How is in-hand salary calculated from CTC?
Your CTC (Cost to Company) isn't what lands in your bank account. Your employer first deducts its own contributions — Provident Fund and a gratuity provision — to arrive at your gross salary. From gross salary, your own PF contribution, professional tax, and income tax (deducted as TDS) are subtracted to get your final take-home pay.
Why does this use the new tax regime?
The new tax regime has been the default since FY 2023-24, and most salaried employees are on it unless they've actively opted for the old regime. It has lower rates but disallows most exemptions and deductions (like 80C or HRA), so this calculator uses just the ₹75,000 standard deduction available to salaried employees. If you're on the old regime with significant deductions, your actual take-home will likely be higher.
What isn't included in this estimate?
This is a simplified estimate. It doesn't account for a PF wage-ceiling cap some employers apply, variable pay or bonuses paid separately from CTC, employer NPS contributions, or state-specific professional tax slabs beyond the flat monthly amount you enter. Treat it as a close estimate, not your exact payslip figure.