Understanding your salary is the first step. Let our advisors help you optimize taxes and grow your wealth.
Understanding Your Salary Breakup
Your salary slip often contains various components. Here's a brief explanation of common terms used in this calculator:
Basic Salary: The core fixed part of your salary, forming the basis for other calculations like PF and HRA (sometimes).
House Rent Allowance (HRA): An allowance given by employers to help employees meet accommodation costs. Tax exemption on HRA depends on certain conditions.
Special Allowance: A fixed allowance given for various purposes, usually fully taxable.
Other Allowances: Can include components like conveyance, medical, LTA, etc. Taxability varies.
Gross Salary: The total salary before any deductions. Calculated as Basic + HRA + Special Allowance + Other Allowances.
EPF Contribution: Employee's Provident Fund is a mandatory retirement saving scheme. Typically, 12% of the Basic Salary (often capped) is deducted as the employee's contribution. The employer usually makes a matching contribution.
Professional Tax (PT): A state-level tax levied on income earned through profession or employment. The amount varies by state and income slab (usually a fixed amount like ₹200/month for many).
Income Tax (TDS): Tax Deducted at Source based on your estimated annual income and tax regime (old vs. new). This calculator requires manual input as accurate calculation is complex.
Net Take-Home Salary: The final amount credited to your bank account after all deductions (Gross Salary - Total Deductions).
Disclaimer: This calculator provides an estimate based on the inputs provided. Actual salary components, PF calculations, and tax deductions can vary based on company policies, state regulations, and individual investment declarations. This tool does not substitute professional financial or tax advice.