CTC (Cost to Company) is the total yearly expenditure a company makes on an employee, including employer PF, gratuity, and insurance. Take-home (net salary) is what actually reaches your bank account after deducting employee PF, income tax, professional tax, and other deductions.
HRA exemption is the minimum of: (1) Actual HRA received, (2) 50% of Basic salary if metro city / 40% if non-metro, (3) Actual rent paid minus 10% of Basic. The exemption is only available under the Old Tax Regime.
The new tax regime (FY 2025-26) offers lower slab rates but no deductions. Old regime allows 80C, 80D, HRA, LTA, home loan interest, and more. If your total claimed deductions exceed ~₹3.75 lakh, the old regime usually saves more tax. Use the side-by-side comparison above to decide.
Professional tax is a state-level tax on salaried employees. Most states cap it at ₹2,400–2,500 per year. Maharashtra charges ₹2,500/yr for salaries above ₹10,000/month. It is deductible from income under the Income Tax Act.
For FY 2025-26, the standard deduction is ₹75,000 under the New Tax Regime and ₹50,000 under the Old Tax Regime. This is automatically applied in this calculator.
Yes, many companies include employer gratuity provision in CTC (4.81% of basic). However, gratuity is payable only after completing 5 years of service and should not be counted as monthly take-home income.