About the Tax Optimized Salary Structure Calculator
What is the Tax Optimized Salary Structure Calculator?
The same CTC can attract very different tax depending on its structure. This tax-saving salary structure calculator compares the standard new-regime structure with options that add employer NPS contributions, and with the old regime using HRA, 80C and 80D.
It ranks the options by annual tax and shows the monthly in-hand for each.
How to use the Tax Optimized Salary Structure Calculator
- Annual CTC (₹) (sample: 18,00,000)
- Basic Pay (% of fixed CTC) (sample: 40)
- Rent Paid (₹ per month) (sample: 25,000)
- City (sample: Mumbai, Delhi, Kolkata or Chennai)
- Your 80C Investments besides PF (₹) (sample: 50,000)
- Health Insurance Premium – 80D (₹) (sample: 25,000)
- Employer Offers NPS in the Salary Structure? (sample: Yes)
- Press Find the Best Salary Structure (results also refresh as you type). The result card shows the Lowest-Tax Option, along with Income tax with it, Saving vs the standard new-regime structure, HRA exemption available (old regime) and Note.
Formula used
Tax saving = Tax (standard structure) − Tax (best structure)
- Employer NPS (80CCD(2)) = deductible up to 14% of basic in the new regime and 10% in the old
- Old regime = HRA exemption, 80C up to ₹1.5 lakh, 80D for health insurance
Tax follows FY 2025-26 rules: under the new regime, taxable income up to ₹12 lakh (₹12.75 lakh of salary) pays no tax.
Worked example
These are the sample values already filled in the calculator above, and the result it returns for them:
| Input | Sample value |
|---|---|
| Annual CTC (₹) | 18,00,000 |
| Basic Pay (% of fixed CTC) | 40 |
| Rent Paid (₹ per month) | 25,000 |
| City | Mumbai, Delhi, Kolkata or Chennai |
| Your 80C Investments besides PF (₹) | 50,000 |
| Health Insurance Premium – 80D (₹) | 25,000 |
| Employer Offers NPS in the Salary Structure? | Yes |
| Result | Value |
|---|---|
| Lowest-Tax Option | New regime + employer NPS (14% of basic) |
| Income tax with it | ₹1,09,694 |
| Saving vs the standard new-regime structure | ₹15,931 |
| HRA exemption available (old regime) | ₹2,28,000 |
| Note | Employer NPS moves part of pay into your retirement account – it lowers tax and monthly cash, but builds long-term savings |
Tips for using the Tax Optimized Salary Structure Calculator
- Employer NPS is one of the few deductions allowed in the new regime – ask HR if it is offered.
- Employer contributions to PF, NPS and superannuation above ₹7.5 lakh a year become taxable.