The salary calculator or in hand salary calculator is a tool to calculate your in hand salary or salary you take to your home. It is the total amount that an employee receives after all deductions, taxation, and allowances. In hand salary is a part of your CTC. So while many of you think that in hand salary is the same as CTC, they are not.
While the Cost to Company (CTC) is what a company offers you, in hand salary is a part of it. An employee receives in hand salary after settling all deductions, allowances, taxations, and more. For example, if you receive 10 LPA in hand salary, then your CTC must be more than this amount including taxes you pay, allowances you receive, PFs, or other deductions.
As per the new budget of 2025, the income tax slab has changed, and individuals will get an exemption of income tax for income up to Rs 12 Lakh. Here, in this blog, we will discuss 10 LPA in hand salary breakdowns, along with the 10 LPA CTC breakdowns, and how to calculate tax on 10 LPA salary under the new tax regime. Let’s begin with a brief introduction to salary, and its components so you can understand salary breakdown easily.
What is Salary?
Salary is the fixed amount an employee receives for the work they do. Usually, it’s paid at the end of each month, but it can be paid every week, bi-weekly, or semi-weekly. It can also be considered as the investment a company makes in hiring and keeping human resources for corporate operations, hence it is referred to as personnel expense or salary expense.
What is a Salary Calculator?
The salary calculator or in hand salary calculator is a tool that assists in calculating your take-home salary, annual salary, monthly salary, total annual deductions, allowances, and taxation, among other things. The salary calculator helps you calculate the total amount you would be taking home after taxation and considers all bonuses and deductions applicable. To calculate an accurate salary using the salary calculator tool, you must provide the gross salary and total bonus.
Steps to Use a Salary Calculator
To use the salary calculator to determine your take-home salary, follow these steps:
- Decide and select whether you want to determine your annual or monthly salary.
- Now put the gross salary and total bonuses to calculate the Cost To Compay (CTC).
- Fill in your basic salary percentage of the CTC.
By default, the calculator proceeds with your basic salary as 50% of the CTC, however, you may change it as per your need.
Once you enter the required details, the calculator will give you the following details.
- Basic Salary
- HRA
- Other Allowances
- Professional Tax
- Provident Fund
- Total Deductions
- Net Salary
- Income Tax
- Net Salary Post Tax
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Formula For Calculating Salary
Calculating salary involves several components, so there are several formulas to calculate the different components of the salary. Once you have evaluated all aspects, you can calculate your take-home salary. These are the formulas to calculate salary:
- Take-Home Salary = Gross Salary – (Income Tax + Employee Provident Fund (EPF) + Professional Tax (if applicable))
- Gross Salary = Basic Salary + Allowances + Bonuses + Overtime Pay (if applicable)
Gratuity = (Basic Salary + Dearness Allowance) × 15 × (Years of Service) ÷ 26 - Taxable Income = Gross Salary – EPF/PPF Contribution – Tax-Free Allowances – HRA – LTA – Health Insurance Premiums – Tax-Saving Investments (e.g., 80C, 80D) – Other Deductions (e.g., Standard Deduction, Home Loan Interest)
Sample for Calculating Rs 10 LPA Salary
1) Estimated Salary Structure for Rs 10 LPA fixed in hand salary
Here’s the estimated salary structure for ₹10 LPA fixed in-hand salary:
| Component | Monthly (₹) | Annually (₹) |
| Earnings | ||
| Basic Salary | 37,500 | 4,50,000 |
| House Rent Allowance (HRA) | 15,000 | 1,80,000 |
| Conveyance/Transport Allowance | 1,600 | 19,200 |
| Medical Expenses | 1,250 | 15,000 |
| Other/Special Allowances | 28,650 | 3,43,800 |
| Deductions | ||
| EPF Contribution by Employee (12%) | -4,500 | -54,000 |
| Professional Tax | -200 | -2,400 |
| Health Insurance | -1,000 | -12,000 |
| In-hand Salary | 81,800 | 9,81,600 |
2) Estimated Salary Structure for Rs 10 LPA CTC Salary
| Component | Monthly (₹) | Annually (₹) |
| Earnings | ||
| Basic Wage | 37,500 | 4,50,000 |
| House Rent Allowance (HRA) | 15,000 | 1,80,000 |
| Conveyance/Transport Allowance | 1,600 | 19,200 |
| Medical Expenses | 1,250 | 15,000 |
| Other/Special Allowances | 28,650 | 3,43,800 |
| Deductions | ||
| EPF Contribution by Employee (12%) | 4,500 | 54,000 |
| EPF Contribution by Employer (12%) | 4,500 | 54,000 |
| Health Insurance | 1,000 | 12,000 |
| Professional Tax | 200 | 2,400 |
| Net Salary (Total Earnings – Deductions) | 83,350 | 10,00,200 |
3) Estimated Salary Structure for Rs 10 LPA in hand salary per month
| Component | Monthly (₹) | Annually (₹) |
| Earnings | ||
| Basic Salary | 35,000 | 4,20,000 |
| House Rent Allowance (HRA) | 14,000 | 1,68,000 |
| Conveyance/Transport Allowance | 1,500 | 18,000 |
| Medical Expenses | 1,250 | 15,000 |
| Other/Special Allowances | 31,583 | 3,79,000 |
| Total Earnings (Gross Salary) | 83,333 | 10,00,000 |
| Deductions | ||
| EPF Contribution by Employee (12%) | -4,200 | -50,400 |
| Professional Tax | -200 | -2,400 |
| Health Insurance | -1,000 | -12,000 |
| Total Deductions | -5,400 | -64,800 |
| In-hand Salary | 78,000 | 9,35,200 |
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Components on Gross Salary of Rs 10 LPA in hand Salary
1. Basic salary
The basic salary is a part of the CTC that employers pay to employees for their work. Generally, the basic salary is about 40% to 50 % of the total salary. Still, the basic salary can not be calculated, as it depends on various factors like industry, employee designation, and more.
2. House Rent Allowance (HRA)
House Rent Allowance (HRA) is an allowance that a company pays to its employees who stay in a rented property. In case you live in a metro city, HRA is about 50% of the basic salary, while if you reside in a non-metro city, it is about 40% of your basic salary. Under Section 10(13A) of the Income Tax Act, 1961, HRA is partially or completely tax-free, however, in case you live in your own house, and don’t pay rent, HRA is taxable.
3. Leave Travel Allowance (LTA)
It is the allowance given to the employee by the company to help them and their immediate family enjoy the benefits of domestic travel expenses during a vacation. Leave Travel Allowance (LTA) covers only railway tickets or airfare.
As per Section 10(5) of the Income Tax Act, 1961, up to two holidays in a four-year calendar block, the LTA is tax-free. To avail of this exemption, you need to submit proof of travel.
4. Special Allowance
Apart from basic salary, employees are given a special allowance based on various factors. This allowance differs from one company to another, as it is determined by several factors, and is subject to taxation.
5. Bonus
Another component of gross salary that employees receive is bonuses. They receive it as a part of their performance incentives, differ from one company to another, and are completely taxable.
6. Employee Provident Fund (EPF)
Almost every company has a compulsory saving scheme of Provident Fund (PF). In the Employee Provident Fund, employees are required to contribute 12% of their basic salary towards their EPF. Additionally, the employer contributes the same amount as the employee in the EPF account. According to Section 80C of the Income Tax Act, 1961, an employee can deduct their contributions from taxable income, with a limit of up to Rs 1.5 lakhs.
10 LPA in hand Salary New Tax Regime- Tax Liabilities
Under the new tax regime, for FY 2024-25, the salaried employees will get a standard deduction of Rs 75,000. Assuming that no other deductions are available, the total tax liability of a person having a salary of 10 LPA is Rs 44,200. Here is the tax breakup as per both the old tax regime and the new tax regime.
| Particular | Old Tax Regime | New Tax Regime |
| Gross Salary | 10,00,000 | 10,00,000 |
| Less: | ||
| HRA | (1,50,000) | Nil |
| LTA | -40,000 | Nil |
| Children’s education and hostel allowance | -9,600 | Nil |
| Standard Deduction | -50,000 | -75,000 |
| Professional Tax | -2400 | Nil |
| Taxable Salary Income | 7,48,000 | 9,25,000 |
| Less: Deductions | ||
| 80C (Refer to note below)** | (1,50,000) | Nil |
| 80D | -50,000 | Nil |
| 80E | -55,000 | Nil |
| Net Taxable Income | 4,93,000 | 9,25,000 |
| Tax on the above income (Excluding Cess) | 12,150 | 42,500 |
| Rebate u/s 87A ( under the old regime rebate amounts to Rs. 12,500) | -12,150 | Nil |
| Total Tax on Rs 10 lakh (Including Cess) | 0 | 44,200 |
Conclusion
Calculating 10 LPA in hand salary, and 10 LPA CTC salary is quite simple if you use the correct formula. Several free accessible salary calculator tools on the internet would help you find your gross salary, take-home salary, deductions, allowances, and tax liabilities. Knowing the different components of your salary, especially in hand salary is important for managing your expenses, and planning your budget for expenditure. It shows your disposable income, prevents you from overspending, and helps in monitoring your expenses. Besides, knowing your in hand salary will also allow you to negotiate job offers, manage your investments, and long-term financial planning as well.
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FAQs
1) How much income tax do I pay on a 10 LPA salary?
In the 2025 Union Budget presented by Finance Minister Nirmala Sitharaman, it was stated that individuals earning up to Rs 12 LPA will not be required to pay any income tax. So, you won’t have to pay income tax if your salary is 10 LPA.
2) Can I claim deductions under Section 80C?
You can claim deductions under Section 80C under the old tax regime. As per the new tax regime, individuals are not eligible for deduction under Section 80C.
3) Which tax regime should I choose if my salary is Rs.10 LPA?
If your salary is Rs. 10 LPA, then the old regime will be favorable only if you are eligible for deductions of up to Rs. 2,62,500 under Chapter VI-A. Otherwise, the new regime is better.
4) How can I save tax if my salary is Rs 10 LPA?
If your salary is Rs 10 LPA, you can save tax by utilizing various deductions and exemptions available under the Income Tax Act, 1961. For instance, you can invest in instruments listed in Section 80C for a deduction up to Rs 1.5 lakh.
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