Free · No login · FY 2025–26 tax slabs
Payroll Calculator India — CTC to In-Hand with Full Statutory Breakdown
Enter your CTC and salary structure. Get exact in-hand salary after EPF, ESI, Professional Tax, HRA, LTA, and income tax — monthly and annual, instantly.
How Indian Payroll Calculation Works
Indian payroll converts CTC to in-hand salary through three deduction layers: statutory contributions (EPF, ESI), professional tax, and income tax. Most salaried employees receive 60–75% of CTC as take-home — the gap depends primarily on tax bracket and EPF structure.
The salary structure matters as much as the total. A higher Basic percentage increases EPF contributions and HRA exemption potential but also raises income tax liability since Basic salary stays fully taxable. Many mid-level employees negotiate lower Basic and higher Special Allowance to minimize EPF deductions, particularly when they prefer directing their own PF-equivalent into equity mutual funds.
For FY 2025–26: the New Tax Regime offers a standard deduction of ₹75,000 and a rebate under Section 87A up to ₹60,000 — making income up to ₹12 lakh effectively tax-free for most salaried individuals. The Old Regime remains valuable primarily for those with large 80C investments, HRA exemption claims, and home loan interest deductions above ₹2 lakh.
Why does in-hand salary differ from what my offer letter shows?
Offer letters state CTC, which includes employer EPF contributions and sometimes gratuity provisions. Actual gross salary excludes these employer-side costs. Then employee-side EPF, professional tax, and income tax TDS reduce gross to in-hand. A ₹12 LPA CTC commonly produces ₹80,000–₹88,000 monthly in-hand depending on structure and city.
New Regime vs Old Regime — which saves more tax?
The New Regime wins for most employees with CTC below ₹15 LPA without large deductions. The Old Regime outperforms when 80C investments hit ₹1.5L, HRA exemption claims run substantial (metro cities, high rent), and home loan interest deductions apply. Toggle the tax regime selector above to compare your specific numbers.
What is the EPF wage ceiling and how does it affect salary?
EPF employee contribution runs at 12% of Basic salary. For statutory EPF, the employer contribution caps at ₹1,800/month (12% of ₹15,000 wage ceiling). Many companies apply EPF on actual Basic — check your offer letter. Employees earning above the ceiling can opt for higher voluntary PF contributions, which qualify for 80C deductions under the Old Regime.
Who pays Professional Tax and can it be avoided?
Professional Tax runs as a state-level levy deducted by the employer and remitted to the state government. Employees working in PT-applicable states (Maharashtra, Karnataka, Tamil Nadu, West Bengal, AP/Telangana, among others) cannot avoid it. PT itself qualifies as a deduction under Section 16 in the Old Regime.
