What this calculator does
Computes net in-hand salary by taking annual CTC, deducting employer benefits (EPF, gratuity, insurance), deducting employee statutory contributions (EPF, PT), and applying Indian income tax slabs.
Formula & Mathematical Logic
Monthly Take-Home = (Annual Gross − Employee PF − PT − Net Tax − Cess) ÷ 12
CTC is Cost to Company, Gross is cash pay before employee deductions, Taxable Income is Gross minus eligible exemptions and deductions.
How WealthAura calculates this
We deduct employer costs to determine gross salary, deduct employee PF and professional tax, apply the standard deduction (₹75,000 for New Regime, ₹50,000 for Old Regime), compute slab tax, apply Section 87A rebate, add 4% health & education cess, and divide net cash pay by 12.
Worked example
A ₹12,00,000 CTC under the AY 2026-27 New Tax Regime with ₹1,800/mo PF has zero net income tax due to the revised ₹12 Lakh rebate threshold, yielding approximately ₹97,000 monthly take-home.
Input sensitivity & what changes
For a ₹15,00,000 CTC, an employee claiming zero deductions pays far less tax under the New Regime than under the Old Regime, whereas someone with high Chapter VI-A deductions (₹4.25 Lakh+) may still benefit from the Old Regime.
How to interpret the result
Reveals the exact variance between headline CTC figures in an offer letter and the net bank deposit.
Key factors that influence the outcome
Employer PF matching, gratuity reserves, group medical insurance, performance bonuses, state-specific Professional Tax slabs, and regime selection.
Common calculation mistakes to avoid
Assuming CTC equals monthly salary multiplied by 12, or forgetting that standard deduction does not credit cash to your bank account.
Underlying assumptions & legal caveats
Resident individual under 60. Surcharge and marginal relief are not modelled in this baseline planner.
Read the related guide →