Is Konnect2Tools free?

Yes. These in-browser tools are completely free to use with no account required for core functionality.

Do my files leave my device?

Browser document operations run locally, except where the operation uses an external service, such as AI summarisation. Read the processing note before using sensitive inputs.

Is the Payroll Calculator tool safe to use?

Local operations process document content on your device. External-service operations may send inputs as described in the processing note. Keep originals and inspect the output.

What is the difference between CTC, gross salary, and net salary in India?

CTC (Cost to Company) = total employer expenditure on the employee, including employer PF contribution (12% of basic), employer ESIC (3.25%), gratuity accrual (4.81% of basic), insurance premium, and all allowances. Gross Salary = CTC minus employer-side contributions = what appears in the offer letter before deductions. Net Salary (take-home) = Gross minus: employee PF (12% basic), employee ESIC (0.75% for eligible), professional tax, and TDS. A ₹12L CTC offer might mean ₹10.8L gross and ₹82,000-88,000 monthly take-home depending on structure and tax regime.

How is TDS on salary calculated for FY 2025-26?

Employer computes: (1) Estimate full-year taxable salary; (2) Under new regime: subtract ₹75,000 standard deduction; (3) Apply new regime slabs; (4) Subtract ₹60,000 rebate if income ≤ ₹12L; (5) Divide annual tax by 12 for monthly TDS. Under old regime: subtract standard deduction ₹50,000, HRA exemption, LTA, 80C-80U deductions declared by employee, then apply old slabs. Employer defaults to new regime from FY 2024-25 unless employee explicitly opts for old regime in writing. Monthly TDS may be recalculated if employee submits revised investment declarations.

Is employer PF contribution part of my CTC?

Yes — in most Indian companies, the employer's EPF contribution (12% of basic, minimum ₹1,800/month if PF wage is ₹15,000) is included in CTC. This means a ₹15L CTC offer where basic is ₹6L per year will include ₹72,000 employer PF as part of CTC — your actual cash salary is ₹15L - ₹72,000 = ₹14.28L. The employer PF portion goes into your EPF account and is accessible at retirement or after leaving employment (with conditions). Similarly, employer ESIC, gratuity, and insurance premiums in CTC do not directly increase your monthly cash salary.

Which tax regime is better for salaried employees in FY 2025-26?

New regime is better for most employees in FY 2025-26 due to significantly improved slabs and the ₹12L effective zero-tax threshold. Old regime retains advantage only when total deductions are very high: combined 80C (₹1.5L) + 80D (₹25K-50K) + Section 24b home loan interest (₹2L) + HRA exemption (₹1-2L+) + NPS 80CCD(1B) (₹50K) can total ₹6-7L, which may tip the scales for incomes in ₹15-25L range with large home loans. The break-even total deduction amount where old regime equals new regime is approximately ₹5-6L for CTC around ₹15-20L — calculate both before submitting declaration to employer.

HR & Payroll Tools

Payroll Calculator

Calculate employee net take-home salary from CTC with full PF, ESI, PT, and tax deductions.

This tool provides an estimate or a starting draft. Check the assumptions and current official requirements before relying on the result. It does not replace qualified financial, legal or medical advice.

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The CTC (Cost to Company) to Net Salary calculator breaks down an Indian employee's compensation package into its actual take-home components. A typical CTC structure includes: Basic Salary (40-50% of CTC), HRA (40-50% of basic), Special Allowance (balancing component), LTA (Leave Travel Allowance), medical allowance, performance bonus, and employer contributions to EPF (12% of basic, capped at ₹1,800 for PF wage ≤₹15,000) and ESIC (3.25% of gross for employees earning ≤₹21,000). Understanding CTC vs gross vs net is critical for offer letter evaluation.

Deductions from gross salary that reduce take-home: Employee EPF contribution (12% of basic+DA, max ₹1,800 if PF wage is ₹15,000 or lower; voluntary contribution allowed beyond statutory), Employee ESI contribution (0.75% of gross, only for gross ≤₹21,000/month), Professional Tax (state-specific, typically ₹200/month in Karnataka, Maharashtra, Andhra Pradesh; nil in several states), and TDS (calculated based on estimated annual income under chosen tax regime). The new vs old tax regime choice dramatically affects monthly TDS.

The calculator compares take-home under both old and new tax regimes, helping employees make an informed decision at the start of the financial year. Under the new regime (FY 2025-26): ₹75,000 standard deduction, revised slabs (0 to ₹4L: nil; ₹4-8L: 5%; ₹8-12L: 10%; ₹12-16L: 15%; ₹16-20L: 20%; ₹20-24L: 25%; above ₹24L: 30%), and ₹60,000 tax rebate for income up to ₹12L making it effectively tax-free. Under the old regime: standard deduction ₹50,000, Section 80C ₹1.5L, Section 24b ₹2L, HRA exemption and other deductions available.

How to use this utility

Use the controls below—paste text, pick files, or adjust options as described on the tool.
Click the main action button. Processing runs in your browser on this device.
Download or copy the output. Check the processing note for any external services used by this operation.

Common use cases

Calculating actual monthly take-home from a ₹15L CTC offer letter from an IT company in Bengaluru
Comparing net salary under old vs new tax regime for an employee with ₹1.5L in 80C investments and ₹20,000 HRA
Understanding breakdown of employer vs employee EPF contributions and how they affect take-home
Estimating monthly TDS deduction after declaring home loan interest of ₹1.8L under old tax regime
Verifying payslip accuracy by independently computing each deduction component

Tips for best results

1Negotiate to maximize non-monetary CTC components — flexible benefit plans, leave encashment, and NPS employer contribution are CTC costs that may not reduce your gross salary tax
2Under FY 2025-26 new regime, income up to ₹12.75L (₹12L income + ₹75K standard deduction) is effectively zero-tax — this makes new regime overwhelmingly better for those with fewer deductions
3EPF contribution beyond statutory amount (Voluntary Provident Fund or VPF) earns 8.25% tax-free — consider VPF for the fixed income portion of your portfolio
4Professional Tax (PT) paid in the year is deductible from gross salary before computing income tax — often missed in self-computations
5If your employer offers NPS contribution under Section 80CCD(2) — up to 10% of basic+DA — this deduction is available even under the new tax regime, unlike most other deductions

Frequently asked questions

Is Konnect2Tools free?: Yes. These in-browser tools are completely free to use with no account required for core functionality.
Do my files leave my device?: Browser document operations run locally, except where the operation uses an external service, such as AI summarisation. Read the processing note before using sensitive inputs.
Is the Payroll Calculator tool safe to use?: Local operations process document content on your device. External-service operations may send inputs as described in the processing note. Keep originals and inspect the output.
What is the difference between CTC, gross salary, and net salary in India?: CTC (Cost to Company) = total employer expenditure on the employee, including employer PF contribution (12% of basic), employer ESIC (3.25%), gratuity accrual (4.81% of basic), insurance premium, and all allowances. Gross Salary = CTC minus employer-side contributions = what appears in the offer letter before deductions. Net Salary (take-home) = Gross minus: employee PF (12% basic), employee ESIC (0.75% for eligible), professional tax, and TDS. A ₹12L CTC offer might mean ₹10.8L gross and ₹82,000-88,000 monthly take-home depending on structure and tax regime.
How is TDS on salary calculated for FY 2025-26?: Employer computes: (1) Estimate full-year taxable salary; (2) Under new regime: subtract ₹75,000 standard deduction; (3) Apply new regime slabs; (4) Subtract ₹60,000 rebate if income ≤ ₹12L; (5) Divide annual tax by 12 for monthly TDS. Under old regime: subtract standard deduction ₹50,000, HRA exemption, LTA, 80C-80U deductions declared by employee, then apply old slabs. Employer defaults to new regime from FY 2024-25 unless employee explicitly opts for old regime in writing. Monthly TDS may be recalculated if employee submits revised investment declarations.
Is employer PF contribution part of my CTC?: Yes — in most Indian companies, the employer's EPF contribution (12% of basic, minimum ₹1,800/month if PF wage is ₹15,000) is included in CTC. This means a ₹15L CTC offer where basic is ₹6L per year will include ₹72,000 employer PF as part of CTC — your actual cash salary is ₹15L - ₹72,000 = ₹14.28L. The employer PF portion goes into your EPF account and is accessible at retirement or after leaving employment (with conditions). Similarly, employer ESIC, gratuity, and insurance premiums in CTC do not directly increase your monthly cash salary.
Which tax regime is better for salaried employees in FY 2025-26?: New regime is better for most employees in FY 2025-26 due to significantly improved slabs and the ₹12L effective zero-tax threshold. Old regime retains advantage only when total deductions are very high: combined 80C (₹1.5L) + 80D (₹25K-50K) + Section 24b home loan interest (₹2L) + HRA exemption (₹1-2L+) + NPS 80CCD(1B) (₹50K) can total ₹6-7L, which may tip the scales for incomes in ₹15-25L range with large home loans. The break-even total deduction amount where old regime equals new regime is approximately ₹5-6L for CTC around ₹15-20L — calculate both before submitting declaration to employer.

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