What is in-hand salary?
In-hand (net or take-home) salary is the amount credited to your bank account every month after all deductions. Starting from gross salary, the employer deducts your share of provident fund, ESI (if applicable), state professional tax and tax deducted at source (TDS). If you only know your annual CTC, the calculator first strips out employer PF, employer ESI and gratuity provision to arrive at gross, then applies the deductions.
Deductions applied
- Employee PF — 12% of basic, by default on wages capped at ₹15,000 (₹1,800/month).
- Employee ESI — 0.75% of gross, only when gross is ₹21,000 or less.
- Professional tax — per state slabs (nil in Rajasthan, Delhi, UP, Haryana; ₹200/month at the top slab in Maharashtra, Karnataka, WB, Gujarat and others).
- TDS — annual income tax spread over 12 months. New regime (default for FY 2025-26): nil up to ₹4 lakh, then 5/10/15/20/25% on each ₹4 lakh band and 30% above ₹24 lakh, standard deduction ₹75,000, full rebate up to ₹12 lakh taxable income. Old regime: 5/20/30% slabs with ₹50,000 standard deduction and your Chapter VI-A deductions.
Worked example
Gross ₹1,00,000 per month in Rajasthan, basic 50%, PF on capped wages, new regime. Annual gross ₹12,00,000 less standard deduction ₹75,000 = taxable ₹11,25,000, which is within the ₹12 lakh rebate limit, so tax is nil. Deductions are only PF ₹1,800, giving an in-hand of ₹98,200. At ₹2,00,000 gross, taxable income is ₹23,25,000, tax ₹2,81,250 plus 4% cess = ₹2,92,500 a year or ₹24,375 per month.
Tips
Compare both regimes before submitting your investment declaration — the old regime wins only when HRA, 80C, 80D and home-loan interest together exceed roughly ₹4–5 lakh. Enter other monthly deductions (loan EMIs recovered by the employer, LWF, canteen) for an exact net figure.
Checklist before you rely on the number
Confirm with HR whether PF is on capped or full basic, which state slab applies for professional tax, and whether any flexible benefits (meal cards, fuel reimbursement) are paid outside gross, since these change the net figure by a few hundred rupees.
Frequently Asked Questions
Which tax regime does the calculator use by default?
The new regime, which is the default under the Income-tax Act for FY 2025-26 unless you opt for the old regime with your employer. Switch to old regime and enter your deductions to compare.
Is salary up to ₹12 lakh really tax-free?
Taxable income up to ₹12 lakh attracts a full rebate under Section 87A in the new regime, so a salaried person with ₹12.75 lakh gross (after ₹75,000 standard deduction) pays no tax. Above that, marginal relief applies briefly, then normal slab tax.
Why is ESI not deducted in my result?
ESI applies only when monthly gross wages are ₹21,000 or below (₹25,000 for persons with disability). Above that the employee is outside ESI coverage.
Does the result match my payslip exactly?
It should be very close. Differences arise if your employer computes PF on full basic, applies different professional tax slabs, or adjusts TDS unevenly across months based on your declarations.
Disclaimer: This tool is for general information and estimation only. Tax rates and rules change — verify with official sources or a professional before acting. Read full disclaimer.