Salary Calculator - Calculate Take Home Salary from CTC

CTC (Cost to Company) is the total expense incurred by an employer for hiring an employee, including all benefits, allowances, and employer contributions. Take home salary is the net amount you receive in your bank account after deducting income tax, PF contribution, professional tax, and other statutory deductions from your gross salary.

Typically, take home salary ranges from 70-80% of CTC for most salary brackets in India. The exact percentage depends on your salary structure, tax slab, city type (metro/non-metro), PF contribution, and professional tax. Higher salaries may have lower percentages due to higher tax brackets and increased deductions.

HRA exemption is calculated as the minimum of three amounts: actual HRA received, 50% of basic salary for metro cities (40% for non-metro), and actual rent paid minus 10% of basic salary. If you don't live in a rented house, the entire HRA becomes taxable as part of your income.

Professional tax varies by state in India. Most states charge around ₹200 per month (₹2,400 annually), while some states like Delhi, Punjab, and Chandigarh don't levy professional tax. This tax is deductible from your taxable income under Section 16 of the Income Tax Act and is considered a business expense.

Yes, you can reduce tax liability by maximizing Section 80C investments (₹1.5 lakh limit), claiming HRA exemption if you pay rent, optimizing your salary structure with tax-exempt allowances, choosing between old and new tax regimes based on your deductions, and utilizing other sections like 80D for health insurance premiums.

Employee PF contribution is 12% of basic salary, capped at ₹1,800 per month (if basic salary exceeds ₹15,000 per month). This translates to a maximum annual contribution of ₹21,600. The employer also contributes an equal amount, with 8.33% going to Employee Pension Scheme and 3.67% to EPF account.

The choice depends on your deductions and investments. Old regime allows deductions under 80C, 80D, HRA exemption etc., but has higher tax rates. New regime offers lower tax rates but no deductions except standard deduction. Generally, if your annual deductions exceed ₹2-3 lakhs, old regime might be beneficial.

Our salary calculator provides highly accurate estimates based on standard salary structures and current tax laws. However, actual take-home may vary based on company-specific policies, variable allowances, reimbursements, and your specific tax planning strategies. For precise calculations, consult your HR department or tax advisor.