HRA is partially tax-exempt under Section 10(13A). The exempt amount is the minimum of: actual HRA received, rent paid minus 10% of basic, or 50% of basic (metro) / 40% of basic (non-metro). The remaining HRA is added to taxable income.

What is professional tax?

Professional tax is a state-level tax deducted from salary. It varies by state: Maharashtra ₹200/month (₹2,400/year), Karnataka ₹200/month, Andhra Pradesh ₹200/month, West Bengal up to ₹200/month. Some states like Delhi have no professional tax.

💼 India Salary Calculator

Salary Calculator

Convert your CTC to monthly in-hand salary. Calculate HRA, PF, professional tax and income tax deductions. FY 2024-25 · Old & New regime comparison.

💰 Annual CTC

Annual CTC (₹)

₹

Total Cost to Company per year

Basic salary %

Basic is base for PF, HRA & tax

🏙️ Location & allowances

City type

HRA %

State (Prof. Tax)

Monthly rent paid (₹)

₹

For HRA exemption calculation

Other allowances / month (₹)

₹

Food, transport, special allowance

📉 Deductions

Provident Fund (EPF) Employee: 12% of basic, Employer: 12% (part of CTC)

Section 80C deductions PPF, ELSS, LIC, EPF — up to ₹1.5 lakh

NPS deduction (80CCD 1B) Additional ₹50,000 deduction — NPS contribution

Health insurance (80D) ₹25,000 self + ₹25,000 parents (senior citizen ₹50,000)

Monthly in-hand salary —

Annual: —

—Gross/mo

—Income tax/yr

—PF/mo

—% of CTC

— In-hand

Full salary breakup

📊 Old vs New tax regime comparison

Old Tax Regime

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In-hand: —

New Tax Regime

—

In-hand: —

⚠️ This is an estimate for educational purposes. Actual salary depends on your employer's salary structure, benefits and tax computation. Consult your HR or a CA for exact figures.

How is in-hand salary calculated from CTC?

CTC (Cost to Company) includes all direct and indirect costs paid by your employer. Your in-hand salary is CTC minus employer PF, minus employee deductions like PF, professional tax and income tax.

💰 CTC components

Basic (40-60% of CTC) + HRA (40-50% of basic) + Special allowance + Employer PF (12% of basic) + Gratuity provision + Other benefits. Only the monetary components paid to you form your gross salary.

📉 Deductions

Employee PF (12% of basic), Professional tax (state-specific, up to ₹2,500/yr), Income tax (as per slab after deductions). These are deducted from gross salary to give you in-hand.

🏠 HRA exemption

HRA received is partially tax-exempt — the minimum of actual HRA, rent paid minus 10% of basic, or 50/40% of basic (metro/non-metro). The exempt portion reduces your taxable income.

📊 Old vs New regime

Old regime: multiple deductions (80C, HRA, 80D, etc.) reduce tax. New regime: lower slab rates but most deductions removed. New regime is often better for lower salaries; old regime for higher salaries with many deductions.

Frequently asked questions

What percentage of CTC is in-hand salary?

Typically 70–80% of CTC becomes your in-hand monthly salary. For a ₹12 LPA CTC, in-hand is usually ₹70,000–80,000/month. The difference goes to employer PF contribution (not received as cash), employee PF deduction, professional tax and income tax.

Which tax regime is better — old or new?

New regime is generally better if you have fewer deductions. Old regime is better if you can claim ₹3.5–4 lakh+ in deductions (HRA + 80C + 80D + NPS). The break-even point varies by salary level. This calculator shows your tax under both regimes so you can compare directly.

Is employer PF part of CTC?

Yes. Employer PF contribution (12% of basic) is typically included in CTC but does NOT come to you as cash salary. It goes directly to your EPF account and is only accessible at retirement or resignation (after 5 years for tax-free withdrawal). This is why CTC and in-hand salary differ significantly.

What is the standard deduction for salaried employees?

Salaried employees get a standard deduction of ₹50,000 per year in the old tax regime (₹75,000 from FY 2024-25 in new regime). This is automatically applied before computing your taxable income — you don't need to claim it separately.