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Your Salary Summary
NEW REGIMEEstimated Monthly In-Hand
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How CTC is Calculated in India?
1. Gross Salary
This is your CTC minus the employer contributions like EPF and Gratuity. It includes your Basic, HRA, and Special Allowances.
2. Net Deductions
Employee Provident Fund (12% of Basic), Professional Tax (₹200 monthly in most states), and Income Tax are deducted from your Gross Salary.
3. In-Hand Salary
Also known as Net Salary. This is the final amount credited to your bank account every month. CTC ≠ Salary in hand.
Frequently Asked Questions
Is standard deduction available in the New Regime?
Yes, as of Budget 2025-26, a standard deduction of ₹75,000 is available for salaried employees under the New Tax Regime, making income up to ₹12.75 Lakh effectively tax-free.
What is Professional Tax?
Professional Tax (PT) is a state-level tax on professions and trades. In most Indian states like Maharashtra, Karnataka, and Tamil Nadu, it is capped at ₹2,500 per year (roughly ₹200/month).
Can I calculate tax for the 2025-2026 financial year?
Yes, this calculator is fully updated with the latest slabs announced for FY 2025-26 (AY 2026-27), including the revised slab limits and rebate benefits.
Is Gratuity part of my CTC?
Yes, most companies include the gratuity contribution (roughly 4.81% of basic pay) as part of your total CTC package, although you only receive it after 5 years of service.