Salary Calculator: Net Pay Breakdown
Calculate net take-home salary after tax deductions, provident fund, and other contributions.
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Salary Calculator: Net Pay Breakdown Your CTC is not your salary. A ₹12 LPA (₹1,00,000/month CTC) typically translates to ₹72,000–₹80,000 in hand after PF, income tax, professional tax, and other deductions. A salary calculator shows you the exact number — and why the gap exists. --- See our Complete Guide to Financial Calculators What is the difference between CTC, gross salary, and net salary? — The Three Numbers Every offer letter involves three salary concepts: CTC (Cost to Company): Everything the employer pays on your behalf — basic salary, HRA, all allowances, employer PF, gratuity provision, health insurance, office perks. This is the headline number in job offers. Gross Salary: The monthly cash-equivalent salary before any deductions. Typically 80–90% of annual CTC. Excludes…
Frequently Asked Questions
How do I calculate net salary?
Net salary = Gross salary - Income tax - Employee PF (12% of basic) - Professional tax - Other deductions. For a ₹12 LPA CTC employee, gross monthly might be ₹85,000, from which PF (₹1,800), professional tax (₹200), and income tax (₹5,000–₹8,000) are deducted, yielding approximately ₹75,000–₹78,000 in hand.
What deductions are made from gross salary?
Standard deductions from gross salary include: Employee Provident Fund (12% of basic salary, up to ₹1,800/month), Professional Tax (state-dependent, typically ₹200/month), income tax as per applicable slab, and any voluntary contributions like NPS or VPF.
How is income tax calculated on salary?
For FY 2025-26, under the new tax regime: income up to ₹3 lakh is nil; ₹3–7 lakh taxed at 5%; ₹7–10 lakh at 10%; ₹10–12 lakh at 15%; ₹12–15 lakh at 20%; above ₹15 lakh at 30%. Rebate under Section 87A makes income up to ₹7 lakh effectively zero-tax under the new regime.
What is CTC vs gross salary vs net salary?
CTC (Cost to Company) is the total employer expense including all benefits — salary, PF, gratuity, insurance. Gross salary is the cash component before deductions, typically 80–90% of CTC. Net salary (take-home) is gross minus all deductions — tax, PF, professional tax. Net is usually 70–85% of gross.
How do I calculate HRA exemption?
HRA exemption is the minimum of: (a) actual HRA received, (b) 50% of basic salary for metro / 40% for non-metro, (c) rent paid minus 10% of basic salary. If basic is ₹30,000, HRA received is ₹15,000, and rent paid is ₹18,000 in Mumbai: exemption = min(₹15,000, ₹15,000, ₹15,000) = ₹15,000.
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