India Salary & Take-Home Calculator
Estimate your monthly in-hand salary with New vs Old regime comparison — fully updated for Income Tax Rules 2026, including enhanced allowances, the 8-city HRA rule, and 14% employer NPS exemption.
India Income Tax Rules 2026 — 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 — Default for 2026-27
The new regime is the default. Income up to ₹12 lakh attracts zero tax after Section 87A rebate, and with the ₹75,000 standard deduction, effective zero-tax income is ₹12.75 lakh. Employer NPS contributions up to 14% of salary are exempt. No deductions for HRA, 80C investments, home loan interest, or other allowances. No investment-proof declaration required — simpler tax filing.
Old Regime — 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 declared to your employer (the Form 12BB declaration is being renumbered under the Rules 2026). Without proof, TDS is deducted on the full salary — no automatic exemptions.
Why does Monthly Basic Salary matter?
Your Basic Salary is the single most important input for PF and HRA calculations. Employee PF = 12% of Basic (capped at ₹1,800/month for standard EPFO employees). HRA exemption also uses Basic as one of its three comparison values. If you leave the Basic field blank, this calculator estimates it as 50% of your annual CTC — a common industry structure. However, your actual Basic may be different. Check your offer letter, pay slip, or Form 16 for the exact figure.
How Employee PF is Calculated
Both you and your employer contribute 12% of Basic Salary to EPF. Many cost-optimised employers restrict this to the ₹15,000 wage ceiling — ₹1,800/month each side. But a large number of employers, especially where Basic exceeds ₹15,000, contribute 12% of your actual Basic on both sides. That is entirely legal and makes your total PF much larger, widening the gap between CTC and take-home. Use the PF Contribution Base selector to match your offer letter. Some organisations — startups, contractual or international roles — are outside EPFO, in which case PF does not apply.
How CTC differs from In-Hand Salary
Your CTC bundles both PF contributions. The employer PF (12% of Basic), Gratuity (4.81% of Basic) and Employer NPS are employer costs sitting on top of your Gross Salary — they never reach your bank. Gross Salary = CTC − employer PF − gratuity − employer NPS. Your own PF (another 12% of Basic) is then deducted from Gross along with Professional Tax and TDS to give your in-hand: Take-Home = Gross − Employee PF − Professional Tax − TDS. So both PF contributions are part of CTC — one removed to reach Gross, the other deducted from Gross.