What is the difference between CTC and in-hand salary?
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CTC (Cost to Company) is the total annual cost an employer spends on an employee, including employer PF, gratuity and allowances. In-hand salary is the amount credited to the bank after employee PF, ESI, TDS and professional tax. In India, in-hand is typically about 65–80% of CTC depending on pay level and tax regime.
How is in-hand salary calculated from CTC in India 2026?
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Remove employer PF (about 12% of basic) and gratuity from CTC to get gross. Split gross into basic, HRA and allowances. Deduct employee PF, ESI if applicable, TDS for your tax regime, and professional tax. The remainder is monthly in-hand salary.
Which is better — New Tax Regime or Old Tax Regime in FY 2026–27?
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For most salaried employees in FY 2026–27, the New Tax Regime is better because lower slabs and the Section 87A rebate make income up to about ₹12 lakh effectively tax-free with a ₹75,000 standard deduction. The Old Regime helps mainly if 80C, HRA, 80D and home-loan deductions are very high.
What is PF deduction and how is it calculated on salary?
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Provident Fund is 12% of Basic + DA for both employee and employer. The employee 12% is deducted from salary into EPF. The employer 12% splits into EPS (8.33%, capped on ₹15,000) and EPF (3.67%), plus small EDLI/admin charges.
Is HRA fully tax-exempt?
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No. HRA exemption is the lowest of actual HRA, rent paid minus 10% of basic, or 50% of basic in metros (40% non-metro). Under the New Tax Regime, HRA exemption is not available.
What is Professional Tax and who pays it?
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Professional tax is a state levy deducted from salary. Maharashtra and Karnataka commonly charge ₹200/month; some states charge less or nothing. The annual maximum across India is ₹2,500.
What is ESI and when is it applicable?
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ESI applies when monthly gross is ₹21,000 or below. Employees contribute 0.75% and employers 3.25% of gross for health and social security benefits.
Is the CoreHRx salary calculator free?
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Yes. The CoreHRx salary calculator is free forever with no signup. For automated payroll (PF, ESI, TDS for every employee), CoreHRx plans start at ₹29 per employee per month.
