Estimate monthly take-home from annual gross using centralized tax + PF logic. If you only know Basic+DA, we can derive PF; if you know PF, enter it directly.
How SalaryExit calculates estimates (methodology, FY scope, and limits).
Output is a modeled estimate from FY slabs + PF rules in code — not your employer’s payroll system. Ambiguous inputs are blocked with an explicit message (see accuracy card).
Engine snapshot: gross ₹18,00,000/year, new regime, PT ₹2,500/year, Basic+DA ₹9,00,000/year (PF derived). Estimated monthly in-hand ₹1,35,425. Cross-check by entering annual PF from payslips instead of Basic+DA.
The engine needs a single PF source to avoid double-counting. Use payslip PF if you have it; otherwise use Basic+DA to derive PF under configured assumptions.
No. It uses employee-side deductions and income-tax estimate on gross — adjust gross if your CTC definition differs.
When an employer offers you a job in India, the number in the offer letter is usually CTC — Cost to Company. This includes everything the employer spends on you: your salary, employer PF contribution, group insurance premiums, and sometimes a gratuity accrual. Your actual monthly bank credit (in-hand salary) is always lower than CTC divided by 12, often substantially so.
Three categories of deductions explain the gap. First, your employee PF contribution — typically 12% of your PF wage (Basic + DA or a capped PF wage, depending on employer policy) — is deducted before any cash reaches you. Second, professional tax (PT) is a state-specific levy, usually collected monthly from payroll and ranging from zero (some states) to around ₹200–250 per month in states like Maharashtra and Karnataka. Third, TDS (Tax Deducted at Source) is your estimated annual income tax spread across 12 months. Under FY 2025-26 rules, new-regime employees with taxable income up to ₹12 lakh pay zero income tax after the Section 87A rebate — but TDS is still computed and spread every month until actual liability is zero.
The regime choice (old vs new) has a direct, sometimes large, effect on in-hand. The new regime offers a ₹75,000 standard deduction (FY 2025-26) and lower slab rates, making it the default for many employees — especially those with fewer deductions. The old regime allows deductions like Section 80C (up to ₹1.5 lakh), HRA exemption, and others that can make it worth more for employees with high rent or large investments. Use the tax regime comparison calculator to see which produces a lower annual liability for your specific numbers.
Common mistakes when reading an offer letter: treating CTC as a monthly number (divide by 12 to get gross, then apply deductions); assuming all components are paid monthly (bonus and variable pay are often paid quarterly or annually); and ignoring PF wage definition differences between employers (the same CTC at two companies can produce different monthly PF deductions and different in-hand).