Enter a CTC and see what reaches the bank each month under both the new and the old tax regime, with every deduction shown. Rules as at October 2026.
The new regime leaves you ₹1,18,092 more a year, ₹9,841 a month.
| Per year | New regime | Old regime |
|---|---|---|
| Cost to company | ₹12,00,000 | ₹12,00,000 |
| Employer PF, paid to your PF account | −₹72,000 | −₹72,000 |
| Gross salary | ₹11,28,000 | ₹11,28,000 |
| Employee PF | −₹72,000 | −₹72,000 |
| Professional tax | −₹2,500 | −₹2,500 |
| Income tax and cess | ₹0 | −₹1,18,092 |
| In-hand, per year | ₹10,53,500 | ₹9,35,408 |
Structure: basic ₹6,00,000, house rent allowance ₹3,00,000, special allowance ₹2,28,000. An estimate for a resident under 60, before variable pay and reimbursements.
The same steps a payroll team follows each month, simplified to a salary that does not change during the year.
CTC is everything your employer spends on you in a year, including its own PF contribution and sometimes gratuity. In-hand salary is what reaches your bank account each month, after your PF, professional tax, ESI if it applies, and income tax have been deducted.
No. When CTC includes employer PF, that amount goes to your PF account, not your bank account. It is still yours, but you only receive it on withdrawal or retirement.
The new regime is the default and leaves more in hand for most salaries. The old regime only wins when your deductions are large: a high rent with house rent allowance, full use of the ₹1.5 lakh investment limit, health insurance and home loan interest. The calculator shows both side by side.
Under the new regime, yes, for a resident individual: the ₹75,000 standard deduction brings taxable income to ₹12 lakh, and the rebate covers tax on income up to that figure. The ₹12.75 lakh refers to gross salary, not CTC, so employer PF and gratuity are left out first.
Payslips include things a calculator cannot see: variable pay and bonuses, loss of pay days, reimbursements, a higher professional tax deduction in February in some states, and your employer's own projection of tax across the year. The calculator assumes the same salary every month.
Tax year 2026-27, for a resident individual under 60. Budget 2026 left the slabs, standard deductions and rebates of 2025-26 unchanged, so the figures are the same for both years. HRA counts at 50% of basic in eight cities from 2026-27: Delhi, Mumbai, Kolkata, Chennai, Bengaluru, Hyderabad, Pune and Ahmedabad.
How the new and old tax regimes change monthly TDS on salary, when employees declare a choice, which proofs payroll needs, and why March goes wrong.
How the labour codes define wages, what the 50% rule does to PF, gratuity and take home pay, and how to restructure salaries without surprising anyone.
PF, ESI, professional tax, TDS and labour welfare fund: who each applies to, how it is calculated and when it is due, for employers paying staff in India.
PayLoom works out PF, ESI, professional tax and TDS for every employee from one record, state by state, and shows what changed before each run is approved.