India Salary & Take-Home Calculator
Exact monthly in-hand salary with New vs Old regime comparison ā fully updated for Income Tax Rules 2026, including enhanced allowances, 8-city HRA rule, Form 124, and 14% employer NPS exemption.
India Income Tax Rules 2026 ā Salary Calculator Guide
What changed from April 1, 2026?
The Income Tax Rules 2026 replace the Income Tax Rules 1962 and align with the new Income Tax Act 2025. For salaried employees, the biggest changes are dramatically higher allowance limits, expansion of the 50% HRA city list to 8 metros, and increased employer NPS exemption to 14% under the new regime.
New Tax Regime ā Default for 2026-27
The new regime is the default. Income up to ā¹12 lakh attracts zero tax after Section 87A rebate, and with the ā¹75,000 standard deduction, effective zero-tax income is ā¹12.75 lakh. Employer NPS contributions up to 14% of salary are exempt. No deductions for HRA, 80C investments, home loan interest, or other allowances. No Form 124 submission required ā simpler tax filing.
Old Regime ā Now More Attractive in 2026
The old regime has become more attractive for employees with children (education + hostel allowance jumped 30x), those in the 8 expanded HRA cities, and those with home loans. However, all exemptions now require documentary proof submitted via Form 124 (which replaces Form 12BB). Without proof, TDS is deducted on the full salary ā no automatic exemptions.
How Employee PF is Calculated
Employee PF is 12% of Basic Salary. For most salaried employees under EPFO, this is capped at ā¹1,800/month (12% of ā¹15,000 wage ceiling). Employees earning above this threshold can voluntarily contribute 12% of their actual Basic ā called VPF (Voluntary Provident Fund). Some organisations ā particularly startups, contractual roles, and international companies ā may not be covered under EPFO, in which case PF does not apply. Selecting the correct PF option ensures your take-home calculation is accurate.
How CTC differs from In-Hand Salary
Your CTC includes Employer PF (12% of Basic, capped at ā¹1,800/month), Gratuity (4.81% of Basic), and Employer NPS if applicable. These are employer costs that never reach your bank account. Your in-hand salary = Gross Salary ā Employee PF ā Professional Tax ā TDS. This calculator shows all these deductions transparently.