In-Hand Salary Calculator India
Calculate exact monthly take-home salary from your Annual Cost to Company (CTC) with EPF, Professional Tax, ESI, and New vs. Old Tax Regime rules.
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Frequently Asked Questions on In-Hand Salary Calculation
What is the difference between CTC and In-Hand Salary?
Cost to Company (CTC) is the total annual expenditure an employer spends on an employee, including basic salary, allowances, employer PF contribution, gratuity provision, and medical insurance. In-Hand Salary is the actual net amount credited to the employee's bank account each month after deducting employee PF (12%), Professional Tax, ESI, and Income Tax (TDS).
Why is income tax zero for annual CTC up to ₹7,75,000 under the New Tax Regime?
Under the New Tax Regime (Section 115BAC), individuals receive a standard deduction of ₹75,000 for salaried employees. Furthermore, under Section 87A, a full tax rebate is provided for taxable income up to ₹7,00,000. Hence, an employee with a gross CTC of ₹7,75,000 pays zero income tax.
How does Professional Tax (PT) affect monthly in-hand salary?
Professional Tax is deducted by employers and remitted to state governments. In major states like Maharashtra, Karnataka, and West Bengal, the standard deduction is ₹200/month (with ₹300 in February for Maharashtra), subject to an annual statutory ceiling of ₹2,500.