About the Salary Tax Break Calculator
What is the Salary Tax Break Calculator?
Several parts of a salary are fully or partly tax-free, which is why structuring your CTC well matters. This calculator shows the main salary tax exemptions and how much of your salary becomes taxable in each regime.
Enter your gross and basic salary, HRA received, rent paid, city, LTA claimed, professional tax and employer NPS. The HRA exemption is calculated with the three-limit rule, and a table compares every component under the old and new regimes.
How to use the Salary Tax Break Calculator
- Gross Salary (₹ per year) (sample: 12,00,000)
- Basic Salary + DA (₹ per year) (sample: 6,00,000)
- HRA Received (₹ per year) (sample: 2,40,000)
- Rent Paid (₹ per year) (sample: 2,16,000)
- City (sample: Delhi, Mumbai, Kolkata or Chennai)
- Leave Travel Allowance Claimed (₹, travel within India) (sample: 0)
- Professional Tax Paid (₹ per year) (sample: 2,400)
- Employer NPS Contribution (₹ per year) (sample: 0)
- Press Calculate Salary Tax Breaks (results also refresh as you type). The result card shows the Tax-Free Salary Components (Old Regime), along with HRA exemption, Taxable salary – old regime, Tax-free components – new regime and Taxable salary – new regime.
Formula used
HRA exempt = min(HRA received, 50% or 40% of basic, Rent − 10% of basic)
- 50% / 40% = 50% of basic in Delhi, Mumbai, Kolkata and Chennai; 40% elsewhere
- Employer NPS = exempt up to 10% of basic (old) or 14% (new) under Sec 80CCD(2)
LTA exemption covers only travel fares within India, for two journeys in a four-year block.
Worked example
These are the sample values already filled in the calculator above, and the result it returns for them:
| Input | Sample value |
|---|---|
| Gross Salary (₹ per year) | 12,00,000 |
| Basic Salary + DA (₹ per year) | 6,00,000 |
| HRA Received (₹ per year) | 2,40,000 |
| Rent Paid (₹ per year) | 2,16,000 |
| City | Delhi, Mumbai, Kolkata or Chennai |
| Leave Travel Allowance Claimed (₹, travel within India) | 0 |
| Professional Tax Paid (₹ per year) | 2,400 |
| Employer NPS Contribution (₹ per year) | 0 |
| Result | Value |
|---|---|
| Tax-Free Salary Components (Old Regime) | ₹2,08,400 |
| HRA exemption | ₹1,56,000 |
| Taxable salary – old regime | ₹9,91,600 |
| Tax-free components – new regime | ₹75,000 |
| Taxable salary – new regime | ₹11,25,000 |
| Extra salary exempted by the old regime | ₹1,33,400 |
Tips for using the Salary Tax Break Calculator
- Ask your employer to route part of your pay as employer NPS contribution — it is tax-free in both regimes.
- Keep rent receipts and the landlord's PAN if rent exceeds ₹1 lakh a year.
- Meal cards, telephone reimbursements and books can also be tax-efficient in the old regime.