Question 1

How is take-home in-hand salary calculated from annual CTC?

Accepted Answer

This calculator starts from the annual CTC you enter and takes out employer PF (if it sits inside your CTC) and any other employer-side items such as gratuity or insurance. From that gross salary it takes out Employee PF (12% of basic), professional tax and the income tax for the year, under the New and the Old regime side by side, then divides the annual take-home by 12. It is an estimate, not a payslip, so check the figures against your offer letter.

Question 2

What is the standard deduction for salaried employees for FY 2025-26 & TY 2026-27?

Accepted Answer

Under the New Tax Regime (Section 202 of Income-tax Act 2025 / Section 115BAC of 1961 Act), the standard deduction is ₹75,000 or the salary, whichever is less. Under the Old regime it is ₹50,000 or the salary, whichever is less. This calculator shows both regimes.

Question 3

How is the HRA exemption calculated, and does this calculator apply it?

Accepted Answer

It applies it in the Old regime only, when you enter rent and HRA received under More options. The HRA exemption is not available under the New Tax Regime. Rule 279 of the Income-tax Rules, 2026 gives the least of (1) the allowance actually received, (2) rent paid less one-tenth of salary, or (3) 50% of salary in Mumbai, Kolkata, Delhi, Chennai, Hyderabad, Pune, Ahmedabad and Bengaluru (40% anywhere else). Here salary means basic; dearness allowance is assumed nil.

In-Hand Salary Calculator