How this calculation works
Compare estimated monthly take-home pay under the old and new regimes for India Tax Year 2026–27 (1 April 2026–31 March 2027). CTC is not the cash credited to your bank: employer PF, gratuity and other non-cash employer benefits are removed first. Employee PF, professional tax and estimated income tax then reduce the cash salary. The comparison uses your eligible deductions; it does not assume the same tax treatment in both regimes.
Worked example
This example uses illustrative inputs. Your current result is shown above.
For Tax Year 2026–27, take ₹12,00,000 annual CTC, basic salary at 50% of CTC, ₹72,000 employer PF and employee PF at 12% of basic. Set gratuity, other employer benefits, HRA, rent, professional tax, other income and optional deductions to zero. Gross cash salary is ₹11,28,000 and employee PF is ₹72,000. New-regime taxable salary is ₹10,53,000 after the ₹75,000 standard deduction; the model’s rebate reduces income tax to zero, leaving ₹88,000 per month. Old-regime taxable salary is ₹10,78,000; ₹1,41,336 tax including cess leaves ₹76,222 per month.
Assumptions and limits
- For ordinary salary income up to ₹50 lakh; surcharge and special-rate income are excluded.
- HRA exemption is old-regime only and uses entered rent and metro status.
- Payroll timing and employer policies can differ.
Questions people ask
Which tax year does this salary estimate use?
It models ordinary salary income for Tax Year 2026–27, covering 1 April 2026 to 31 March 2027. This is different from Assessment Year 2026–27, which refers to income earned in the preceding financial year. Select the correct period in the official tax estimator when cross-checking.
Why is CTC divided by 12 higher than the monthly result?
CTC can include employer PF, gratuity and benefits that are not monthly cash salary. Employee PF and tax are further deductions. Variable bonuses and payroll timing can also make actual monthly deposits differ from an annual average.
Should I include employee PF in old-regime deductions?
Employee PF is removed from take-home cash automatically. If eligible, include it within the total old-regime deductions you enter, subject to the applicable deduction limits. A cash deduction and an income-tax deduction are different steps; avoid claiming the same tax deduction twice.
Can this estimate handle every type of income?
No. It is for the supported ordinary-income scenario up to ₹50 lakh taxable income. Capital gains, surcharge, business income, special exemptions and other complex cases need their own treatment and the official tax estimator.