Understanding your take-home salary from a ₹12 LPA CTC involves accounting for your basic salary, allowances, and mandatory deductions such as EPF, taxes, and others. Here’s how you can estimate your monthly in-hand salary.
Your CTC typically includes:
Several deductions are made from your gross salary:
In the Union Budget 2025-26, the government introduced zero tax on income up to ₹12 lakh, applicable only for those choosing the new tax regime in FY 2025-26. Despite the tax exemption, individuals must still file an income tax return (ITR), as the benefit is provided through a tax rebate under Section 87A of the Income Tax Act, 1961.
Let’s break down the calculations:
Total Gross Monthly Salary is a sum of Basic, HRA, and other Allowances.
Deductions:
Calculate your total in-hand salary using this Salary Calculator.
Gross Monthly Salary minus total deductions.
For precise calculations, you can use online salary calculators. These tools allow you to input your CTC and provide detailed breakdowns of your salary components and deductions based on your individual situation.
Read More: Paying Rent to Family? Here’s How to Stay Out of the Income Tax Department’s Radar in FY 2025-26.
Your exact take-home salary depends on several factors, including the specific structure of your CTC, applicable deductions, and personal tax planning. Online salary calculators can help you get a more accurate estimate tailored to your circumstances.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
Investments in securities market are subject to market risks, read all the related documents carefully before investing.
Published on: Apr 28, 2025, 2:52 PM IST
Neha Dubey
Neha Dubey is a Content Analyst with 3 years of experience in financial journalism, having written for a leading newswire agency and multiple newspapers. At Angel One, she creates daily content on finance and the economy. Neha holds a degree in Economics and a Master’s in Journalism.
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