Free tool
From cost to company to cash in hand.
Set a cost to company and see the monthly figure the person receives once income tax, provident fund and professional tax come off, under the new or the old tax regime.
What the number tells you.
Cost to company is not take-home
Cost to company includes the employer provident fund, the gratuity provision and, on salaries of ₹21,000 a month or less, the employer’s share of Employee State Insurance, none of which the person sees in a month. Their own provident fund, income tax and professional tax then come off the gross. The gap between the figure you budget and the figure they receive is the whole subject of this page.
Two regimes, and the person chooses
The new regime is the default: a ₹75,000 standard deduction and nothing to declare, with a rebate that cancels the tax where taxable income is ₹12,00,000 or less. The old regime has higher rates and a ₹50,000 standard deduction, but allows the house rent exemption, professional tax and up to ₹1,50,000 under Section 80C, which the person’s own provident fund counts toward. The choice is the person’s, made each year, so the calculator shows both.
House rent, and the eight cities
Under the Income-tax Rules, 2026 the exempt part of the house rent allowance is the least of the allowance received, rent paid less 10% of basic, and half of basic in Mumbai, Delhi, Kolkata, Chennai, Bengaluru, Hyderabad, Pune and Ahmedabad, or 40% anywhere else. Bengaluru, Hyderabad, Pune and Ahmedabad joined the list this tax year. The exemption counts only under the old regime.
Provident fund, full basic or the ceiling
Both provident fund shares are modelled at 12% of the full basic salary, the common arrangement. Since 17 September 2026 the mandatory part is 12% of wages up to ₹25,000 a month, raised from ₹15,000, so an employer may cap each share at ₹3,000 a month. The person then takes home more each month and saves less for retirement. The ceiling option shows that arrangement.
Variable pay and gratuity
Variable pay is part of the cost to company but not of the monthly salary. It is taxed in the year it is paid, so the calculator adds it to the year’s income and shows a twelfth of it each month, which makes the months add up to the year. Gratuity is shown as an indicative provision inside the cost to company; where an employer keeps it outside, clear the option.
What is not modelled here
Home loan interest, health insurance premiums, the person’s own pension contributions, leave travel and any declaration beyond rent and Section 80C. Senior citizen slabs, income from other sources, and the month a bonus is actually taxed in. The figures are estimates for the tax year April 2026 to March 2027, not a payslip.
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