Salary / CTC Restructuring Calculator
IT Act 1961: s.10(13A) · s.10(5) · s.80CCD(2) · IT Act 2025: Sch. II · FY 2026-27 (AY 2027-28)
💡 How CTC Restructuring Saves Tax
A smart salary structure replaces taxable special allowance with tax-exempt components — HRA, LTA, food allowance, NPS employer contribution — without reducing your take-home pay. The tool shows how much tax you save by restructuring, and which regime (old or new) wins after restructuring.
📋 Your CTC Details
Detailed Tax Computation
📌 Restructuring Components Explained
HRA (s.10(13A)): Exempt = least of (i) actual HRA received, (ii) rent paid − 10% of basic, (iii) 50%/40% of basic. Available only under old regime.
LTA (s.10(5)): Exempt when actually claimed for travel within India. Typically ₹20,000–₹40,000 p.a. based on Basic. Not available under new regime.
Food Allowance: ₹50 per meal × 2 meals × working days — CBDT exempt. Approximately ₹26,400 p.a. Not available under new regime.
NPS Employer 80CCD(2): Employer's NPS contribution up to 10% of Basic+DA is deductible even under the new regime — making it the only structural benefit available in both regimes.
Professional Tax: Deductible u/s 16(iii). Maximum ₹2,500 p.a. Varies by state.
LTA (s.10(5)): Exempt when actually claimed for travel within India. Typically ₹20,000–₹40,000 p.a. based on Basic. Not available under new regime.
Food Allowance: ₹50 per meal × 2 meals × working days — CBDT exempt. Approximately ₹26,400 p.a. Not available under new regime.
NPS Employer 80CCD(2): Employer's NPS contribution up to 10% of Basic+DA is deductible even under the new regime — making it the only structural benefit available in both regimes.
Professional Tax: Deductible u/s 16(iii). Maximum ₹2,500 p.a. Varies by state.
Disclaimer: This tool provides indicative restructuring suggestions for educational purposes only. Actual tax liability depends on individual circumstances including actual rent paid, actual LTA claims, state professional tax rates, employer HR policy, and other deductions. Always consult your employer's HR/payroll team and a Chartered Accountant before restructuring your CTC. TheToolsWala.com accepts no liability for decisions made based on tool output.