How in-hand salary is worked out
In-hand = CTC − employer PF − your PF − professional tax − income tax
New regime (FY 2026-27)
Up to ₹4 lakh 0%, ₹4-8 lakh 5%, ₹8-12 lakh 10%, ₹12-16 lakh 15%, ₹16-20 lakh 20%, ₹20-24 lakh 25%, above ₹24 lakh 30%, plus 4% cess. Salaried people get a ₹75,000 standard deduction, and the 87A rebate makes tax zero up to ₹12 lakh of taxable income, so a salary up to about ₹12.75 lakh pays no income tax. Just above ₹12 lakh, marginal relief caps the tax at the income above ₹12 lakh.
Old regime
Up to ₹2.5 lakh 0%, ₹2.5-5 lakh 5%, ₹5-10 lakh 20%, above ₹10 lakh 30%, with a ₹50,000 standard deduction and deductions such as 80C (up to ₹1.5 lakh), 80D and HRA.
Example: ₹12 lakh CTC with 50% basic gives about ₹87,800 a month in hand under the new regime, with zero income tax.
Frequently asked questions
New or old regime?
If your total deductions (80C, 80D, HRA, home loan interest) are large, the old regime can be cheaper; for most salaried people the new regime costs less. The calculator shows both.
What is professional tax?
A state tax, at most ₹2,500 a year in most states. Some states, such as Delhi, do not levy it; enter 0 then.
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