Take-Home Pay & In-Hand Salary Calculator
Convert your annual CTC package into your actual monthly in-hand bank transfer after accounting for income tax slabs, standard deductions, and cess. Select the financial year to match the Union Budget your payslip falls under.
How it works
Your Cost-to-Company (CTC) contains various components: Basic pay, HRA, special allowances, and statutory contributions. This calculator applies the tax slab rates set by that financial year's Union Budget for the New Tax Regime (default) or Old Tax Regime to give you your net take-home salary.
Formula
Net Salary = Gross CTC - Deductions - Income Tax - Cess (4%)
Subtracts pre-tax deductions and slab-based income tax from your annual CTC, then divides by 12 to compute monthly take-home salary.
| Symbol | Variable | Unit | Description |
|---|---|---|---|
| Gross CTC | Annual Cost-to-Company compensation | ₹ | |
| Deductions | Standard deduction + EPF/80C exemptions | ₹ | |
| Income Tax | Slab-based statutory tax liability | ₹ | |
| Cess | 4% Health and Education Cess on income tax | ₹ |
Worked example
₹18,00,000 CTC under New Tax Regime (FY 2025-26)
- CTC:
- ₹18,00,000
- Financial year:
- 2025-26
- Regime:
- New Regime
- Standard Deduction:
- ₹75,000
Taxable income = ₹17,25,000. Applying FY 2025-26 New Regime slabs (0% up to 4L, 5% on 4-8L = 20k, 10% on 8-12L = 40k, 15% on 12-16L = 60k, 20% on 16-17.25L = 25k) yields base tax of ₹1,45,000 + 4% cess = ₹1,50,800 total tax. Net annual take-home is ₹15,74,200 (approx. ₹1,31,183/month).
₹12,00,000 CTC under New Tax Regime (FY 2025-26) — zero tax
- CTC:
- ₹12,00,000
- Financial year:
- 2025-26
- Regime:
- New Regime
- Standard Deduction:
- ₹75,000
Taxable income = ₹11,25,000, which is under the FY 2025-26 Section 87A rebate ceiling of ₹12,00,000 taxable income — so tax payable is ₹0 and the full ₹11,25,000 is take-home.
Limitations
Does not model employer-side variable bonus payouts or monthly flexi-benefit reimbursements. Covers FY 2024-25 and FY 2025-26 only — FY 2026-27 slabs will be added once that year's Finance Act is published.
Frequently asked questions
Which tax regime is better: New or Old?
For most employees without heavy home loan interest or high HRA claims, the New Tax Regime is simpler and offers lower effective tax with a ₹75,000 standard deduction and (from FY 2025-26) zero tax up to ₹12.75 Lakh gross salary. The Old Regime is advantageous if your total deductions (80C, 80D, HRA, home loan interest) are large enough to offset its higher slab rates — run both regimes here and compare.
Is income up to ₹12.75 Lakh tax-free in India from FY 2025-26?
Yes, under the New Tax Regime. The ₹75,000 standard deduction reduces ₹12.75 Lakh gross salary to ₹12.00 Lakh taxable income, and Section 87A gives a full rebate on taxable income up to ₹12.00 Lakh, making tax liability ₹0. This replaced the FY 2024-25 threshold of ₹7.75 Lakh gross / ₹7.00 Lakh taxable — select FY 2024-25 above to see the earlier rule.
Why is my in-hand salary lower than CTC divided by 12?
CTC includes non-cash benefits and employer deductions like Employer EPF contribution (12% of basic), gratuity provision, performance bonuses paid annually, and professional tax.
Why does this calculator only go up to FY 2025-26?
Each year's slabs come from that year's Union Budget. FY 2026-27's figures will be added once that Budget's Finance Act is published and its slabs can be sourced and verified — we don't publish estimated or guessed tax numbers.
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Last reviewed: 2026-08-23.