What is the new tax regime for FY 2025-26?+
The new regime (Budget 2025) has slabs: 0–4L at 0%, 4–8L at 5%, 8–12L at 10%, 12–16L at 15%, 16–20L at 20%, 20–24L at 25%, above 24L at 30%. Zero tax up to ₹12L via 87A rebate — salaried employees pay zero tax up to ₹12.75L CTC.
How is in-hand salary calculated from CTC?+
In-hand = CTC minus employer PF & gratuity (if in CTC) minus employee EPF minus income tax minus professional tax. Variable pay, medical insurance, and all deductions are handled separately.
Which is better — old or new regime in 2025-26?+
New regime is better for most employees due to zero tax up to ₹12L. Old regime wins only if total deductions (HRA + 80C + NPS + home loan) exceed ₹3–4L annually.
Does CTC include employer PF and gratuity?+
Many companies include employer PF (12% of basic) and gratuity (4.81% of basic) in CTC. These are employer costs — our calculator deducts them accurately so your take-home is correct.
How is EPF calculated?+
Employee EPF = 12% of basic salary per month. Capped at ₹1,800/month if basic is ₹15,000 or less. Employer contributes equally but separately — it does not reduce your take-home.
What is the standard deduction in 2025-26?+
₹75,000 in the new regime and ₹50,000 in the old regime. No investment needed — automatically applied to all salaried taxpayers.