How this calculator works
This calculator handles the full complexity of Indian salary taxation including surcharges that apply to high earners — something most calculators miss.
Surcharge on high incomes
Beyond the standard tax slabs, India levies additional surcharges on high incomes:
| Taxable income | Surcharge rate | Effective top rate (incl. cess) |
|---|---|---|
| Up to ₹50 lakh | Nil | 31.2% (30% + 4% cess) |
| ₹50 lakh – ₹1 crore | 10% | 34.32% |
| ₹1 crore – ₹2 crore | 15% | 35.88% |
| ₹2 crore – ₹5 crore | 25% | 39% |
| Above ₹5 crore | 37% | 42.74% |
Note: Under the new tax regime (from FY2023-24 onwards), the maximum surcharge is capped at 25%, making the effective top rate 39% instead of 42.74%. This makes the new regime significantly better for incomes above ₹5 crore.
What this calculator assumes
- Basic salary is the percentage you set (default 40% of CTC)
- Employee PF is 12% of basic, capped at ₹1,800/month (₹15,000 wage ceiling)
- Employer PF and gratuity are subtracted from CTC before calculating monthly gross (if checked)
- HRA exemption applies if you pay rent — calculated as min(HRA received, 50%/40% of basic, rent − 10% of basic)
- Standard deduction: ₹75,000 under new regime, ₹50,000 under old regime