How is take home different from CTC?

How is take home different from CTC?

 

Ever asked why the salary you bring home is a ton lower than what you were told on your offer letter?

Your complete may qualify you for a few advantages as sustenance coupons or a taxi benefit separated from your compensation. The aggregate expense to the organization is the whole of the considerable number of advantages offered in addition to your pay.

The compensation that gets credited to your financial balance in your account is only your pay in the wake of deducting charges of tax.

 

Think about CTC and compensation one next to the other:

 

Components                                                                                         Amount


Basic Salary                                                                                         Rs. 3,00,000

Special Allowance                                                                                Rs. 1,00,000

HRA                                                                                                      Rs. 80,000

Medical Reimbursements                                                                     Rs. 15,000

Medical Insurance for you and your family                                           Rs. 5,000

PF (12% of basic)                                                                                 Rs. 36,000

Performance bonus

(range between 50,000 to 75,000 based on performance ratings)       Rs. 75,000


Total CTC                                                                                              Rs. 6,11,000


 

Taxable Salary

 

Components                                                                                  Amount


Basic Salary                                                                                   Rs. 3,00,000

Special Allowance                                                                          Rs. 1,00,000

HRA (less exemption on production of rent receipts)                     Rs. 80,000

Bonus received                                                                               Rs. 70,000

Total Salary                                                                                     Rs. 5,20,000

Less: 12% PF                                                                                  Rs. 36,000

Less: Tax Payable*                                                                          Rs. 12,875


Take Home Salary                                                                           Rs. 4,71,125


 

In broad sense your CTC will be including all this:

Salary taken each month

Retirement benefits such as PF and Gratuity

Non-monetary benefits such as an office cab service, medical insurance paid for by the company, or free meals at the office, a phone provided to you and bills reimbursed by your company.

 

Your take-home salary will include:

Salary taken each month

minus allowable deductions

minus Section 80 deductions

minus income taxes payable

 

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