Calculation order
CTC to bank credit
We begin with annual CTC, subtract modeled employer PF, gratuity and employer ESI to arrive at cash gross, then subtract employee PF, ESI, state professional tax and estimated annual income tax. The displayed monthly estimate is annual take-home divided by twelve; variable pay can make an individual month differ.
Default scenarios use a 40% basic-pay share of fixed CTC, statutory-capped PF, gratuity included in CTC, no ESI and the FY 2026–27 new regime for a resident salary-only individual under age 60. The calculator exposes these assumptions for editing.
Sources and limits
Central income-tax rules use the FY 2026–27 Union Budget memorandum. PF is a basic-pay CTC assumption, gratuity is an annual provision approximation, and the annualized ESI model does not include contribution-period continuation.
Automatic professional-tax schedules are limited to Assam, Karnataka, Maharashtra, Telangana and West Bengal. All other states and union territories require a manual annual professional-tax amount from a payslip or payroll record; the calculator does not assume their legal tax is zero.