Steps
- Basic salary = CTC x basic share (default 40%).
- Employee PF = 12% of basic, capped at the monthly wage ceiling of ₹25,000 unless you choose full basic. Employer PF is taken as equal and removed from CTC when your CTC includes it.
- Gross salary = CTC less employer PF.
- Taxable income = gross less standard deduction of ₹75,000.
- Income tax from the slabs below, then the rebate: no tax when taxable income is up to ₹12,00,000 (rebate of up to ₹60,000); just above that, tax is limited to the amount over ₹12,00,000.
- Add 4% health and education cess.
- Take-home = gross less employee PF, professional tax and income tax with cess.
New regime slabs used
| Taxable income | Rate |
|---|---|
| Up to ₹4,00,000 | 0% |
| ₹4,00,000 to ₹8,00,000 | 5% |
| ₹8,00,000 to ₹12,00,000 | 10% |
| ₹12,00,000 to ₹16,00,000 | 15% |
| ₹16,00,000 to ₹20,00,000 | 20% |
| ₹20,00,000 to ₹24,00,000 | 25% |
| Above ₹24,00,000 | 30% |
What it does not cover
- The old tax regime, HRA, 80C, 80D and other deductions.
- Surcharge (taxable income above ₹50 lakh), so the calculator stops there.
- Gratuity, bonus timing, reimbursements, NPS and other employer-specific items.
- Professional tax differs by state; enter your own monthly figure.
Sources and review
- PIB, Ministry of Labour and Employment: EPFO wage ceiling raised to Rs 25,000 from 17 September 2026, Gazette Notification S.O. 5109(E) (23 Sep 2026)
- SCC Online: Labour Ministry notifies EPF wage ceiling of 25,000 (19 Sep 2026)
- Income Tax Department: slab rates, rebate, surcharge and cess for individuals (AY 2026-27), old and new regime
Rules last reviewed on 9 November 2026 for FY 2026-27 (AY 2027-28). The slab rates above are those published by the Income Tax Department for AY 2026-27; coverage of Budget 2026 reports no change to them for FY 2026-27. The standard deduction of ₹75,000 and the unchanged slabs for FY 2026-27 follow widely published coverage of the Budget 2025 and Budget 2026 announcements; we have not yet found them stated in an Income Tax Department page, so treat them as reported, not confirmed. The EPF wage ceiling changed to ₹25,000 from 17 September 2026. This is confirmed by a Government of India (PIB) release citing Gazette Notification S.O. 5109(E). If you spot a rule that has changed, please tell us.