Question 1

What does this salary calculator estimate?

Accepted Answer

This calculator estimates salary income after income tax from the salary amounts and tax inputs you enter. It is not a payroll or CTC-to-bank-credit calculator: employer benefits, employee PF, professional tax, insurance, reimbursements, bonuses and other payroll adjustments must be checked separately.

Question 2

How is Employee PF deducted from monthly basic salary?

Accepted Answer

For an employee covered by the statutory EPF framework, the usual contribution rate is 12% of covered wages from both employee and employer, subject to the scheme rules and wage ceiling. Part of the employer contribution may go to EPS at 8.33% of pensionable salary, generally capped at ₹15,000 unless a valid higher-pension arrangement applies.

Question 3

What is Professional Tax and how much is deducted monthly?

Accepted Answer

Professional Tax is a state-level tax levied on salaried individuals. It varies by state (e.g., ₹200/month in Karnataka and Maharashtra, with ₹300 in February) and is capped by the Constitution of India at a maximum of ₹2,500 per year.

Question 4

Does the default tax regime always produce a higher monthly salary?

Accepted Answer

No. The default regime can produce lower estimated income tax for some taxpayers, but the result depends on total income, residency, special-rate income and deductions available under the alternative regime. Payroll take-home also depends on PF, professional tax and employer-specific deductions that this income-tax estimate does not model.

Question 5

Can I change my choice between Old and New Tax Regime during the year?

Accepted Answer

Salaried employees can declare their preferred tax regime to their employer at the start of the financial year for monthly TDS calculations. You can also switch regimes when filing your annual ITR, provided you do not have business or professional income.

Take-Home Salary Calculator (FY 2026-27)

Income Tax Calculator (Tax Year 2026-27)

New Regime Has the Lower Estimate

Gross Income vs Estimated Income Tax (New Regime)

Frequently Asked Questions (FAQs)