Standard Deduction: ₹50,000 (salaried & pensioners)
Section 87A rebate up to ₹7,00,000 income
Marginal relief available on rebate
No major deductions like 80C, 80D allowed
FY 2025-26
Tax Slabs
Income Range (₹)Tax Rate
Up to ₹4,00,000Nil
₹4,00,001 - ₹8,00,0005%
₹8,00,001 - ₹12,00,00010%
₹12,00,001 - ₹16,00,00015%
₹16,00,001 - ₹20,00,00020%
₹20,00,001 - ₹24,00,00025%
Above ₹24,00,00030%
Key Features
Standard Deduction: ₹75,000 (salaried & pensioners)
Section 87A rebate up to ₹12,00,000 income
Marginal relief available on rebate
No major deductions like 80C, 80D allowed
Key Changes in FY 2025-26
Increased basic exemption limit from ₹3L to ₹4L
Enhanced standard deduction from ₹50,000 to ₹75,000
Increased tax rebate limit from ₹7L to ₹12L
Added new tax slab of 25% for income between ₹20L - ₹24L
Restructured tax slabs with wider ranges for better tax distribution
Zero tax liability for income up to ₹12.75L (with standard deduction)
Frequently Asked Questions
How is in-hand salary calculated from CTC?
In-hand salary is CTC minus all deductions: Employee PF (12% of basic up to ₹15,000), Professional Tax, and Income Tax based on your applicable tax regime.
What is the difference between old and new tax regime?
The old regime allows Chapter VI-A deductions (80C, 80D, etc.) with slabs from ₹2.5L. The new regime offers zero tax up to ₹12L in FY 2025-26 but removes most deductions.
What is EPF and how much is deducted?
Employee Provident Fund (EPF) requires 12% of basic salary (capped at ₹15,000/month) from both employee and employer. The employee share reduces your take-home.
What is professional tax?
Professional Tax is a state-level tax on salaried employees (max ₹2,500/year). States like Delhi and Gujarat do not levy it.
How accurate is this salary calculator?
This gives a reliable estimate based on standard component assumptions. Actual take-home may vary by company structure, variable pay, perquisites and other deductions.