Salary Calculator
FinanceCalculate your monthly and annual take-home salary from CTC — with EPF, professional tax, and income tax (new or old regime) broken out so you see exactly where each rupee goes.
Your take-home is gross salary minus EPF, professional tax, and TDS — switching regimes or adjusting basic % changes how much each slice takes.
What does this calculator answer?
It takes your annual CTC and breaks it down into what you actually receive every month. The three deductions that reduce your gross salary to take-home are employee EPF, professional tax, and income tax (TDS) — and the tax calculation depends on which regime you choose and which deductions you can claim.
How CTC Becomes Take-Home
Four steps, each with a number you control:
- 1.Basic and HRA come off CTC first. Basic = your chosen % of CTC (typically 35–50%). HRA = your chosen % of Basic (40% non-metro, 50% metro). These are structural — they determine EPF and HRA exemption eligibility.
- 2.Employer PF is subtracted from CTC to get Gross. The employer's PF contribution goes straight to the EPF corpus — it never hits your account. Gross salary is what you receive before your own deductions.
- 3.Three deductions reduce Gross to Net. Employee EPF (12% of basic, or capped at ₹1,800.00/month), Professional Tax (state-levied, max ₹2,500.00/year), and Income Tax (TDS based on your chosen regime and deductions).
- 4.Special Allowance absorbs the remaining gap. Whatever gross salary remains after Basic and HRA is labelled Special Allowance — it is fully taxable and has no EPF impact.
Worked Example — ₹12,00,000 CTC, Basic 40%, HRA 50%, New Regime
| Component | Monthly | Annual |
|---|---|---|
| Gross Salary | ₹98,200.00 | ₹11,78,400.00 |
| Basic Salary | ₹40,000.00 | ₹4,80,000.00 |
| HRA | ₹20,000.00 | ₹2,40,000.00 |
| Special Allowance | ₹38,200.00 | ₹4,58,400.00 |
| Employee EPF | −₹1,800.00 | −₹21,600.00 |
| Professional Tax | −₹200.00 | −₹2,400.00 |
| Income Tax (New Regime) | ₹0.00 | ₹0.00 |
| Take-Home Salary | ₹96,200.00 | ₹11,54,400.00 |
New Regime income tax is ₹0 here — taxable income (₹11,03,400.00) falls below the ₹12,00,000.00 Section 87A rebate threshold and is fully rebated. Employer PF is included in CTC; EPF deduction is capped at ₹1,800.00/month.
Frequently Asked Questions
Common Mistakes to Avoid
- Basic is calculated as a percentage of CTC — not gross salary. Offer letters say 'Basic = 40% of CTC', not '40% of gross'. Applying the percentage to gross overstates Basic and HRA, which ripples into an incorrect EPF deduction.
- CTC and gross salary are not the same number. CTC includes the employer's PF contribution (and other perquisites), which is never paid to you — it flows directly to the EPF corpus. Gross salary is what you actually receive before your own deductions.
- Choosing the wrong tax regime costs you real money. The New Regime's lower slab rates don't automatically mean lower tax if you have significant 80C, HRA exemption, or home loan deductions available under the Old Regime. Use the Income Tax calculator to compare both regimes for your specific income and deductions first.
- EPF deduction mode matters — capped vs actual. Many companies cap EPF at the statutory wage ceiling (₹15,000 basic → ₹1,800/month), which is what appears on your payslip. Companies that deduct 12% of your full basic give you higher EPF savings but a lower take-home.
References
- Employees' Provident Funds and Miscellaneous Provisions Act, 1952
- Income Tax Department, Government of India — FY 2025-26 slab rates
Last reviewed July 2026
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