2026 India Pay Calculator

CTC (Cost to Company) is the total amount a company spends on an employee annually, including salary, benefits, EPF, gratuity, and other perks. Take-home salary is the actual amount you receive in your bank account after all deductions like income tax, PF, professional tax, and other contributions. Typically, take-home is 60-70% of CTC.

If you have significant deductions under sections 80C, 80D, HRA, home loan interest, etc., the old regime might be beneficial. If you have minimal deductions and prefer simplicity, the new regime with lower tax rates could save more. Use the calculator above to compare both regimes based on your actual situation.

Income tax is calculated on your gross taxable income after deductions. The tax rates are progressive (slab-based). Your employer deducts TDS (Tax Deducted at Source) monthly based on your estimated annual income and investments. Final tax is reconciled when you file your ITR (Income Tax Return) before July 31st.

Yes, you can claim HRA exemption even if you live with your parents, provided you pay them rent and they declare it as rental income in their tax returns. You need a rent agreement and proof of payment (bank transfers recommended). However, if the rent exceeds ₹1 lakh annually, your parents must have a PAN card.

Standard Deduction is a flat ₹50,000 deduction available to all salaried individuals and pensioners. You do not need to submit any proof or make any investment. It is automatically considered while calculating taxable income. This deduction is available in both old and new tax regimes.

Section 80C allows a maximum deduction of ₹1.5 lakh per year. Investments in PPF, ELSS, NSC, life insurance premiums, EPF, principal repayment of home loan, and tuition fees qualify. Investing the full ₹1.5 lakh can save you ₹46,800 in taxes (at 30% tax rate plus cess) under the old regime.

You must provide Form 16 from your previous employer to your new employer. The new employer will calculate TDS considering your previous income. If you don not provide it, tax will be calculated only on new salary, potentially leading to under-deduction and tax liability during ITR filing. Always share previous employment details.

EPF (Employee Provident Fund) is mandatory for all establishments with 20 or more employees. Both employee and employer contribute 12% of basic salary. The employee contribution is tax-deductible under 80C. Interest earned (currently 8.15%) is tax-free. You can withdraw EPF after retirement or under specific conditions.