11.79 L
  • Saved for later₹2.16 L
  • Tax₹1.05 L
Your deductions ₹3.92 L
  • New regime wins
  • Old regime wins

Deductions beyond the standard deduction: HRA exemption, 80C (your PF counts), 80D, home-loan interest and professional tax. The old regime needs ₹5.12 L to break even.

Your income, slab by slab

New regime
  • Up to ₹4 L
    0% · ₹0
  • ₹4 L – ₹8 L
    5% · ₹20,000
  • ₹8 L – ₹12 L
    10% · ₹40,000
  • ₹12 L – ₹16 L
    15% · ₹14,839
  • ₹16 L – ₹20 L
    20% · ₹0

Taxable income ₹12.99 L · slab tax ₹74,839 + cess ₹2,994 = ₹77,832

Taxable income is gross salary minus ₹75,000 of deductions (the standard deduction). In the old regime you'd pay ₹1.03 L.

Next stepPlan a budget on ₹87,799 a monthSee where your in-hand pay goes, against the 50/30/20 rule.

How it's calculated

A typical Indian salary structure, built from your CTC:

  • Basic is your chosen share of CTC. HRA is 50% of basic in a metro, 40% elsewhere. Special allowance takes whatever is left.
  • Your employer's PF (12% of basic), gratuity (4.81% of basic) and any employer NPS are part of CTC but never reach your payslip.
  • Deducted each month: your own 12% PF, professional tax of ₹2,500 a year, and income tax (TDS).
  • New regime (Budget 2025): ₹75,000 standard deduction; slabs of 0/5/10/15/20/25/30% in ₹4 lakh steps; no tax up to ₹12 lakh of taxable income thanks to the 87A rebate, with marginal relief just above it.
  • Old regime: ₹50,000 standard deduction, HRA exemption, 80C up to ₹1.5 lakh (your PF counts), 80D, home-loan interest up to ₹2 lakh and professional tax; slabs of 0/5/20/30%.

4% cess applies to all tax, and surcharge above ₹50 lakh. Variable pay is taxed at your top rate when it's paid. Employer structures vary, so check your offer letter for the exact split.

Tax figures follow Budget 2025 rules, for FY 2025-26 onward.

Common questions

How is in-hand salary calculated from CTC?
Take CTC, remove what your employer pays on your behalf (their PF share, gratuity, NPS) to get gross salary. Then subtract your own PF, professional tax and income tax. Variable pay arrives once a year, so monthly in-hand is lower than CTC ÷ 12 by more than tax alone.
Is salary up to ₹12 lakh tax-free?
In the new regime, taxable income up to ₹12 lakh pays no tax because of the Section 87A rebate. With the ₹75,000 standard deduction, that's a gross salary of up to ₹12.75 lakh. Just above the limit, marginal relief keeps your tax from exceeding the income above ₹12 lakh.
Which tax regime is better for me?
The old regime only wins if your deductions are large: HRA on a high rent, a full 80C, health insurance and home-loan interest. This calculator shows the deductions you'd need to break even; for most salaries without a home loan, the new regime leaves more in hand.
Why does a higher basic lower my in-hand pay?
PF is 12% of basic from you and 12% from your employer out of the same CTC. A higher basic means more goes into PF and less into your monthly pay, though it's still your money, growing tax-free in EPF.
What is the employer NPS benefit?
Your employer can pay up to 14% of basic into your NPS in the new regime (10% in the old) and it's not taxed. If your company offers it as a flexi-benefit, moving part of your salary there cuts your tax, but the money is locked until 60.
Where do I enter my home loan?
Put the interest you paid in a year under home-loan interest (Section 24(b), up to ₹2 lakh) and the principal you repaid under home-loan principal, which counts inside the ₹1.5 lakh 80C limit with your PF and other investments. Your bank's yearly interest certificate shows both. Both only matter in the old regime.