How to Calculate Salary, Take-Home, HRA Exemption, Tax (2026 Guide)
How to calculate salary, take-home, HRA exemption, income tax. Components, formulas, examples, tools. From ₹999. Free salary calculator.
Understanding how salary is calculated is important for both employees and employers. In this guide, we cover how to compute take-home, HRA exemption, and income tax.
Components of Salary
Salary = Basic + HRA + Special Allowance + Other Allowances. Each component has different tax treatment.
Take-Home Calculation
Take-Home = Gross Salary - Employee PF - Professional Tax - Income Tax. Income tax depends on the regime + total income + deductions.
HRA Exemption (Old Regime)
HRA is exempt to the minimum of:
- HRA received from employer
- Rent paid - 10% of basic salary
- 50% of basic (metro) / 40% of basic (non-metro)
Example
Sample: Basic ₹50,000/month, HRA ₹25,000/month, Rent paid ₹20,000/month, Metro (Delhi/Mumbai).
- HRA received: ₹25,000
- Rent paid - 10% basic: ₹20,000 - ₹5,000 = ₹15,000
- 50% of basic: ₹25,000
- Minimum of 3: ₹15,000 (exempt HRA)
- Taxable HRA: ₹25,000 - ₹15,000 = ₹10,000
Income Tax (New Regime, FY 2024-25)
| Income | Rate |
|---|---|
| Up to ₹3L | Nil |
| ₹3L-₹7L | 5% |
| ₹7L-₹10L | 10% |
| ₹10L-₹12L | 15% |
| ₹12L-₹15L | 20% |
| >₹15L | 30% |
Income Tax (Old Regime, FY 2024-25)
| Income | Rate |
|---|---|
| Up to ₹2.5L | Nil |
| ₹2.5L-₹5L | 5% |
| ₹5L-₹10L | 20% |
| >₹10L | 30% |
Standard Deduction
New regime: ₹75,000. Old regime: ₹50,000. From gross salary, before computing tax.
Example: Take-Home for ₹10 LPA
| Item | Value |
|---|---|
| CTC | ₹10,00,000 |
| Employer PF | ₹48,000 |
| Gratuity (provisioned) | ₹19,231 |
| Gross Salary | ₹9,32,769 |
| Standard Deduction | ₹50,000 / ₹75,000 |
| Net Salary (before tax) | ₹8,57,769 - ₹8,82,769 |
| Old regime tax (approx.) | ₹60,000 |
| New regime tax (approx.) | ₹40,000 |
| Employee PF | ₹48,000 |
| Professional Tax | ₹2,500 |
| Net Take-Home (approx., old) | ₹7,30,000-₹7,90,000 |
Tools
- Income Tax Calculator: https://corporatewalla.com/resources/tools/income-tax-calculator
- Salary Calculator: https://corporatewalla.com/resources/tools/salary-calculator
- HRA Calculator: https://corporatewalla.com/resources/tools/hra-calculator
- Gratuity Calculator: https://corporatewalla.com/resources/tools/gratuity-calculator
Frequently Asked Questions
Q: What is the take-home for ₹10 LPA?
A: Approx. ₹60,000-₹70,000/month after PF, PT, and tax. Depends on regime + deductions.
Q: How is HRA calculated?
A: HRA exempt = minimum of (HRA received, rent paid - 10% of basic, 50% of basic for metro / 40% for non-metro).
Q: Should I choose old or new regime?
A: Depends on your deductions. Use our Income Tax Calculator to compare. Typically: new regime for lower deductions, old regime for higher deductions.