Methodology

SalaryLens uses a standard, transparent model to convert an annual cash CTC into monthly in-hand pay for FY 2025-26 (AY 2026-27). Here is every step and assumption.

The CTC model

We treat: CTC = gross salary + employer EPF + gratuity, with variable paid separately.

• Basic = a configurable % of CTC (default 45%).
• Employer & employee EPF = 12% of basic each — or 12% of the ₹15,000/month wage ceiling (₹1,800/month) if PF is capped.
• Gratuity = 4.81% of basic per year.
• Standard deduction = ₹75,000 (new regime), ₹50,000 (old regime).
• Professional tax = ₹2,400/year default (varies by state).

New regime slabs (FY 2025-26)

• Up to ₹4,00,000 — 0%
• ₹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%

Section 87A rebate makes taxable income up to ₹12,00,000 effectively tax-free. A 4% health & education cess applies on top.

Old regime slabs (FY 2025-26)

• Up to ₹2,50,000 — 0%
• ₹2,50,001–₹5,00,000 — 5%
• ₹5,00,001–₹10,00,000 — 20%
• Above ₹10,00,000 — 30%

87A rebate up to ₹5,00,000; plus 4% cess. The old-regime side assumes your chosen deductions (80C/80D/HRA, default ₹1.5L) plus the ₹50,000 standard deduction.

What we deliberately simplify

• Surcharge on very high incomes (₹50L+) is not modelled — treat crore-plus results as indicative.
• HRA exemption is approximated via the deductions input, not city-rent rules.
• Stock/RSUs are shown separately and not taxed as perquisite here.

This is an estimate, not tax advice — see the disclaimer. Try it on the calculator.