In-Hand Salary Calculator (India)
Calculate your in-hand salary in India from gross salary under the new or old tax regime. Get monthly take-home pay, tax liability, and effective tax rate.
About This Calculator
The In-Hand Salary Calculator (India) shows you exactly how much of your gross salary you keep after income tax. Enter your annual gross salary, choose the new or old tax regime, and get your monthly in-hand pay, total tax, and effective tax rate instantly. This calculator is based on the Indian Income Tax Act slabs for FY 2025-26 / FY 2026-27.
The new regime (Section 115BAC) is the default and applies a standard deduction of ₹75,000 with a Section 87A rebate that wipes out tax for income up to ₹12 lakh. The old regime applies a standard deduction of ₹50,000 and lets you claim deductions such as 80C, 80D, HRA exemption, home loan interest, and NPS. The formula is: In-Hand Salary = Annual Gross Salary minus (Income Tax + 4% Health and Education Cess).
Tax Slabs (FY 2025-26 / FY 2026-27):
New Regime:
- Up to ₹4 lakh: Nil
- ₹4 lakh to ₹8 lakh: 5%
- ₹8 lakh to ₹12 lakh: 10%
- ₹12 lakh to ₹16 lakh: 15%
- ₹16 lakh to ₹20 lakh: 20%
- ₹20 lakh to ₹24 lakh: 25%
- Above ₹24 lakh: 30%
Rebate under Section 87A: taxable income up to ₹12 lakh pays zero tax under the new regime.
Old Regime:
- Up to ₹2.5 lakh: Nil
- ₹2.5 lakh to ₹5 lakh: 5%
- ₹5 lakh to ₹10 lakh: 20%
- Above ₹10 lakh: 30%
Key Terms:
- Gross Salary: Your total salary before tax, including basic, HRA, allowances, and bonuses
- Standard Deduction: ₹75,000 (new regime) or ₹50,000 (old regime) flat deduction for salaried employees
- Taxable Income: Gross salary minus standard deduction and eligible deductions
- Section 87A Rebate: Wipes out tax for income up to ₹12 lakh (new regime) or ₹5 lakh (old regime)
- Health & Education Cess: 4% added on the income tax amount
Who Should Use This Calculator?
This calculator is ideal for Indian salaried employees, freelancers comparing job offers, and anyone planning a salary negotiation. It helps you understand your tax burden under both regimes and choose the one that maximizes your monthly in-hand salary.
Frequently Asked Questions
What is in-hand salary?
In-hand salary, also called take-home salary, is the net amount you receive in your bank account after income tax and other deductions are subtracted from your gross salary. It is your monthly gross pay minus tax deducted at source (TDS) under your chosen tax regime.
How is in-hand salary calculated?
In-hand salary is calculated by subtracting your total income tax (including 4% health and education cess) from your gross annual salary. The formula is: In-Hand Salary = Annual Gross Salary - Income Tax. Your taxable income is gross salary minus the standard deduction of ₹75,000 (new regime) or ₹50,000 (old regime) plus any eligible deductions.
What is the difference between gross salary and in-hand salary?
Gross salary is your total salary before any deductions, including basic pay, HRA, allowances, and bonuses. In-hand salary is what you actually receive after income tax is deducted. Gross salary is the figure mentioned in your offer letter, while in-hand salary is what gets credited to your bank account each month.
What is the new tax regime standard deduction in India?
For FY 2025-26 and FY 2026-27, the standard deduction for salaried individuals under the new tax regime is ₹75,000. Under the old regime it is ₹50,000. The new regime also offers a Section 87A rebate that eliminates income tax entirely for taxable income up to ₹12 lakh.
How much tax on 12 lakh salary in India under the new regime?
Under the new tax regime for FY 2025-26, a salaried employee with an annual gross salary of ₹12 lakh pays zero income tax. The standard deduction of ₹75,000 brings taxable income to ₹11.25 lakh, and the Section 87A rebate cancels the computed tax liability in full, so no income tax is payable.
What deductions can I claim under the old regime?
Under the old tax regime you can claim deductions such as Section 80C (up to ₹1.5 lakh for PF, ELSS, life insurance, PPF), Section 80D (health insurance premiums), HRA exemption under Section 10(13A), home loan interest under Section 24(b), and NPS contributions under Section 80CCD. These reduce your taxable income and therefore your tax.
Should I choose the new or old tax regime in India?
The new regime is the default and works best if you have few deductions, since it offers a higher standard deduction of ₹75,000 and zero tax up to ₹12 lakh income. The old regime can be better if you claim large deductions like HRA, 80C, 80D, and home loan interest. Use this calculator to compare both and pick the higher in-hand salary.