In Hand Salary
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Get an accurate estimate of in hand salary based on your CTC, deductions, and tax regime choices.
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Frequently Asked Questions about in-hand salary calculator
What is Salary and it’s components?
Salary is a fixed amount of money or compensation paid to an employee by an employer in return for work performed. It is usually paid at the end of each month.
The salary components vary with different employers. Below is a list of the most common salary components.
Basic Salary: It is a fixed base part of an individual’s compensation package. Basic Salary is taxable & usually 35-50% of the total gross salary. However, it is usually determined by taking an employee’s designation, experience & industry of work into account.
House Rent Allowance (HRA): It is a monetary benefit given to employees by companies for expenses related to rented accommodation. It is a fully taxable component if you do not stay in rented property.
Leave Travel Allowance (LTA): It is a type of allowance which is provided by the employer to his employee who is travelling on leave from work to cover his travel expenses. LTA is an important component of the salary of the employee as it is eligible for income tax exemption as per the Income Tax Act, 1961.
Special Allowance: Special allowance is a fixed amount that is given to employees over and above the basic salary in order to meet certain requirements. It is a fully taxable component of your salary.
Bonus: It is a performance based incentive given to the employee by their employer. The entire bonus amount is fully taxable.
Employee provident fund: It is an investment made by both the employer and employee. Each contributes 12% of the employee’s basic salary towards EPF. The lump-sum amount of this acts as an employee's retirement benefits scheme. Contribution is available for a deduction under Section 80C of the Income Tax Act, 1961.
Professional Tax: It is the tax levied and collected by the state governments in India. It is a direct tax and the maximum amount payable per year is INR 2,500.
What is the difference between CTC and In-hand salary?
Cost to company represents the amount an employer spends to hire an employee annually while in-hand salary is the amount an employee receives after applicable deductions. These deductions include Employees Provident fund (EPF), Income tax, Professional tax and other benefits. This means that an employee’s CTC will be usually higher than their In-hand salary.What is a Salary Calculator?
The salary calculator or take home salary calculator is a tool that calculates your in-hand salary based on the Cost To Company (CTC) or total salary package after all taxation and deductions.
How to use the AmbitionBox salary calculator?
The AmbitionBox Salary Calculator calculates in-hand or take-home salary instantly.To use the AmbitionBox Salary Calculator, follow below steps.
- Enter company name, designation and your yearly cost to the company or the CTC.
- Select the tax regime based on your preference.
- Once you submit all the required details, It will instantly calculate and display your take home monthly salary along with other components such as basic salary, HRA, professional tax, EPF and income tax.
- You can edit/update all the information and take home salary will be updated instantly.
How does AmbitionBox salary calculator calculate the monthly in hand salary?
Take-Home Salary is the total salary that an employee gets after all necessary deductions are made.
Understand from below how AmbitionBox salary calculator exactly calculates the in-hand or take home salary.
Step 1. Start with calculating the Gross Salary: Gross salary is not your basic salary nor your CTC. It is obtained by subtracting the Employer's contribution to Provident Fund (EPF) and Gratuity from Cost to Company (CTC).
Gross Salary = Cost to Company (CTC) - Employer's PF Contribution (EPF) - Gratuity
Gratuity calculation: Gratuity = (Basic salary + Dearness allowance) × 15/26 × No. of Years of Service
We can assume dearness allowance to be zero as it is a cost of living adjustment allowance paid to Government employees, Public sector employees (PSU) and pensioners in Pakistan, Bangladesh, and India. Dearness Allowance is calculated as a percentage of an Indian citizen's basic salary to mitigate the impact of inflation on people.
The gratuity that is subtracted every year is = 15/26 x Basic Salary (Monthly) X 1
Step 2. Then calculate the Taxable Income: Taxable income is obtained by subtracting Tax-free Allowance, House Rent Allowance (HRA), Leave Travel Allowance (LTA) Professional Tax, Medical Insurance, Tax Saving Investments.
Taxable Income = Gross Salary - Employees PF Contribution(PF)/PPF investment - Tax free Allowance - HRA - LTA - Medical Insurance - Tax. Saving Investments - Other Deductions
HRA that can be exempted is calculated as the minimum of three values:
The amount received as the HRA from the employer. Actual rent paid minus 10% of the basic salary. 50% of the basic salary if staying in a metro city and 40% in a non-metro city
Step 3. Calculate Income Tax: Calculate Income tax by applying one of the below Income Tax Slabs and rates. Individuals have options to choose from 3 different Tax Slabs and Rates.
Select any of the three options of Income Tax Slabs and rates which are just mentioned below:
Option-1 Old Tax Regime
Option-2 New tax regime (pre budget announcement on 1 Feb 2025) for Financial year 2024-25
Option-3 New tax regime (post budget announcement on 1 Feb 2025) for Financial year 2025-26
Step 4. Now, calculate the Take Home Salary: Use the below formula for the same. Professional tax varies from state to state. It is not very significant. And hence we approximate it to 200 per month. The maximum Professional tax possible in a year is 2500.
What is the income tax slab for Financial Year 2025-26 (or Assessment year 2026-27) as per new tax regime?
New tax regime (post budget announcement on 1 Feb 2025) for Financial year 2025-26
Income Tax Slab for FY 2025-26 is as follows:
| Income Slab | Tax Rate |
|---|---|
| Upto 4,00,000 | Nil |
| From Rs.4,00,001 to Rs.8,00,000 | 5% + Cess |
| From Rs.8,00,001 to Rs.12,00,000 | 20,000 + 10% of (Taxable income - Rs.8 lakh) + Cess (Rs.25,000 rebate will be available to individuals who have an income of up to Rs.8 lakh under Section 87A of the Income Tax Act, 1961) |
| From Rs.12,00,001 to Rs.16,00,000 | 60,000 + 15% of (Taxable income - Rs.12 lakh) + Cess |
| From Rs.16,00,001 to Rs.20,00,000 | 1,20,000 + 20% of (Taxable income - Rs.16 lakh) + Cess |
| From Rs.20,00,001 to Rs.24,00,000 | 2,00,000 + 25% of (Taxable income - Rs.20 lakh) + Cess |
| Income above Rs 24,00,001 | 3,00,000 + 30% of (Taxable income - Rs.24 lakh) + Cess |
15% of income tax where total income exceeds Rs. 1,00,00,000. *In 2019, Govt has proposed to levy surcharge of 25% on those having taxable income of more than Rs 2 Cr upto 5 Cr.
Cess: - 4% of taxable income.
Exemptions: - Standard deduction of Rs.75,000 remains unchanged in the new tax regime for FY 2025-26.
What is the income tax slab for Financial Year 2024-25 (or Assessment year 2025-26) as per new tax regime?
New tax regime for Financial year 2024-25
Income Tax Slab for FY 2024-25 is as follows:
| Income Slab | Tax Rate |
|---|---|
| Upto 3,00,000 | Nil |
| From Rs.3,00,001 to Rs.7,00,000 | 5% + Cess |
| From Rs.7,00,001 to Rs.10,00,000 | 20,000 + 10% of (Taxable income - Rs.7 lakh) + Cess (Rs.25,000 rebate will be available to individuals who have an income of up to Rs.7 lakh under Section 87A of the Income Tax Act, 1961) |
| From Rs.10,00,001 to Rs.12,00,000 | 50,000 + 15% of (Taxable income - Rs.10 lakh) + Cess |
| From Rs.12,00,001 to Rs.15,00,000 | 80,000 + 20% of (Taxable income - Rs.12 lakh) + Cess |
| Income above Rs 15,00,001 | 1,50,000 + 30% of (Taxable income - Rs.15 lakh) + Cess |
15% of income tax where total income exceeds Rs. 1,00,00,000. *In 2019, Govt has proposed to levy surcharge of 25% on those having taxable income of more than Rs 2 Cr upto 5 Cr.
Cess: - 4% of taxable income.
Exemptions: - Standard deduction of Rs.50,000 has been hiked to Rs.75,000 in the new tax regime FY 2024-25.
Any individual opting to be taxed under the new tax regime will have to give up certain exemptions and deductions.
Here is the list of exemptions and deductions that a taxpayer will have to give up while choosing the new tax regime.
- House Rent Allowance (HRA)
- Leave Travel Allowance
- Conveyance
- Relocation allowance
- Children education allowance
- Standard deduction
- Interest on housing loan (Section 24)
- Daily expenses in the course of employment
- Helper allowance
- Other special allowances [Section 10(14)]
- Professional tax
- Chapter VI-A deduction (80C,80D, 80E and so on) (Except Section 80CCD(2) and 80JJA)
What is the income tax slab for Financial Year 2024-25 (or Assessment year 2025-26) as per old tax regime?
Income tax slab as per old tax regime
Income Tax Slab for FY 2024-25 is as follows:
| Income Slab | Tax Rate |
|---|---|
| Upto 2,50,000 | Nil |
| From Rs 2,50,001 to Rs 5,00,000 | 5% + Cess (Rs. 12,500 rebate will be available to individuals who have and income of up to Rs.5 lakh under Section 87A of the Income Tax Act,1961) |
| From Rs 5,00,001 to Rs.10,00,000 | 12,500 + 20% of (Taxable income - Rs.5 lakh) + Cess |
| Income from Rs 10,00,001 - 50,00,000 | 1,12,500 + 30% of (Taxable income - Rs.10 lakh) + Cess |
15% of income tax where total income exceeds Rs. 1,00,00,000. In 2019, Govt has proposed to levy surcharge of 25% on those having taxable income of more than Rs 2 Cr upto 5 Cr.
Cess: - 4% of taxable income.
What is the difference between CTC & Take Home Salary?
CTC is simply “Cost to Company” i.e. in the total calculation of salary package including all monetary & non-monetary benefits spent on an employee by the company without any tax deductions.
What is Gratuity? When can you avail it?
Gratuity is defined as a monetary benefit given by an employer to his/her employee in return for the services rendered by him/her. Eligibility to receive gratuity is dependent on the fact that a person should have completed at least 5 years in an organisation. However, gratuity can be paid before completion of 5 years only in case of death of an employee or incase he/she becomes disabled due to an accident or disease.How much contribution is mandatory from an Employer towards Employees Provident Fund?
Under the scheme, Employees' Provident Funds and Miscellaneous Provisions Act, 1952, an employee contributes a certain amount towards EPF on monthly basis & an equal contribution should be made from the employer's end.
Case 1: If your basic salary < 15000 (per month)
Contribution: 12% of the basic salary
Contribution: In this case the company has an option to either contribute 12% of 15,000 (i.e. 1800) or 12% of Basic salary.
What is VPF? What is the maximum that an employee can contribute towards VPF?
Voluntary Provident Fund or VPF is a provident fund scheme wherein an employee can contribute the desired portion of his/her salary towards EPF account. However, it should be noted that this is a voluntary scheme & Employers are not bound to pay the same amount towards Employees Provident Fund under this scheme.
What is HRA? How much tax is exempted on HRA?
HRA or House Rent Allowance is simply a monetary benefit given to employees by companies for expenses related to rented accommodation.
The minimum tax-exempt portion of HRA received will be calculated based on the following rules:
- The actual rent that is paid should be less than 10% of the basic salary.
- In case you’re staying in a metro, 50% of the basic salary and 40% if you live in a non-metro city.
- Actual HRA component of your salary.
What is the formula for salary calculation?
Take Home Salary = Gross Salary - Income Tax - Employee's PF Contribution(PF) - Prof. Tax.
Gross Salary = Cost to Company (CTC) - Employer's PF Contribution (EPF) - Gratuity.
Gratuity = (Basic salary + Dearness allowance) × 15/26 × No. of Years of Service.
Which Tax Regime should be chosen?
There is no specific answer to it. Taxpayers should assess the benefits from the old tax regime and new tax regime before choosing the one that works better.
What is a marginal tax relief?
Marginal tax relief is the relief provided by the income tax department when a person's income is marginally above the tax-free limit. For FY 2025-26, the tax-free income limit is ₹12 lakh. With marginal relief, a taxpayer will not have to pay full tax when his/her income is just a little over ₹12 lakh.
Let's see how much tax one has to pay with or without marginal relief on incomes of ₹12.1 lakhs, ₹12.5 lakhs, and ₹12.7 lakhs.
The marginal relief will not apply to income over ₹12.75 lakh.
| Income | Tax payable without marginal relief | Tax payable with marginal relief |
|---|---|---|
| Rs 12,10,000 | Rs 61,500 | Rs 10,000 |
| Rs 12,50,000 | Rs 67,500 | Rs 50,000 |
| Rs 12,70,000 | Rs 70,500 | Rs 70,000 |
| Rs 12,75,000 | Rs 71,250 | Rs 71,250 (No relief) |
What is the difference between Financial and Assessment Year?
Since income can’t be taxed before it's earned, so the terms financial year & assessment year were coined. A financial year is the time period wherein income is earned, the assessment year is the following year where tax evaluation is done for the income earned in the previous financial year.
What is the in hand salary of 10 Lakhs package?
A 10 Lakh package in India typically translates to an "in-hand" salary of around ₹ 70,000 - ₹ 75,000 per month after considering deductions like professional tax, EPF contributions, and income tax, depending on the specific breakdown of the CTC and the tax regime chosen (old or new).
What is the in hand salary of 12 Lakhs package?
For a 12 Lakh package, the in-hand salary would be approximately around 80-85 thousand rupees per month after deductions for taxes, PF contributions, and other statutory deductions, depending on the specific breakdown of the CTC and the individual's tax saving investments.
Commonly searched salaries
Note: This is only for informational purposes
| Annual Salary (Lakh per annum) | Monthly Salary Range |
|---|---|
| 5 LPA in hand salary | 38,900 to 41,400 |
| 6 LPA in hand salary | 45,500 to 49,800 |
| 7 LPA in hand salary | 51,000 to 54,600 |
| 8 LPA in hand salary | 57,200 to 62,400 |
| 9 LPA in hand salary | 63,600 to 70,300 |
| 10 LPA in hand salary | 70,000 to 77,000 |
| 11 LPA in hand salary | 76,300 to 76,300 |
| 12 LPA in hand salary | 82,000 to 90,400 |
| 13 LPA in hand salary | 87,600 to 97,100 |
| 14 LPA in hand salary | 93,000 to 1,03,000 |
| 15 LPA in hand salary | 98,600 to 1,10,500 |
| 16 LPA in hand salary | 1,04,000 to 1,17,100 |
| 17 LPA in hand salary | 1,09,000 to 1,23,700 |
| 18 LPA in hand salary | 1,15,200 to 1,29,800 |
| 19 LPA in hand salary | 1,20,700 to 1,35,900 |
| 20 LPA in hand salary | 1,26,200 to 1,42,000 |
| 21 LPA in hand salary | 1,31,000 to 1,48,100 |
| 22 LPA in hand salary | 1,31,000 to 1,48,100 |
| 22.5 LPA in hand salary | 1,40,100 to 1,57,200 |
| 24 LPA in hand salary | 1,40,100 to 1,57,200 |
| 26 LPA in hand salary | 1,59,400 to 1,78,600 |
| 28 LPA in hand salary | 1,70,500 to 1,90,800 |
| 30 LPA in hand salary | 1,81,500 to 2,03,100 |
- HRA: Assumed to be 50% of Basic Pay for metro cities like Mumbai, Delhi, Kolkata, and Chennai.
- EPF: Calculated at 12% of Basic Pay.
- Age: Considered to be less than 60 years.
- Tax Regime: The old tax regime is applied.
- Section 80C: The full limit of ₹1.5 lakh is utilized.
- HRA Exemption: 50% of the HRA is fully claimed as tax-exempt.
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