Income Tax Calculator: CTC to Take-Home Wizard
Enter your CTC, get instant salary breakdown with auto-calculated PF, and compare New vs Old tax regime to find which saves you more.
CTC Breakdown
Auto-split into components
PF Auto-Added
To 80C deductions
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All calculations local
Instant Compare
New vs Old Regime
Important Disclaimer
This Income Tax Calculator is based on the provisions of the Income Tax Act, 1961, incorporating the latest tax slabs for FY 2026-27 (AY 2027-28). It includes both New Tax Regime (Section 115BAC) and Old Tax Regime calculations.
This tool is for informational and illustrative purposes only. Actual tax liability may vary based on individual circumstances. Always consult a qualified Chartered Accountant or tax professional before making tax-related decisions.
Primary Income Details
Enter your annual CTC. We'll automatically calculate the salary breakdown.
= Twelve Lakh Rupees
Your total compensation package including all benefits
New Wage Code (effective Nov 2025) mandates minimum 50% basic
Below 60 years
Metro cities get HRA calculated at 50% of basic salary
Annual CTC
₹12,00,000
Gross Salary
₹11,78,400
Monthly Gross
₹98,200
Your Employee PF contribution of ₹21,600 is automatically included in Section 80C deductions for the Old Regime calculation.
Income Tax Calculation in India
Income tax in India is calculated based on different tax slabs and rates. Taxpayers can choose between the old tax regime (with deductions) and the new tax regime (lower rates, fewer deductions) to minimize their tax liability.
Old Tax Regime Benefits
- • Section 80C deductions (up to ₹1.5 lakh)
- • Section 80D medical insurance deductions
- • HRA, LTA, and other allowances
- • Standard deduction (₹50,000)
New Tax Regime Benefits
- • Lower tax rates across income slabs
- • Simplified tax calculation
- • Higher standard deduction (₹75,000)
- • No need to maintain investment proofs
Frequently Asked Questions
What is CTC and how is it different from Gross Salary?
CTC (Cost to Company) is your total compensation package including employer contributions like PF, gratuity, and insurance. Gross Salary is CTC minus these employer contributions. For example, if your CTC is ₹12 LPA with 50% basic, your Gross Salary would be approximately ₹10.8 LPA after deducting employer PF and gratuity.
Which tax regime is better for FY 2026-27?
It depends on your income and deductions. The New Tax Regime offers lower tax rates and a ₹60,000 rebate for income up to ₹12 lakh, but no deductions except standard deduction of ₹75,000. The Old Regime has higher rates but allows deductions under 80C (₹1.5L), 80D, HRA, and home loan interest. Use our wizard to compare both and find your best option.
Is my PF contribution automatically included in 80C?
Yes, your Employee PF contribution is automatically part of Section 80C deductions in the Old Regime. Our calculator auto-calculates your PF from CTC and includes it in 80C. You can add other 80C investments (PPF, ELSS, LIC) separately, with a combined limit of ₹1.5 lakh.
What is the Section 87A rebate in the New Regime?
For FY 2026-27 (AY 2027-28), the New Tax Regime offers a rebate of up to ₹60,000 under Section 87A. This is applied directly to your computed tax liability before cess. If your taxable income is ₹12 lakh or below, you may pay zero tax due to this rebate.
How does the New Wage Code (50% Basic) affect my salary?
The New Wage Code (effective from November 2025) mandates that basic salary should be at least 50% of CTC. This increases your PF contribution (good for retirement) but may reduce immediate take-home pay. Use our calculator to see the exact impact on your salary.
What is the difference between old and new tax regime?
The old tax regime allows various deductions under sections 80C, 80D, etc., while the new tax regime offers lower tax rates but with fewer deduction options. You can choose the regime that results in lower tax liability.
How accurate is this income tax calculator?
Our calculator uses the latest income tax rates and provisions as per Indian tax laws. However, for complex situations involving multiple income sources or special circumstances, consult a qualified tax professional.
Can I calculate tax for multiple assessment years?
Yes, our calculator supports multiple assessment years including AY 2024-25, 2025-26, 2026-27, and 2027-28 with their respective tax slabs and rates to help you plan for current and future years.
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