Standard deductions and exemptions do not apply under the New Tax Regime (Tax Act 2025).
Monthly Take-Home
₹90,587
Calculated under the New Tax Act 2025
Annual Total
₹12,37,039
Total Taxes
₹81,171
Employer EPF
₹74,720
Taxable Salary
₹13,20,330
Breakdown
Income Tax & Cess
₹81,171
EPF Contribution
₹74,720
Effective Tax Rate5.8%
Regime Comparison Overview
Component
New Regime (M)
New Regime (A)
Old Regime (M)
Old Regime (A)
Base Gross
₹1,03,778
₹12,45,330
₹1,03,778
₹12,45,330
Income Tax
-₹6,764
-₹81,171
-₹14,179
-₹1,70,143
Final Take-Home
₹90,587
₹83,172
Understanding Your Indian In-Hand Salary
Calculating your monthly take-home salary in India is more complex than just dividing your Annual CTC by 12. Most Indian employers follow a Cost-to-Company (CTC) structure that includes several components, some of which are paid out monthly, while others are deferred or contributed toward your retirement.
Core Components of an Indian Salary Slip
Basic Salary: This is the fixed part of your salary and usually forms 40-50% of the CTC. It is fully taxable and serves as the basis for PF calculations.
House Rent Allowance (HRA): Often 40-50% of the Basic, HRA can be partially or fully tax-exempt if you live in a rented house.
Employee Provident Fund (EPF): Both you and your employer contribute 12% of your Basic salary toward EPF. While the employer's share is part of your CTC, only your contribution is deducted from your gross pay.
Professional Tax: A state-level tax (usually ₹200-2,500 annually) deducted from your monthly pay.
Standard Deduction: A flat tax break of ₹75,000 (as per Tax Act 2025) available to all salaried employees in both New and Old regimes.
Pro-Tip for 2026-27:
Under the New Tax Regime (2025 Act), tax slabs have been further simplified. For most middle-income earners with limited investments, the New Regime often results in a higher monthly take-home compared to the Old Regime.
Frequently Asked Questions
CTC (Cost to Company) is the total amount an employer spends on an employee annually. It includes your gross salary, employer PF contributions, gratuity, and insurance. The Take-Home salary is what hits your bank account after deducting taxes (TDS), your share of PF, and other deductions.
The New Tax Regime is now the default and offers lower tax rates and a higher rebate limit (up to ₹7 Lakhs taxable income). However, if you have significant deductions like Home Loan interest, HRA, and 80C investments exceeding ₹2.5-3 Lakhs, the Old Regime might still be beneficial.
For the Financial Year 2026-27, a standard deduction of ₹75,000 is directly reduced from your gross salary before calculating taxable income. This applies to both the Old and New tax regimes.
Yes, salaried individuals can typically choose their preferred regime at the start of the financial year when declaring taxes to their employer. You can also switch while filing your ITR, provided you don't have business income.