From gross salary to net in-hand

Gross salary is your total earnings before any deductions. Net salary (also called take-home or in-hand) is what remains after employee PF, professional tax, income tax, and any other deductions. Net salary is what lands in your bank account each month.

It depends on your income and chosen regime. Under the new regime for FY 2025-26, tax is zero up to ₹12.75L taxable income (salaried). Above that, tax is computed on slabs of 5%, 10%, 15%, 20%, 25%, and 30% plus 4% cess. Under the old regime, slabs start at ₹2.5L with a 5% rate.

Employee PF is 12% of your basic salary, not your gross. The deduction is then subtracted from gross to arrive at net. If basic exceeds ₹15,000/month, the PF is often capped at ₹1,800/month (12% of ₹15,000) — many companies use this cap.

Professional tax is a state-level tax on income, deducted by your employer and paid to the state government. It's typically ₹200/month (₹2,400/year) in most states. Delhi, Haryana, and UP don't levy professional tax.

Yes — often significantly. The new regime gives lower slabs and a higher standard deduction. The old regime allows deductions (80C, 80D, HRA, home loan interest). For most salaried taxpayers with deductions under ₹5L, the new regime delivers a higher net salary. With large HRA + home loan claims, the old regime can win.

Because of PF, professional tax, and especially income tax. For a ₹12L gross salary under the new regime, the net is usually around ₹90,000–₹93,000 per month — about 90%–93% of gross. At higher incomes (₹20L+), the net ratio drops to 78%–85% because of higher tax slabs.

It's a benefit — not a loss. Your employee PF (12% of basic) goes into your EPF account and earns tax-free interest (~8.25% currently). Your employer contributes an equal amount. You can withdraw it at retirement or under specific conditions (medical emergency, home purchase, etc.).

Lower basic = lower PF = higher net. Higher basic = higher PF = lower net but larger retirement corpus. Most companies keep basic at 40%–50% of gross. Some offer 30%–35% to boost take-home, but this reduces PF savings and gratuity.

Yes. A bonus increases your annual gross, which increases your TDS for that month. Some employers spread the tax impact across remaining months; others deduct it entirely in the bonus month. Your bonus-month net may be surprisingly low if the TDS is front-loaded.

Besides PF, PT, and tax: voluntary insurance premiums (health, term), meal card deductions, canteen charges, loan EMI recovery, salary advance recovery, and union subscriptions. These vary by employer and are usually listed on your payslip.

It uses the FY 2025-26 slabs, standard deduction, surcharge, cess, and rebate rules. Actual numbers may vary based on your specific salary structure, employer policies, and any investments not accounted for. Use it as a close estimate and check your payslip for exact figures.

Yes. Surcharge applies on income above ₹50L (10%), ₹1Cr (15%), ₹2Cr (25%), and ₹5Cr (37% old / 25% new). Marginal relief is applied to prevent sharp tax jumps. Both surcharge and cess are included in the net calculation.

Yes. Under the new regime, taxable income up to ₹12L gets a full rebate up to ₹60,000, making the tax effectively zero. Under the old regime, the rebate is up to ₹12,500 for taxable income up to ₹5L. Marginal relief is applied just above the thresholds.

Yes — three main levers: (1) switch to the correct regime, (2) restructure your CTC to maximise tax-free components (LTA, meal cards, telephone — old regime), (3) increase employer NPS contribution (80CCD(2)) which is deductible under both regimes up to 10% of basic.

HRA exemption is only available under the old regime. If you pay rent, the exempt amount is the least of: (a) actual HRA received, (b) 50% of basic (metro) or 40% (non-metro), or (c) rent paid minus 10% of basic. For many renters in metros, HRA exemption alone is ₹1.5–₹3L.

Other income is taxable but isn't deducted from your salary by your employer. Enter it in the "Other income" field above — it will be added to your gross for tax computation. Your employer's TDS won't cover this, so you may owe tax at filing (or pay advance tax).

Use gross salary, not CTC. CTC includes employer PF and gratuity, which never reach your salary. If you only know your CTC, use the CTC to In-Hand Calculator first to derive your gross salary, then come back here.

Usually, yes — once TDS is set, monthly net is consistent. Exceptions: the month a bonus is paid (higher TDS that month), the month you submit investment declarations (TDS recalculated for remaining months), and the final month of the financial year (adjustment for any shortfall).

ESI (Employees' State Insurance) applies only if your gross monthly salary is up to ₹21,000. Employee contribution is 0.75% of gross; employer contributes 3.25%. If you earn above ₹21,000/month, ESI doesn't apply. This calculator doesn't include ESI — add it as "Other deduction" if applicable.

Yes, but at different amounts. New regime: ₹75,000. Old regime: ₹50,000. It's applied automatically to salary income, and it's one reason the new regime often delivers a higher net.

Toggle off "Salaried employee" in the calculator. Then no standard deduction applies, and there's no TDS from an employer. You'd pay advance tax quarterly. The tax computation (slabs, cess, surcharge, rebate) remains the same. Note: 44ADA presumptive taxation may apply for some professions.

If basic is above ₹15,000/month and your employer uses the ₹1,800 cap, employee PF is only ₹21,600/year — not 12% of your actual basic. This raises your net salary (lower deduction) but also lowers your retirement corpus. Some employers contribute on full basic, which reduces net but boosts PF.

Yes — under the old regime, your employee PF contribution counts toward the ₹1.5L limit of Section 80C. So if you're already contributing ₹21,600 through PF, you only need ₹1,28,400 more to reach the cap (via ELSS, PPF, life insurance, etc.).

Budget around your net salary, not gross. Your monthly expenses should fit within net, and your savings should be planned from net. Remember that PF is part of your savings even though it doesn't hit your bank — count it in your net worth, not in your monthly cash flow.

No — employer PF and gratuity are not part of gross salary (they're part of CTC). This calculator converts gross salary (basic + HRA + allowances) into net. If you need the CTC → gross conversion, use the CTC to In-Hand Calculator.

Salary arrears and one-time payments are taxed in the year they're received — sometimes pushing you into a higher slab and increasing tax significantly. You can claim relief under Section 89 for arrears spread over prior years. Enter the amounts as "Other income" to see the impact.

Reimbursements (phone, internet, meal cards, fuel) are typically tax-free up to limits, so they boost net more than an equivalent increase in taxable salary — but only under the old regime. Under the new regime, most allowances are fully taxable. Factor in what's actually available in your CTC.

The calculator uses the FY 2025-26 slabs, standard deductions, surcharge rates, rebate thresholds, and cess. When the government announces changes in the Union Budget (usually February), the slabs and rebate limits would need to be updated in the underlying code. For the current year, the numbers are accurate.

No. Everything runs in your browser. Nothing is uploaded, tracked, or stored. Your salary figures never leave your device. If you want to keep a record, download the PDF or take a screenshot.