Rules for FY 2026-27
Take-home is your gross salary minus employee PF (12% of Basic, at most ₹1,800 a month on the ₹15,000 ceiling), ESI if your gross is ₹21,000 or less, professional tax and income tax — and under the new regime a salary of up to ₹12,75,000 pays no income tax at all.
New to this? Tap ⓘ beside anything for a plain-English explanation, or read the words used here.
12 lakh
That is ₹50,000 a month.
Enter an amount
Leave at ₹0 if you are not sure — it only changes the old regime.
Your take-home · FY 2026-27
₹93,788a month
₹11,25,452 a year under the new regime — ₹12,274 a month more than the old regime.
New regime
₹93,788
Tax ₹0 a year
Old regime
₹81,514
Tax ₹1,47,280 a year
Where your ₹12,00,000 CTC goes, a year (new regime)
| Item | New | Old |
|---|---|---|
| Gross salary | ₹95,796 | ₹95,796 |
| Your PF | −₹1,800 | −₹1,800 |
| Professional tax | −₹208 | −₹208 |
| Income tax | ₹0 | −₹12,273 |
| In hand | ₹93,788 | ₹81,514 |
An estimate from the same functions Facto Lite’s payroll runs, for FY 2026-27. Not tax or legal advice. Nothing you type leaves this page.
Read the guide: CTC to In-Hand Salary: Structuring the Breakup →
Monthly take-home by CTC, FY 2026-27, Karnataka, Basic at 50% of CTC, PF on the ceiling, gratuity in CTC, no old-regime deductions
What each field and each line of the result means, where to find it, and what to do if you do not know it.
Everything your employer spends on you in a year: your salary, plus their own PF contribution, the gratuity they set aside, and any bonus or insurance they choose to count. It is the big number on an offer letter — not what reaches your bank.
Look for “CTC”, “annual CTC” or “total cost to company” on your offer letter. Enter it for the whole year.
For example: A ₹12,00,000 CTC comes to about ₹93,788 a month in hand under the new regime, in Karnataka.
The fixed core of your salary. PF, gratuity and several allowances are worked out as a percentage of it, so it decides how much is deducted.
Your offer letter or payslip lists it as “Basic” (sometimes “Basic + DA”). Divide it by your CTC to get the percentage. Not sure? Keep 50% — most companies set Basic at 40–50% of CTC, and the labour codes push it towards half.
For example: At 50% of a ₹12,00,000 CTC, Basic is ₹50,000 a month.
A small tax some states charge on salaries. Your employer deducts it every month and pays it to the state. No state may charge more than ₹2,500 in a year.
Pick the state you work in (where your office is), not where you are from. It is worked out here for Karnataka, Maharashtra and Tamil Nadu; for other states it is left out, and the list says so.
For example: In Karnataka it is ₹200 a month once your salary is ₹25,000 or more, and ₹300 in February — ₹2,500 for the year.
Retirement savings run by the government. 12% of your Basic is taken from your salary every month, and your employer puts in the same again. You get it back later, with interest.
Most employers deduct on Basic up to ₹15,000 — at most ₹1,800 a month. Some deduct on your full Basic: less in hand, more saved. Your payslip’s PF line tells you which: ₹1,800 means the ceiling.
For example: Basic of ₹50,000 on the ceiling: ₹1,800 from you, ₹1,800 from your employer. On full Basic: ₹6,000 each.
A lump sum your employer pays when you leave after five or more years. Many employers set money aside for it every month and count that in your CTC, even though you never receive it monthly.
If your offer letter lists “Gratuity” as a line in the CTC breakdown, choose Yes. If it does not mention gratuity, choose No.
For example: The monthly provision is 15/26 of a month’s Basic for each year — about 4.81% of Basic.
Amounts that lower the income you are taxed on — but only if you choose the old tax regime. The new regime ignores them.
Add up, for the year: 80C investments (PF, PPF, ELSS, life insurance — at most ₹1,50,000 counts), 80D health insurance, HRA exemption if you pay rent, and home-loan interest. Not sure? Leave it at 0.
For example: Investing ₹1,50,000 in 80C and paying ₹25,000 for health insurance: enter ₹1,75,000.
The old tax regime lets older people earn more before tax starts: ₹2,50,000 below 60, ₹3,00,000 from 60 to 79, and ₹5,00,000 at 80 or over. The new regime is the same for everybody.
Use your age on 31 March at the end of the financial year.
Your monthly salary before anything is taken out: Basic plus every allowance (HRA, special allowance and so on). It is your CTC without the employer’s PF and gratuity.
On a payslip it is usually “Gross earnings” or “Total earnings”.
Health insurance for lower-paid employees. If your gross salary is ₹21,000 a month or less, 0.75% is deducted from it and your employer adds 3.25%. Above that, nothing.
Tax on your salary. Your employer works out the tax for the whole year, deducts a twelfth of it every month (called TDS — tax deducted at source) and pays it to the government for you.
For example: Under the new regime a salary of up to ₹12,75,000 a year pays no income tax.
Two ways of working out income tax; you choose one each year. The new regime has lower rates and no deductions. The old regime has higher rates but lets you subtract things like 80C investments and HRA.
The new regime takes ₹75,000 off your salary before tax (the old one, ₹50,000), and charges nothing up to ₹12,75,000. The calculator works out both and shows which leaves you more.
What actually reaches your bank account each month: gross salary minus your PF, ESI, professional tax and income tax.
Old vs new tax regime calculator
The new regime costs less for most salaried people — a salary of up to ₹12,75,000 pays no tax at all — and the old regime wins only when HRA, 80C, 80D, home-loan interest and NPS together take off more than a break-even amount: on a ₹15,00,000 salary, ₹5,43,800 a year.
Salary slip generator
A salary slip lists the month’s earnings — Basic, HRA and allowances — then the deductions — PF at 12% of Basic, ESI if gross pay is ₹21,000 or less, professional tax and income tax — and the net pay in figures and in words. Fill in yours and download it as a PDF.
Offer letter format
An offer letter names the job, the proposed date of joining and the annual CTC, says the offer is subject to verification and that an appointment letter follows on joining, and gives a date to accept by, with a line for the candidate to sign. Fill yours in and download it as a PDF.
Facto Lite works this out for every employee, every month — from their real structure, attendance and declarations. See Payroll.
Sixty days of Facto Lite free, no card. Salary structures, PF, ESI, professional tax and TDS on every payslip, and a pre-flight that catches what is wrong before anybody is paid.