What will you actually take home?

CTC (cost to company) is everything your employer spends on you: gross salary plus employer PF, gratuity provision and benefits. In hand salary is what lands in your bank account each month after employer contributions are removed and income tax, your own EPF contribution and professional tax are deducted. A 12 LPA CTC is roughly ₹90,000 per month in hand under the new regime, not ₹1,00,000.

Start with CTC, subtract employer EPF (12% of basic) and any gratuity provision to get gross salary. From gross, subtract the ₹75,000 standard deduction to get taxable income, compute income tax under the FY 2025-26 new regime slabs, then subtract that tax, your own 12% EPF contribution and professional tax from gross. Divide by 12 for the monthly figure.

Yes, under the new regime. The section 87A rebate wipes out tax on taxable income up to ₹12,00,000, and with the ₹75,000 standard deduction a salary of ₹12.75 lakh pays zero income tax. Above that, marginal relief phases the tax in gradually. You still pay EPF and professional tax, so in hand is below gross even when income tax is zero.

For most salaried people in FY 2025-26 the new regime wins: its slabs are lower and the 87A rebate covers taxable income to ₹12 lakh. The old regime only wins if you claim large deductions — typically above roughly ₹4-4.5 lakh combined from 80C, HRA exemption, home loan interest and 80D. This calculator compares both on your exact numbers.

Company salary structures differ: basic may be 40% or 50% of CTC, employer PF may be capped at ₹1,800 per month on the ₹15,000 statutory wage ceiling, gratuity may or may not sit inside CTC, and variable pay is usually paid quarterly or annually, not monthly. Adjust the assumptions in the calculator to match your offer letter.

No. Professional tax is a state levy, at most ₹2,500 per year. Karnataka and Maharashtra charge about ₹200 per month, while Delhi and Haryana charge none. The calculator defaults to ₹2,400 per year and lets you change it.