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Indian Salary Suite

Net Salary Calculator — Calculations & Slabs for FY 2026-27

Enter your CTC to compute your in-hand take-home salary after all deductions -- PF, ESI, professional tax, and income tax -- under the new and old tax regimes.

1. Your Salary Details

CTC vs Gross vs Net Salary — What's the Difference?

CTC is what your employer spends on you — it is the biggest number and the one on your offer letter. It includes your in-hand salary, the employer's provident fund share (12% of basic), gratuity provision (4.81% of basic), and any other perquisites like insurance or meal cards.

Gross Salary

Gross salary is what appears on your payslip before deductions. It equals CTC minus the employer's EPF contribution and gratuity provision. Gross salary includes your basic, HRA, special allowance, and other allowances. This is the figure your TDS is calculated on.

Net or Take-Home Salary

Net salary = Gross salary − Employee EPF (12% of basic) − Professional Tax − Income Tax TDS. This is the amount that hits your bank account every month. For most salaried employees, the take-home is 60%–80% of the CTC, depending on the tax slab and EPF structure.

Frequently Asked Questions (FAQ)

What is the difference between CTC and take-home salary?

CTC (Cost to Company) is the total annual spend by your employer — it includes your salary, the employer's EPF contribution (12% of basic), gratuity provision, and any other perquisites. Your take-home is what actually reaches your bank account after removing employee EPF (12% of basic), professional tax, and income tax TDS. Many employees are surprised that their take-home is 20%–30% lower than their CTC.

How is the employer EPF contribution different from employee EPF?

Both contributions are 12% of basic salary. The employer's share comes from the CTC — it reduces your gross salary. The employee's share is deducted from your gross salary every month. So EPF effectively reduces your take-home twice from the CTC perspective — once at the CTC level and once at the deduction level.

What is professional tax and does everyone pay it?

Professional tax is a state-level tax on employment income. Maharashtra charges ₹200/month (₹2,400/year), Karnataka charges ₹200/month, and West Bengal, Andhra Pradesh, Gujarat also have their own rates. Not all states have professional tax — Delhi, Rajasthan, Uttar Pradesh, and several others do not levy it. The maximum is ₹2,500/year.

How do I calculate EPF on basic salary?

EPF is calculated at 12% of your basic salary. If your basic salary exceeds ₹15,000 per month, EPF is calculated on ₹15,000 only (capped EPF = ₹1,800/month). However, many companies voluntarily calculate EPF on the full basic salary rather than capping it. Check your payslip to confirm whether your company uses the capped or uncapped method.

Why does my take-home vary from month to month?

Your gross salary is usually fixed, but deductions can change. TDS varies if your employer makes quarterly adjustments. If you receive arrears or a bonus in a particular month, TDS is higher. LWP (loss of pay) for leave without pay reduces gross salary. Also, professional tax in some states like Maharashtra has a different rate in February vs other months.

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About This Calculator

Target Audience: Salaried taxpayers, investors & retirees planning Indian tax & wealth growth

What Does This Calculator Do?

This tool calculates your exact take-home salary every month after all deductions — EPF, professional tax, income tax TDS, and any other cuts. You type your CTC and the calculator breaks it into components, removes every mandatory deduction, and shows the final amount your bank account receives. No more guessing what your in-hand pay will be when switching jobs.

engine_type: compiled | format: inr

How to Use It

  1. Annual CTC: Type your total cost-to-company package from your offer letter.
  2. Basic Salary %: Type the percentage of CTC that is your basic pay. Most companies keep this at 40%–50%.
  3. HRA %: Type the HRA percentage (usually 40%–50% of basic for non-metros, 50% for metros).
  4. EPF Contribution: Employee's EPF is 12% of basic salary, capped at ₹1,800 per month. Toggle if your company uses actual 12%.
  5. Professional Tax: Type your state's professional tax. Maharashtra charges ₹200/month, Karnataka ₹200/month, others vary.
  6. Income Tax (TDS): Type your estimated monthly TDS deduction from your payslip or Form 16.

The Logic Explained Simply

  • The Concept: Your CTC is what the company spends on you — it includes your salary, the company's EPF share, gratuity provision, and other benefits. Your gross salary is what appears on your payslip. Your net salary is what lands in your account after the employee's EPF, professional tax, and TDS are removed. Most people confuse CTC with take-home, and this calculator ends that confusion.
  • The Formula:

Gross Salary = CTC − Employer EPF − Gratuity Provision

Net Salary = Gross Salary − Employee EPF − Professional Tax − Income Tax TDS

Real-World Calculation Breakdown

For example, annual CTC is ₹8,40,000 (₹70,000/month). Basic = 40% = ₹28,000. Employer EPF = 12% of ₹28,000 = ₹3,360. Gratuity provision = ₹1,346. Gross salary = ₹70,000 − ₹3,360 − ₹1,346 = ₹65,294. Employee EPF = ₹3,360. Professional tax = ₹200. TDS = ₹4,000. Net take-home = ₹65,294 − ₹3,360 − ₹200 − ₹4,000 = ₹57,734 per month.

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