Salary Calculator India FY 2025-26 — Custom Payslip, CTC to Take-Home & Tax Breakup

Take-home salary = Gross Salary − Employee PF − Professional Tax − Income Tax (TDS). Gross Salary = CTC minus Employer PF and Gratuity (since those are employer costs, not paid to you). For a ₹12 lakh CTC with 40% basic: Gross ≈ ₹10.2 lakh, Employee PF ≈ ₹21,600, PT ₹2,400, and TDS (new regime) ≈ ₹0 (under ₹12L threshold). Monthly take-home ≈ ₹81,000–83,000.

CTC (Cost to Company) is the total annual amount an employer spends on you — including Basic, HRA, Special Allowance, Employer PF contribution, and Gratuity provision. Gross Salary is what gets credited to your account before deductions — it equals CTC minus Employer PF and Gratuity (since those never reach your bank account). In-hand or take-home salary is what you actually receive: Gross minus Employee PF, Professional Tax, and TDS (income tax). For a ₹15 lakh CTC, the take-home could be anywhere from ₹80,000 to ₹1,00,000/month depending on your tax regime, deductions, and PF structure.

For most salaried employees in FY 2025-26, the new regime gives higher take-home because tax rates are lower and the ₹12 lakh taxable income threshold (post ₹75,000 standard deduction) is effectively tax-free via the 87A rebate. The old regime only wins when your total deductions are large: typically, HRA (for high-rent cities) + 80C (₹1.5L) + 80D + home loan interest combined exceed ₹4–5 lakh. Our calculator shows the exact take-home for both regimes side by side.

Employee PF = 12% of Basic Salary. However, the statutory cap for EPF is ₹15,000/month basic — so maximum Employee PF is ₹1,800/month (₹21,600/year). If your basic salary exceeds ₹15,000/month, your company may cap PF at ₹1,800/month or contribute on full basic (company policy varies). Employee PF does reduce your take-home cash, but it's forced savings — the money goes into your EPF account and earns ~8.25% interest tax-free, with the full corpus tax-free at withdrawal after 5+ years of service.

HRA (House Rent Allowance) exemption in the old regime is the minimum of: (1) actual HRA received, (2) actual rent paid minus 10% of basic salary, and (3) 50% of basic for metro cities (Delhi, Mumbai, Kolkata, Chennai) or 40% for non-metros. Example: Basic ₹40,000/month, HRA received ₹20,000, rent paid ₹18,000, metro city. Exemption = min(₹20,000, ₹14,000, ₹20,000) = ₹14,000/month. In the new regime, no HRA exemption is available — but the lower slab rates often compensate for this loss.

Professional Tax (PT) is a state-level tax on employment, capped at ₹2,500/year nationally. It is deducted by employers in states including Maharashtra (₹2,500), Karnataka (₹2,400), West Bengal (₹2,400–₹2,500), Telangana, Andhra Pradesh, Tamil Nadu, Assam, Gujarat, and Meghalaya. States that do NOT levy PT include Delhi, Uttar Pradesh, Rajasthan, Haryana, and most union territories. PT is deductible from gross salary for tax purposes under both regimes.

Most banks approve home loans where total EMIs (existing + new) don't exceed 40–50% of your net take-home salary. If your monthly take-home is ₹80,000, you can afford an EMI of roughly ₹32,000–₹40,000. At 8.75% for 20 years, that supports a loan of ₹38–₹47 lakh. Higher take-home (from choosing the better tax regime) directly increases your loan eligibility. Our calculator links to the Home Loan EMI calculator with your take-home pre-filled for affordability check.

Special Allowance is the balancing figure in your CTC structure — it is simply what is left of your CTC after all named components (Basic, HRA, LTA, Bonus, Employer PF, Gratuity) are accounted for. It has no fixed formula or government definition. Most companies arrive at it by setting Basic at 40–50% of CTC, capping PF at ₹1,800/month, and using standard HRA percentages. The remainder flows into Special Allowance. Unlike HRA or LTA, Special Allowance is fully taxable under both new and old tax regimes — there is no exemption available. A higher Special Allowance usually means higher take-home but lower PF accumulation and gratuity.

Gratuity is a lump-sum payment made by your employer on resignation, retirement, or death, after completing 5 years of continuous service. Formula: Last drawn basic salary × 15 × years of service ÷ 26. Example: Basic ₹50,000/month, 10 years service → Gratuity = ₹50,000 × 150 ÷ 26 = ₹2,88,462. Gratuity is tax-free up to ₹20 lakh. It forms part of CTC (at roughly 4.81% of annual basic) but is never deducted from your monthly payslip — it is an employer cost and provision. Employees who leave before 5 years generally forfeit gratuity (with narrow exceptions for death or disability).