How is CTC different from take-home salary?

CTC (Cost to Company) is the total amount a company spends on an employee annually, including basic salary, HRA, allowances, PF contribution, gratuity, and any other benefits. Take-home (in-hand) salary is what you actually receive after deductions like employee PF, professional tax, income tax, and other deductions.

Which tax regime is better — old or new?

The new tax regime (2024-25) has lower tax rates but no deductions. The old regime allows deductions like HRA, 80C (₹1.5L), 80D health insurance, home loan interest, NPS (80CCD). If your total deductions exceed ₹3.75 lakh, old regime is usually better. Use this calculator to compare both and choose the lower tax option.

What is the PF deduction in salary?

Employee PF (EPF) is 12% of basic salary (capped at ₹1,800/month if basic exceeds ₹15,000). Employer also contributes 12% of basic (split into EPF and EPS). PF is deducted from gross salary to get net/take-home salary.

How is gratuity calculated?

Gratuity = (Basic Salary × 15 × Years of Service) / 26. It is payable after completing 5 years of service. Under the Payment of Gratuity Act, gratuity up to ₹20 lakh is tax-exempt.

What is the standard deduction for salaried employees?

For FY 2024-25, the standard deduction is ₹75,000 under the new tax regime and ₹50,000 under the old regime. This is automatically deducted from gross salary before computing taxable income.

Salary Calculator Online Free — CTC, Take Home, Tax, HRA

Q: How is HRA exemption calculated?

HRA exemption is the minimum of: (1) Actual HRA received, (2) 50% of basic salary for metro cities (40% for non-metro), (3) Actual rent paid minus 10% of basic salary. The exempt portion reduces your taxable income under the old regime.

💼 Salary Details

Annual CTC (₹)

₹

Annual CTC — ₹12,00,000

Basic Salary %

40%

HRA %

20%

Monthly Rent Paid (₹)

₹

City Type

Bonus / Variable (₹ Annual)

₹

Other Allowances (₹ Annual)

₹

📊 Tax Regime — FY 2024-25

80C Investments (₹) — Max ₹1,50,000

₹

80D Health Insurance (₹)

₹

Home Loan Interest 24(b) (₹)

₹

NPS 80CCD(1B) (₹) — Max ₹50,000

₹

Other Deductions (₹)

₹

📉 Deductions

🏦 PF (12%)

🏛 Prof Tax

🎁 Gratuity

🏥 ESIC

Professional Tax (₹/month)

Years of Service (Gratuity)

Additional Monthly Deductions (₹)

₹

Monthly Take-Home

₹0

—% of CTC

Annual Take-Home

₹0

Net salary per year

Total Tax

₹0

Effective rate: 0%

Gross Salary

₹0

Before deductions

HRA Exemption

₹0

Annual exempt

Total Deductions

₹0

PF + Tax + Others

💰 Salary Breakdown

Take-Home0%

Income Tax0%

PF (Emp+Empl)0%

Other Ded.0%

📋 Detailed Breakdown

Component	Annual (₹)	Monthly (₹)	% of CTC

⚖️ Old vs New Regime Comparison

📊 Tax Slab Breakdown

Income Slab	Rate	Tax on Slab	Cumulative Tax

📖 Guide

How to Use the Salary Calculator

Enter your annual CTC, adjust basic salary and HRA percentages, enter your monthly rent and city type, then choose old or new tax regime. The calculator instantly shows your monthly take-home salary, income tax, HRA exemption, PF, gratuity, and full salary breakdown.

STEP 01

Enter CTC

Type your annual Cost to Company or drag the slider. Include variable pay and bonus separately.

STEP 02

Set Components

Adjust basic salary % (typically 40-50% of CTC) and HRA % (20-50%). Enter monthly rent paid.

STEP 03

Choose Regime

Select Old Regime (with deductions) or New Regime (lower rates, no deductions). Compare both.

STEP 04

Add Deductions

Enter 80C, 80D, home loan interest, NPS for old regime. Toggle PF, professional tax, ESIC.

STEP 05

Get Breakdown

See monthly take-home, tax slab breakdown, old vs new comparison, and download salary slip.

📚 Learn

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

CTC (Cost to Company) is the total annual expense a company incurs for an employee — including basic salary, HRA, all allowances, employer PF contribution (12% of basic), gratuity provision, and any other perks or insurance. Gross Salary is the total amount earned before tax deductions — CTC minus employer PF and gratuity. Net Salary (In-Hand / Take-Home) is what hits your bank account after deducting employee PF, professional tax, income tax, and any other deductions.

Income Tax Slabs FY 2024-25 (New Regime — Default)

Income Slab	Tax Rate	Notes
Up to ₹3,00,000	0%	Nil
₹3,00,001 – ₹7,00,000	5%	Rebate u/s 87A if income ≤ ₹7L
₹7,00,001 – ₹10,00,000	10%
₹10,00,001 – ₹12,00,000	15%
₹12,00,001 – ₹15,00,000	20%
Above ₹15,00,000	30%

Standard deduction: ₹75,000 (new regime) | ₹50,000 (old regime). Rebate u/s 87A: Tax becomes NIL if taxable income ≤ ₹7,00,000 (new) or ₹5,00,000 (old). Surcharge and cess (4% Health & Education Cess) apply.

How is HRA Exemption Calculated?

HRA exemption under Section 10(13A) is the minimum of these three:

1. Actual HRA received from employer
2. 50% of Basic Salary (metro cities) or 40% (non-metro)
3. Actual Rent Paid minus 10% of Basic Salary

💡 HRA exemption only applies under the Old Tax Regime. Under the New Regime, full HRA is taxable.

PF (Provident Fund) Calculation

Employee EPF contribution = 12% of Basic Salary (capped at ₹1,800/month if basic ≤ ₹15,000). Employer EPF = 3.67% of basic + 8.33% EPS. Both contribute to your EPF corpus. Employee PF is deducted from take-home; employer PF is part of CTC. PF deduction reduces taxable income under Section 80C in the old regime.

❓ FAQ

Frequently Asked Questions

CTC is the total cost to the company — it includes your basic salary, HRA, all allowances, employer PF (12% of basic), gratuity provision, and any other benefits. Take-home is CTC minus employer PF, minus employee PF (12% of basic), minus professional tax, minus income tax, and minus any other deductions. Typically take-home is 65-80% of CTC depending on salary level and tax regime.

The new regime has lower rates but no deductions. The old regime allows HRA, 80C (₹1.5L), 80D health insurance, home loan interest, NPS (₹50K), standard deduction (₹50K). Generally: if your total deductions exceed ₹3.75 lakh the old regime is better. For most salaried employees with HRA + 80C + 80D, the old regime saves more tax. Use the Tax Comparison section above to see which is better for your specific numbers.

HRA exemption is the minimum of: (1) Actual HRA received from employer, (2) 50% of basic salary for metro cities / 40% for non-metro, (3) Actual rent paid minus 10% of basic salary. Example: Basic ₹40,000/month, HRA ₹20,000/month, rent ₹18,000, metro city. Min of ₹20,000, ₹20,000 (50% of basic), ₹14,000 (18,000 − 4,000) = HRA exempt = ₹14,000/month.

For FY 2024-25: Standard deduction is ₹75,000 under the new tax regime and ₹50,000 under the old regime. This amount is automatically deducted from your gross salary before computing taxable income. No proof is needed — it is available to all salaried employees automatically.

Gratuity = (Basic Salary per month × 15 × Years of Service) / 26. The divisor 26 represents working days per month. Gratuity is payable upon completing 5 years of continuous service. Under the Payment of Gratuity Act, gratuity up to ₹20 lakh is fully tax-exempt. Employer gratuity provision is part of your CTC.

Under Section 87A, if your net taxable income does not exceed ₹7,00,000 (new regime) or ₹5,00,000 (old regime), your income tax liability becomes NIL. The rebate is equal to the actual tax payable — so effectively zero tax. This makes the new regime very attractive for incomes up to ₹7.75 lakh (₹7L + ₹75K standard deduction).

Yes. Professional tax paid is deductible from gross salary under both old and new tax regimes under Section 16(iii). The maximum professional tax is ₹2,500 per year. It varies by state — Maharashtra and Karnataka charge the maximum ₹200/month, while some states charge less or nothing.

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