Build Your India Tax & Take-Home Estimate

Calculate income tax under both regimes and choose the better one

India's dual-regime tax system means every salaried individual must compare the Old Regime (with deductions like 80C, 80D, HRA, and Section 24 home loan interest) against the New Regime (lower slab rates, no deductions except NPS employer contribution and standard deduction of ₹75,000 from FY 2024-25). The Income Tax Calculator India lets you enter your gross salary, HRA, investments, and loan interest to compute tax liability under both regimes side by side. For most individuals earning under ₹12–15 lakh with significant 80C investments and home loan interest, the Old Regime saves more. For higher earners with fewer deductions (no home loan, minimal 80C), the New Regime is typically better. Don't guess — calculate both and compare.

Tip: The New Regime is now the default from FY 2023-24. To opt for the Old Regime, you must file Form 10-IEA before your return deadline. Missing this makes the switch irrevocable for that year.

Verify your monthly TDS deduction matches your actual liability

TDS (Tax Deducted at Source) is deducted monthly by your employer based on a projected annual tax calculation. Many employees discover only during filing that their TDS was significantly under or over-deducted — resulting in an unexpected tax demand or an unnecessarily reduced take-home salary all year. Use the TDS Calculator India to verify whether your employer's monthly deduction aligns with your actual tax liability (as calculated in Step 1). If TDS is over-deducted (common when joining mid-year or after a salary hike), you'll get a refund but had less cash through the year. If under-deducted, you'll owe tax at filing — possibly with interest under Section 234B and 234C. Inform your employer's payroll team early if there's a significant mismatch.

Tip: Submit a revised investment declaration to your employer by December–January to adjust TDS for the second half of the financial year — most companies allow one revision per year.

Calculate your actual in-hand (net) salary from your CTC

CTC (Cost to Company) and your actual bank credit are substantially different numbers. The gap includes: employer's PF contribution (12% of Basic, which is CTC but not your take-home), employee's PF contribution (also 12% of Basic — this reduces your monthly credit but goes into your EPF account), professional tax (₹200/month in most states), income tax TDS (as calculated above), and any group health insurance premium. The Salary Calculator India converts your CTC to in-hand salary by modelling all these deductions. A ₹15 lakh CTC typically translates to ₹1.05–1.15 lakh per month in-hand for a salaried employee in the 30% tax bracket under the Old Regime. At ₹20 lakh CTC, expect roughly ₹1.35–1.45 lakh in-hand.

Tip: Ask HR for the exact CTC breakup (Basic, HRA, Special Allowance, LTA, Medical, Bonus, Employer PF) before using the Salary Calculator — different breakup structures give very different in-hand amounts at the same CTC.

Plan your monthly budget around your verified in-hand salary

With your accurate in-hand salary from Step 3, use the Budget Planner to allocate monthly income across: fixed obligations (EMI, SIPs, insurance premiums, rent), variable necessities (groceries, utilities, fuel, household), discretionary spending (dining, subscriptions, travel, personal), and savings buffer (emergency fund top-up, ad-hoc expenses). A healthy monthly budget for a salaried individual in metro India typically allocates 30–40% to fixed obligations, 30–35% to necessities, 10–15% to discretionary, and maintains 15–20% surplus. If your fixed obligations exceed 50% of in-hand salary, you're over-leveraged and should reassess before adding more EMIs or fixed commitments.

Tip: Build the budget around your lower take-home estimate from Step 3, not the higher estimate — use the surplus for additional SIPs rather than fixed obligations.