Frequently Asked Questions
Complete guide to salary calculation in India for FY 2025-26
Calculator Basics
How accurate is this salary calculator?
Our calculator uses the latest FY 2025-26 Indian tax slabs and follows official Income Tax Act formulas. It includes:
- Current EPF rates (12% of basic salary)
- Professional tax (₹200/month for most states)
- Both new and old tax regime support
- HRA exemption calculations for metro/non-metro cities
- All major tax deductions under sections 80C, 80D, etc.
The results are accurate for standard Indian salary structures. Complex cases like foreign income or multiple employers may require professional consultation.
What is the difference between CTC and in-hand salary?
CTC (Cost to Company) is the total cost your employer spends on you, including:
- Basic salary
- House Rent Allowance (HRA)
- Other allowances (travel, food, etc.)
- Employer's PF contribution
- Medical insurance premiums
In-hand salary is your actual take-home pay after deductions:
- Income tax
- Employee PF contribution (12% of basic)
- Professional tax (₹200/month)
- Other deductions (if any)
Can I trust this calculator with my financial information?
Yes! We follow a privacy-first approach:
- All calculations happen in your browser
- We use daily-salted visitor tracking (not persistent cookies)
- No personal information is required
- Analytics data is anonymized and aggregated
- DPDP Act 2023 compliant
- 100% ad-free experience
Read our complete Privacy Policy for full details.
Income Tax Slabs FY 2025-26
What are the income tax slabs for FY 2025-26?
New Tax Regime (FY 2025-26)
| Income Range | Tax Rate | Tax Amount |
|---|---|---|
| Up to ₹3,00,000 | 0% | ₹0 |
| ₹3,00,001 - ₹6,00,000 | 5% | ₹15,000 |
| ₹6,00,001 - ₹9,00,000 | 10% | ₹30,000 |
| ₹9,00,001 - ₹12,00,000 | 15% | ₹45,000 |
| ₹12,00,001 - ₹15,00,000 | 20% | ₹60,000 |
| Above ₹15,00,000 | 30% | Variable |
Standard Deduction: ₹50,000 available
Old Tax Regime (FY 2025-26)
| Income Range | Tax Rate | Tax Amount |
|---|---|---|
| Up to ₹2,50,000 | 0% | ₹0 |
| ₹2,50,001 - ₹5,00,000 | 5% | ₹12,500 |
| ₹5,00,001 - ₹10,00,000 | 20% | ₹1,00,000 |
| Above ₹10,00,000 | 30% | Variable |
Standard Deduction: ₹50,000 + Multiple other deductions available
Is there any surcharge or cess on income tax?
Yes, additional charges apply on higher incomes:
Surcharge Structure (FY 2025-26)
| Income Range | Surcharge Rate |
|---|---|
| Up to ₹50,00,000 | 0% |
| ₹50,00,001 - ₹1,00,00,000 | 10% |
| ₹1,00,00,001 - ₹2,00,00,000 | 15% |
| ₹2,00,00,001 - ₹5,00,00,000 | 25% |
| Above ₹5,00,00,000 | 37% |
Health and Education Cess: 4% of (Income Tax + Surcharge) applies to all taxpayers.
Our calculator automatically includes surcharge and cess in the final tax calculation.
New vs Old Tax Regime
New vs Old tax regime - which saves more money?
The answer depends on your total deductions and investments:
New Tax Regime
Choose if you have:
- Low investments (under ₹1.5 lakhs annually)
- No home loan
- Minimal medical expenses
- No life insurance premiums
- Want simplicity without tax planning
Key Features:
- Lower tax rates
- Higher exemption limit (₹3 lakhs)
- Only ₹50,000 standard deduction
- No other deductions allowed
Old Tax Regime
Choose if you have:
- High investments (over ₹2 lakhs annually)
- Home loan EMIs
- High medical expenses
- Life insurance premiums
- HRA component in salary
Key Features:
- Higher tax rates
- Lower exemption limit (₹2.5 lakhs)
- Multiple deductions available
- HRA exemption allowed
Tax Regime Decision Flowchart
(80C + HRA + Home Loan + 80D)
Higher deductions offset higher tax rates
Lower tax rates with minimal deductions
Break-even Analysis
Generally, old regime becomes better when your total deductions exceed:
- ₹10-15 LPA income: ₹2-3 lakhs in deductions
- ₹15-25 LPA income: ₹3-4 lakhs in deductions
- Above ₹25 LPA: ₹4-5 lakhs in deductions
Confused About Which Regime to Choose?
Stop guessing! Our calculator compares both regimes with your exact salary numbers and shows you the precise tax savings.
Calculate Your Tax Savings Now →Can I switch between tax regimes every year?
Yes, you can switch every financial year, but with conditions:
Salaried Employees
- Can switch every year without restrictions
- Inform your employer before salary processing
- Update Form 12BB for deductions (old regime)
- Can change during the year with employer consent
Business/Professional Income
- Once you choose new regime, cannot switch back to old regime
- This restriction applies only to business income
- Choose carefully if you have business income
Best Practice: Calculate tax under both regimes annually and choose the beneficial one. Our calculator makes this comparison easy.
HRA Calculation Guide
How is HRA exemption calculated in India?
HRA exemption is calculated as the minimum of three values as per the IT Act Section 10(13A):
HRA Exemption Formula
Metro Cities (50% of basic salary)
- Mumbai (including Navi Mumbai, Thane)
- Delhi (including NCR - Gurgaon, Noida, Faridabad)
- Kolkata
- Chennai
- Pune
- Bangalore
- Ahmedabad
- Hyderabad
Calculate Your Exact HRA Savings
Our calculator automatically determines your city type and calculates the maximum HRA exemption you can claim. See your real tax savings!
Calculate HRA Benefits Now →HRA calculation example with real numbers
Example: Software Engineer in Bangalore
Salary Details:
- Annual CTC: ₹12,00,000
- Basic Salary: ₹6,00,000 (50% of CTC)
- HRA Received: ₹2,40,000 annually
- Monthly Rent Paid: ₹25,000 (₹3,00,000 annually)
- City: Bangalore (Metro)
HRA Exemption Calculation:
Tax Impact:
Full HRA of ₹2,40,000 is exempt from tax, reducing taxable income by ₹2,40,000 annually.
Tax Deductions Guide
Complete list of tax deductions for FY 2025-26
Available only in Old Tax Regime:
| Section | Deduction | Limit FY 2025-26 | Description |
|---|---|---|---|
| 80C | Investment & Insurance | ₹1,50,000 | EPF, ELSS, Insurance premiums, PPF |
| 80D | Medical Insurance | ₹75,000 | ₹25K (self), ₹25K (parents), ₹25K (senior parents) |
| 80E | Education Loan Interest | No limit | Interest on education loan |
| 80G | Charitable Donations | 10% of income | Donations to approved institutions |
| 24(b) | Home Loan Interest | ₹2,00,000 | Interest on home loan |
| 80EEA | Additional Home Loan | ₹1,50,000 | First time buyer, loan up to ₹45L |
| 80TTA | Savings Interest | ₹10,000 | Interest on savings account |
| 80CCD(1B) | NPS Additional | ₹50,000 | Additional NPS contribution |
What is Section 80C and what investments qualify?
Section 80C allows deduction up to ₹1,50,000 for various investments and expenses:
Popular 80C Investments
Employee Provident Fund (EPF)
Automatic deduction from salary (12% of basic)
Tax benefit: Triple exemption (EEE)
ELSS Mutual Funds
Equity Linked Savings Scheme
Lock-in: 3 years, Returns: Market-linked
Public Provident Fund (PPF)
15-year government scheme
Returns: ~7-8% annually, tax-free
Life Insurance Premiums
Term/endowment insurance premiums
Limit: 10% of sum assured or ₹1.5L
Home Loan Principal
Principal repayment of home loan
Benefit: Reduces EMI tax burden
Children's Tuition Fees
Tuition fees for 2 children
Note: Only tuition, not development fees
Tax Planning Strategy
Most salaried employees automatically get ₹50,000-80,000 from EPF. Plan additional investments to maximize the ₹1,50,000 limit for optimal tax savings.
EPF & Provident Fund
How is EPF calculated and what are the contribution limits?
EPF Contribution Structure
Employee Contribution
- Rate: 12% of basic salary
- Cap: ₹1,800/month (if basic > ₹15,000)
- Deduction: From your salary
- Tax Benefit: 80C deduction
Employer Contribution
- Total: 12% of basic salary
- PF: 3.67% → Your PF account
- EPS: 8.33% → Pension scheme
- Note: Not deducted from salary
EPF Calculation Examples
Scenario 1: Basic Salary ₹30,000/month
- Employee EPF: 12% × ₹30,000 = ₹3,600/month
- Employer EPF: 3.67% × ₹30,000 = ₹1,101/month
- Total PF credit: ₹3,600 + ₹1,101 = ₹4,701/month
- Annual PF contribution: ₹56,412
Scenario 2: Basic Salary ₹50,000/month (Above ₹15K)
- Employee EPF: Capped at ₹1,800/month
- Employer EPF: 3.67% × ₹15,000 = ₹551/month
- Total PF credit: ₹1,800 + ₹551 = ₹2,351/month
- Annual PF contribution: ₹28,212
What is UAN, PF balance check, and withdrawal process?
Universal Account Number (UAN)
UAN is a 12-digit number that remains same throughout your career, linking all your PF accounts across different employers.
Online PF Services
- Balance Check: SMS "EPFOHO UAN ENG" to 7738299899
- Passbook: Download from EPFO portal
- Claim Status: Track withdrawal online
- Transfer: Move PF between employers
PF Withdrawal Rules
Full Withdrawal
- After 2 months of unemployment
- Retirement at 58 years
- Migration abroad permanently
Partial Withdrawal
- Marriage (50% after 7 years)
- Home construction/purchase
- Medical emergency
- Education expenses
Understanding Salary Structure
How is CTC broken down into different components?
Typical CTC Structure in India
Fixed Components (70-80% of CTC)
Foundation for EPF, gratuity calculations
Tax exempt with rent receipts (old regime)
Transport/fuel expenses
Tax exempt up to ₹15,000 annually
Balancing component, fully taxable
Variable Components (10-20% of CTC)
Based on individual/company performance
Usually 8.33% of basic salary
Long-term retention incentive
Benefits (5-15% of CTC)
Retirement savings contribution
Health insurance premium
4.81% of basic salary provision
Tax-free up to ₹2,200/month
Visual CTC Breakdown: ₹12 LPA Example
Detailed Breakdown Table
| Component | Monthly | Annual | % of CTC |
|---|---|---|---|
| Basic Salary | ₹50,000 | ₹6,00,000 | 50% |
| HRA | ₹20,000 | ₹2,40,000 | 20% |
| Special Allowance | ₹15,000 | ₹1,80,000 | 15% |
| Conveyance | ₹1,600 | ₹19,200 | 1.6% |
| Medical | ₹1,250 | ₹15,000 | 1.25% |
| Employer EPF | ₹1,800 | ₹21,600 | 1.8% |
| Medical Insurance | ₹2,000 | ₹24,000 | 2% |
| Total CTC | ₹1,00,000 | ₹12,00,000 | 100% |
Want to See Your Exact CTC Breakdown?
Enter your CTC in our calculator to see the precise breakdown of take-home salary, taxes, and deductions for your specific situation.
Calculate Your Take-Home Salary →Privacy & Security
How do you protect my salary information?
Privacy-First Approach
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Is this calculator secure for sensitive financial data?
Security Implementation
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