Take-Home Salary Calculator
Calculate take-home salary from CTC after PF, HRA exemption, and professional tax under old regime. Get monthly in-hand pay and annual breakdown with charts.
About This Calculator
The Take-Home Salary Calculator (India) helps salaried employees understand the difference between their CTC (Cost to Company) and the net amount credited to their bank account each month. Enter your monthly CTC, HRA component, monthly rent, PF percentage, and professional tax to get an accurate, detailed calculation of your in-hand salary under the old tax regime.
This calculator uses the old tax regime of the Indian Income Tax Act with a standard deduction of ₹50,000 and computes HRA exemption under Section 10(13A) based on your monthly rent and city type (metro or non-metro). The formula for in-hand salary is: Monthly CTC minus (PF contribution + Professional Tax + Income Tax). HRA exemption and standard deduction reduce your taxable income without affecting the gross salary you receive.
How HRA Exemption Is Calculated
Under Section 10(13A), HRA exemption is the minimum of three amounts: (a) Actual HRA received, (b) 50% of basic salary for metro cities or 40% for non-metro cities, and (c) Actual rent paid minus 10% of basic salary. The exempted amount reduces your taxable income, and any HRA received beyond this exemption is fully taxable.
Key Deductions:
- PF (Provident Fund): 12% of basic salary (basic assumed as 50% of CTC)
- HRA Exemption: Minimum of actual HRA, 50%/40% of basic (metro/non-metro), or rent paid minus 10% of basic
- Standard Deduction: ₹50,000 flat deduction for salaried employees under old regime
- Professional Tax: State-level tax, varies from ₹100 to ₹300 per month (max ₹2,500 annually)
- Income Tax: Calculated on taxable income using old regime slabs with 4% health and education cess
Tax Slabs (Old Regime FY 2025-26):
- Up to ₹2.5 lakh: Nil
- ₹2.5 lakh to ₹5 lakh: 5% (rebate of ₹12,500 under Section 87A)
- ₹5 lakh to ₹10 lakh: 20%
- Above ₹10 lakh: 30%
Who Should Use This Calculator?
This calculator is ideal for Indian salaried employees who want to negotiate their salary, compare job offers, or simply understand their tax deductions. It is especially useful during annual appraisals, job switches, and financial planning. Note that this calculator uses the old tax regime; taxpayers who have opted for the new regime under Section 115BAC may get different results.
Frequently Asked Questions
What is take-home salary?
Take-home salary, also known as in-hand salary, is the amount you receive after all deductions from your CTC (Cost to Company). This includes deductions like PF (Provident Fund), professional tax, income tax, and other deductions. It is the net amount credited to your bank account each month.
How is take-home salary calculated?
Take-home salary is calculated by subtracting all deductions from your gross monthly CTC. Common deductions include: Employee PF contribution (typically 12% of basic salary), professional tax (varies by state, typically ₹200/month), income tax as per applicable slab, and HRA exemption is calculated to reduce tax. The formula is: In-Hand Salary = Monthly CTC - (PF + Professional Tax + Income Tax).
What is HRA exemption and how is it calculated?
HRA (House Rent Allowance) exemption under Section 10(13A) of the Income Tax Act is the minimum of three components: (a) Actual HRA received from your employer, (b) 50% of basic salary for metro cities or 40% for non-metro cities, and (c) Actual rent paid minus 10% of basic salary. Enter your monthly rent in this calculator to get the most accurate HRA exemption. If you live rent-free or pay no rent, the exemption is limited to component (b).
What is the difference between CTC and take-home salary?
CTC (Cost to Company) is the total cost incurred by the employer including salary, benefits, and employer PF contributions. Take-home salary is the net amount you receive in your bank account after all deductions. CTC typically includes basic salary, HRA, allowances, bonuses, gratuity, employer PF, and insurance premiums.
How much PF is deducted from salary?
Under the EPF Act, the employee contributes 12% of basic salary plus dearness allowance towards PF. The employer also contributes 12% (8.33% goes to EPS and 3.67% to EPF). You can opt to contribute more through VPF (Voluntary PF). The PF deduction helps build your retirement corpus.
What is professional tax?
Professional tax is a state-level tax levied on salaried employees and professionals. The amount varies by state, ranging from ₹100 to ₹300 per month. Some states like Delhi, Haryana, and Punjab do not levy professional tax. The maximum annual professional tax in India is ₹2,500.
How does income tax affect take-home salary?
Income tax is deducted at source (TDS) by your employer based on the tax regime you choose. Under the old regime, you can claim deductions like 80C, 80D, and HRA to reduce taxable income. The tax is calculated on your taxable income after all deductions, and 4% health and education cess is added.
Can I increase my take-home salary?
Yes, you can optimize your take-home salary by: claiming HRA exemption with proper rent receipts, investing in tax-saving instruments under Section 80C, getting health insurance under 80D, and choosing the right tax regime (old vs new). Some employers also allow restructuring of salary components to reduce tax liability.