How it works
Employers quote cost to company, which is larger than the amount that reaches your account. This estimate treats basic pay as a share of CTC, sets employer provident fund at 12% of basic with an optional ₹1,800 monthly cap, and subtracts an equal employee contribution plus professional tax. Optional income tax uses the new regime for FY 2026-27: a ₹75,000 standard deduction, the seven-slab rates, the rebate up to ₹12 lakh of taxable income, marginal relief, and 4% cess. Surcharge is not included.
In-hand = monthly gross − employee PF − professional tax − monthly tax.