Old Regime Deductions
What is In-Hand Salary and Why It's Important
Your in-hand salary is the amount you actually receive in your bank account after all deductions like tax, PF contributions, and gratuity. This calculator helps you estimate that amount accurately under both the old and new tax regimes.
Key Components in Salary Structure
- Annual CTC: Total cost to company including employer PF, gratuity, bonuses, etc.
- Employer PF: Part of CTC, but not part of your take-home salary.
- Employee PF: Deducted from your gross salary every month.
- Gratuity: Paid by the employer, not part of monthly salary.
- Tax: Income tax based on applicable regime and slab rates.
Old vs New Tax Regime Comparison
You can choose between the Old Tax Regime (which allows deductions under sections like 80C, HRA, etc.) or the New Tax Regime (which offers lower tax rates but disallows most deductions).
Old Tax Regime Highlights:
- Standard deduction of ₹50,000
- Deductions allowed under Section 80C, 80D, HRA, and others
- Suitable if you have high investments or deductions
New Tax Regime Highlights:
- Standard deduction of ₹75,000
- No other deductions allowed (except NPS employer contribution, 87A rebate)
- Lower tax rates for most slabs
- Default regime unless opted out
Visual Breakdown
The doughnut chart helps you visually understand how much of your salary goes into:
- In-Hand Salary: Actual take-home pay
- Employee PF: Your contribution towards retirement
- Tax: Annual income tax payable
Tips to Maximize In-Hand Salary
- Use deductions wisely under the old regime (if eligible)
- Optimize HRA and 80C investments
- Compare both regimes annually based on your salary structure
- Consult with a tax advisor for personalized optimization
Income Tax Slabs
Old Tax Regime
| Income Range (₹) | Tax Rate |
|---|---|
| 0 – 2,50,000 | Nil |
| 2,50,001 – 5,00,000 | 5% |
| 5,00,001 – 10,00,000 | 20% |
| Above 10,00,000 | 30% |
New Tax Regime (FY 2025–26)
| Income Range (₹) | Tax Rate |
|---|---|
| Up to 4,00,000 | Nil |
| 4,00,001 – 8,00,000 | 5% |
| 8,00,001 – 12,00,000 | 10% |
| 12,00,001 – 16,00,000 | 15% |
| 16,00,001 – 20,00,000 | 20% |
| 20,00,001 – 24,00,000 | 25% |
| Above 24,00,000 | 30% |
This calculator empowers you to make informed financial decisions by comparing tax regimes and understanding your net take-home salary.
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