Salary Calculator

Deductions under 80C (up to Rs 1.5 lakh) reduce your taxable income before tax is applied, which lowers your tax and raises take-home. On a Rs 6,00,000 income at 20% effective tax, a full Rs 1,50,000 deduction saves roughly Rs 30,000 in tax.

The new regime offers lower slab rates but removes most deductions and exemptions, while the old regime keeps deductions like 80C, HRA, and home loan interest. Choose based on which yields lower tax for your income and deductions; you can switch each financial year.

Professional tax is a small state-level deduction (usually Rs 200-2,500 a year), and EPF takes 12% of your basic salary plus a matching employer contribution. Both come out before you receive your salary, so in-hand pay is lower than the post-tax figure alone.

Your employer computes TDS on total annual earnings including the bonus and deducts the cumulative tax across installments, so the bonus is effectively taxed at your average rate. If the bonus pushes you into a higher slab, the tax deduction in that month will jump.

CTC is the total cost your employer incurs including salary, bonuses, provident fund, insurance, and other benefits. In-hand salary is what you actually receive after tax deductions, PF contributions, and other statutory deductions. The difference can be 20-40% depending on your tax bracket and benefits structure.

Your effective tax rate is the total tax you pay divided by your total taxable income. Under the new tax regime in India, calculate your tax liability using the applicable slabs, subtract any rebates, and divide by your total income. For most salaried employees, the effective rate is lower than the marginal rate.

This calculator focuses on tax deductions. PF contributions are typically 12% of basic salary and reduce your in-hand salary further. Consider this as an additional deduction when budgeting. The calculator provides a good estimate for tax-only scenarios.