Payroll Calculator

What this calculator does

Enter your annual gross salary and this calculator splits it into Basic Salary, HRA, and Special Allowance, then works out your monthly take-home pay after Provident Fund (PF) contribution, Professional Tax, and Income Tax (TDS) deductions - under either the New or Old income tax regime (India).

Formulas used

Salary components:

$$Basic = Gross \times \frac{basicPercent}{100}$$ $$HRA = Basic \times \frac{hraPercent}{100}$$ $$SpecialAllowance = Gross - Basic - HRA$$

Deductions:

$$EmployeePF = Basic \times \frac{pfPercent}{100}$$

Taxable income:

$$TaxableIncome_{new} = Gross - StandardDeduction_{new}(75{,}000)$$ $$TaxableIncome_{old} = Gross - StandardDeduction_{old}(50{,}000) - \min(EmployeePF, 1{,}50{,}000)$$

Income tax is then computed by applying the applicable slab rates to the taxable income, plus a 4% health and education cess. A full rebate under Section 87A applies when taxable income is at or below ₹7,00,000 (new regime) or ₹5,00,000 (old regime).

New Regime slab (₹)	Rate
0 - 3,00,000	0%
3,00,001 - 7,00,000	5%
7,00,001 - 10,00,000	10%
10,00,001 - 12,00,000	15%
12,00,001 - 15,00,000	20%
Above 15,00,000	30%

Old Regime slab (₹)	Rate
0 - 2,50,000	0%
2,50,001 - 5,00,000	5%
5,00,001 - 10,00,000	20%
Above 10,00,000	30%

Net take-home:

$$MonthlyNet = \frac{Gross - EmployeePF - (ProfessionalTax + IncomeTax) \times 12 - OtherDeductions \times 12}{12}$$

How to use

1. Enter your Annual Gross Salary.
2. Adjust Basic Salary (% of Gross) and HRA (% of Basic) to match your offer letter or company policy.
3. Set your Employee PF Contribution (% of Basic) - typically 12%.
4. Enter your monthly Professional Tax (varies by state, commonly ₹200) and any Other Monthly Deductions.
5. Choose your Income Tax Regime - New or Old.
6. Click Calculate to see your monthly and annual take-home pay, along with a full component-wise breakdown table.

Example

For an annual gross salary of ₹9,00,000 with 40% Basic, 50% HRA, 12% employee PF, ₹200/month professional tax, and the New Regime:

$$Basic = 9{,}00{,}000 \times 0.40 = 3{,}60{,}000$$ $$HRA = 3{,}60{,}000 \times 0.50 = 1{,}80{,}000$$ $$SpecialAllowance = 9{,}00{,}000 - 3{,}60{,}000 - 1{,}80{,}000 = 3{,}60{,}000$$ $$EmployeePF = 3{,}60{,}000 \times 0.12 = 43{,}200$$ $$TaxableIncome = 9{,}00{,}000 - 75{,}000 = 8{,}25{,}000$$

At ₹8,25,000 taxable income under the New Regime, tax works out to roughly ₹33,800 (including cess), giving a monthly take-home of approximately ₹68,400 after all deductions.

Notes and simplifications

• This is a simplified model built for quick estimates, not a substitute for a payslip or a tax professional.
• The Provident Fund wage ceiling (₹15,000/month) is not applied - PF is calculated on the full Basic Salary, which matches how many employers structure it in practice, but yours may differ.
• Under the Old Regime, HRA exemption and investment-linked deductions (Section 80C beyond employee PF, 80D, etc.) are not modeled - only a standard deduction and the employee PF contribution (capped at ₹1,50,000) are subtracted before applying slab rates.
• Employer-side contributions (employer PF, gratuity) are not part of this calculation - the "Annual Gross Salary" you enter is what you receive before employee-side deductions, not your CTC.