What reduces your in-hand salary in India (deductions, in order of impact)

Take-home is gross minus what the law and your employer take before the salary hits your account, plus any recoveries (loans, damage, adjustments). Below is the usual order of impact for salaried employees in India — your payslip order may differ.

1) Income tax (TDS)

Often the largest gap between “annual taxable salary” and monthly cash. Regime choice (old vs new), deductions, and how your employer smooths TDS across months all matter. Model it: old vs new regime, salary / tax breakdown.

2) Employee PF (EPF)

Typically a percentage of PF wage (commonly tied to Basic + DA definitions), subject to policy and ceilings. It is not “lost” — it is deferred — but it is not spendable this month. Estimate: EPF calculator.

3) Professional tax

State-specific slabs; small per month for many employees but it belongs in reconciliation. It shows up on payslip, not in CTC headlines.

4) Other deductions and recoveries

Health insurance premiums, meal card recoveries, transport, advance repayments, and one-off adjustments can change a single month dramatically even when annual tax is stable.

5) Timing effects (not a “deduction,” but it changes net pay)

Joining mid-month, bonus accruals, arrears, and revised declarations can make one month’s net look wrong even when annual tax is fine. For a deeper read on interactions between these pieces, see what affects in-hand salary (full guide).

What to do with this list

1. Build one baseline in CTC → in-hand with stated assumptions.
2. Reconcile against a real payslip — adjust PF wage and regime first.
3. Only then compare offers or argue about “good salary” — see how to judge if a salary is good.