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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