SalrydCalculate

Terms & Assumptions

Salryd's tools give estimates for informational purposes — they are not tax, legal, or financial advice. Here is exactly what we assume, and why.

Income tax (FY2026-27)

We use the income tax slabs, standard deduction, and Section 87A rebate figures for FY2026-27 (unchanged from Finance Act 2025 under Union Budget 2026), for both the new and old regimes, including marginal relief near the rebate threshold. We do not model surcharge, which only applies above ₹50 lakh of net taxable income.

Old regime deductions

Under the old regime, we apply the standard deduction and HRA exemption under Section 10(13A) — including the 8-city metro list (Delhi, Mumbai, Kolkata, Chennai, Bengaluru, Hyderabad, Pune, Ahmedabad) effective from FY2026-27. We do not model other optional deductions like Section 80C (PF, ELSS, insurance) or 80D (health insurance), which could further reduce old-regime tax if you claim them.

Provident Fund (PF)

Under the EPF Scheme 2026 (effective June 2026), mandatory PF is capped at 12% of the ₹15,000/month statutory wage ceiling — ₹1,800/month per side — regardless of actual basic salary. Contributions above this are voluntary. Our calculator lets you choose whether your employer calculates PF on this statutory ceiling or on your full basic salary, since practice varies by employer.

Gratuity provision

We estimate the gratuity your employer provisions for within your CTC using the standard formula — (Basic × 15) / 26 per year — even though this amount is only paid out after 5+ years of continuous service, not monthly.

Professional tax

We calculate professional tax precisely for Maharashtra, Karnataka, West Bengal, Telangana, Andhra Pradesh, Gujarat, and Madhya Pradesh. States with no professional tax show ₹0. For states with a half-yearly slab system (Tamil Nadu, Kerala) or without a verified slab table in our system, we don't include a figure at all — we'd rather show nothing than guess.

Salary breakup (Basic & HRA)

CTC structuring varies by employer — there's no universal formula. By default, we estimate Basic as 50% of CTC and HRA as 50% of Basic, a common but not universal convention. You can edit these to match your actual offer letter for a precise result.

Bonus & variable pay

Bonus is taxed at your marginal rate on top of your fixed salary and shown separately from your guaranteed monthly in-hand figure, since it typically isn't paid every month.