India In-Hand Salary — Old vs New Regime, 2026 Edition
If you've ever opened your salary slip and wondered why ₹15 LPA shows up as ₹93,000/month in your bank account, this calculator walks the math. India runs two parallel tax regimes for salaried employees in FY 2026-27: the new regime (default since 2024) with simpler slabs and a ₹75,000 standard deduction, and the old regime with higher slabs but extensive deductions (80C, HRA, home loan interest, 80D, etc.). For most modern white-collar salaries above ₹12 lakh, the new regime wins; below that, it depends on your deductions.
FY 2026-27 New Regime Slabs (default)
| Income slab | Tax rate |
|---|---|
| Up to ₹4 lakh | Nil |
| ₹4 to ₹8 lakh | 5% |
| ₹8 to ₹12 lakh | 10% |
| ₹12 to ₹16 lakh | 15% |
| ₹16 to ₹20 lakh | 20% |
| ₹20 to ₹24 lakh | 25% |
| Above ₹24 lakh | 30% |
Standard deduction: ₹75,000 automatic for salaried (no documentation needed). Health and Education Cess: 4% on tax. Surcharge above ₹50 lakh income (10% / 15% / 25% depending on band).
FY 2026-27 Old Regime Slabs (now uncompetitive for most)
| Income slab | Tax rate |
|---|---|
| Up to ₹2.5 lakh | Nil |
| ₹2.5 to ₹5 lakh | 5% |
| ₹5 to ₹10 lakh | 20% |
| Above ₹10 lakh | 30% |
Standard deduction: ₹50,000. Deductions allowed: 80C (₹1.5L), 80D (₹25-75K), HRA exemption, home loan interest u/s 24b (₹2L self-occupied), 80E, NPS u/s 80CCD(1B) (₹50K extra), and many more.
The Components of Your CTC
Most Indian salary structures break CTC into:
- Basic salary (35-50% of CTC) — used for PF and gratuity calc
- HRA (40% basic non-metro, 50% basic metro) — partially exempt under old regime
- Special allowance — fully taxable, balance of CTC
- Employer PF contribution (12% of basic) — counted in CTC but not in your hand
- Employee PF (12% of basic) — deducted from your pay, goes to your EPF account
- Gratuity — 4.81% of basic (counted in CTC but you don't see it unless you stay 5+ years)
- Variable bonus — usually 10-20% of CTC, paid annually if targets met
HRA Exemption — Old Regime Only
HRA exemption (under section 10(13A)) is the minimum of:
- Actual HRA received from employer
- Rent paid minus 10% of basic salary
- 50% of basic if metro (Mumbai/Delhi/Kolkata/Chennai), 40% if non-metro
For someone earning ₹15 LPA with 40% basic (₹6L), paying ₹25k/month rent in Bangalore:
- Actual HRA: 40% of ₹6L = ₹2,40,000
- Rent − 10% basic: ₹3,00,000 − ₹60,000 = ₹2,40,000
- 40% basic (non-metro): ₹2,40,000
HRA exemption = minimum = ₹2,40,000. New regime: HRA exemption isn't allowed (you trade it for the higher standard deduction + lower slabs).
Professional Tax by State
| State | Annual professional tax |
|---|---|
| Maharashtra | ₹2,500 (₹200/month for ₹10K+ salary) |
| Karnataka | ₹2,400 (₹200/month above ₹15K) |
| Tamil Nadu | ₹2,500 (slab-based) |
| West Bengal | ₹2,496 (₹208/month) |
| Telangana / AP | ₹2,500 (₹200/month above ₹20K) |
| Gujarat | ₹2,400 (₹200/month above ₹12K) |
| Kerala | ₹2,500 |
| Delhi / Haryana / UP / Rajasthan | None |
Professional tax is deducted at source by the employer and remitted to the state. It's allowed as a deduction under old regime; not relevant under new regime (since new regime doesn't allow most deductions anyway, but PT is auto-deducted from gross before tax calc).
EPF Math
Both you and your employer contribute 12% of basic salary to EPF. The employer's share is part of your CTC but not visible in your monthly slip. Your share is deducted from your salary.
For basic of ₹6 lakh/year:
- Your EPF: 12% × ₹6L = ₹72,000/year (₹6,000/month deducted)
- Employer EPF: 12% × ₹6L = ₹72,000/year (counted in CTC)
- Total EPF balance growth/year: ₹1,44,000
EPF interest is currently 8.25% tax-free (FY 2024-25). Your contribution is also eligible for 80C deduction (under old regime).
Which Regime Should You Pick?
Default: New regime. It's automatic if you don't declare otherwise. Lower slabs, ₹75,000 standard deduction, simpler.
Switch to Old regime if your combined deductions exceed ~₹4-5 lakh:
- HRA exemption (varies by city + rent): ₹1-3 lakh
- 80C investments: ₹1.5 lakh
- 80D health insurance: ₹25-75K
- Home loan interest: ₹2L max
- NPS 80CCD(1B): ₹50K extra
If you stack HRA + 80C + home loan + 80D, you can easily clear ₹5-6 lakh in deductions — old regime starts winning at incomes above ₹12-15 lakh in that case.
Use the calculator above to see your exact numbers — it computes both regimes and tells you which wins.
Frequently Asked Questions
How is in-hand salary calculated in India?
In-hand = CTC − Employer PF − Income tax − Employee PF − Professional tax. The result is monthly take-home pay after all statutory deductions and tax.
Old vs new tax regime — which is better in 2026?
New regime usually wins for salaries above ₹12 lakh due to lower slabs and ₹75,000 standard deduction. Old regime wins only if your combined deductions (HRA + 80C + 80D + home loan interest + NPS) exceed ~₹4-5 lakh.
What is the standard deduction in FY 2026-27?
₹75,000 in the new regime (raised from ₹50,000 in Budget 2024). Old regime is still ₹50,000.
Is EPF mandatory?
Yes for organizations with 20+ employees, if basic salary is up to ₹15,000/month. Above that it's optional but commonly applied. Both employee and employer contribute 12% of basic.
How much professional tax is deducted from salary?
Varies by state. Maharashtra: ₹2,500/year. Karnataka: ₹2,400. Tamil Nadu: ₹2,500. Delhi/Haryana/UP/Rajasthan: none.