Salary Calculator

Understanding CTC vs Take-Home

CTC (Cost to Company) is the total amount a company spends on you, including salary, benefits, and contributions. Take-home salary is what you actually receive in your bank account after all deductions. The difference can be 20-30% of CTC.

Salary Components

• Basic Salary: 40-50% of CTC, forms base for PF and gratuity calculations

• HRA: House Rent Allowance, usually 40-50% of basic, partially tax-exempt

• Special Allowance: Remaining amount to make up CTC, fully taxable

• Bonus: Performance-based, annual or quarterly payments

Deductions from Salary

Employee PF (12% of basic): Your contribution to Provident Fund, tax-free under 80C

Employer PF (12% of basic): Company's contribution, part of CTC but not in-hand

Professional Tax: State tax, ₹200/month (₹2,400/year) in most states

Income Tax: Based on your tax slab and regime chosen

CTC Breakdown Example

₹12 lakh CTC typically breaks down as:

• Basic: ₹4.8 lakh (40%) | HRA: ₹2.4 lakh (20%) | Special Allowance: ₹3.6 lakh (30%)

• Employer PF: ₹57,600 (4.8%) | Gratuity: ₹23,088 (1.92%)

• Gross Salary: ₹10.8 lakh | Deductions: ₹60,000 | Take-home: ₹10.2 lakh

Pro Tips

• Higher Basic: Negotiate higher basic % for better PF accumulation

• HRA Exemption: Claim HRA exemption if paying rent, submit rent receipts

• Tax Planning: Use 80C (₹1.5L), 80D (₹25K-50K) deductions to save tax

• New vs Old Regime: Calculate which tax regime gives better take-home