How is hand salary calculated from CTC in India?

It is the take-home pay and typically means the amount shown after all deductions are made. In-Hand Salary = Monthly Gross Income – Income Tax – Employee PF – Other Deductions if any. These deductions will vary depending on the CTC.

How is Inhand salary calculated from CTC?

Let’s take an example for a better understanding of salary structure to calculate the in hand salary from CTC

  1. Basic Salary = 50% * 9 lakh = INR 4.5 Lakh.
  2. HRA = 30% * 4.5 lakh = INR 1.35 Lakh.
  3. Employer’s contribution to your PF(#) = 12% * 4.5 lakh = INR 0.54 Lakh.
  4. Food Coupons (Like Sodexo, etc.) =

How is hand salary calculated in India?

Total Deductions = Professional tax + EPF (Employee Contribution) + EPF (Employer Contribution) + Employee Insurance. Total Deductions = Rs 2,400 + Rs 21,600 + Rs 21,600 + Rs 3,000 = Rs 48,600. Take-Home Salary = Rs 7,50,000 – Rs 48,600 = Rs 7,01,400.

What percentage of CTC is in hand salary?

It is a fixed component of the salary and usually comprises 40% to 50% of the total CTC.

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Is CTC the Inhand salary?

The employees’ CTC is the gross amount, while the amount of salary one gets to take home is the net salary. In simpler words, gross salary is the monthly or yearly salary before any deductions are made from it.

What is 3.5 CTC in hand salary?

So if your annual CTC in India is Rs 5 lakh, you can expect to get an annual take-home of 3.5 lakh or Rs 29000 per month.

What will be in hand salary if CTC is 12 LPA?

General Comparison Chart For Approximate Understanding by Ck

Band CTC (Yearly) In Hand Salary
A 20 lakh 1,15,000 per month
B 15 lakh 95,000 per month
C 12 lakh 82,000 per month
C 10 lakh 63,000 per month

How is hand salary calculated in TCS?

Take Home Salary = Gross Salary – Income Tax – Employee’s PF Contribution(PF) – Prof. Tax. Gross Salary = Cost to Company (CTC) – Employer’s PF Contribution (EPF) – Gratuity. Gratuity = (Basic salary + Dearness allowance) × 15/26 × No.

What is 6 LPA salary?

The highest salary for a 6lpa in India is ₹23,695 per month. The lowest salary for a 6lpa in India is ₹23,695 per month.

How much is basic salary of CTC?

Usually, the basic salary is 40% to 60% of CTC (Cost to Company). The statutory components: bonus, PF, gratuity and other benefits are determined based on the basic salary. An increase or decrease in the basic salary can affect the employee’s CTC.

Why in-hand salary is less than CTC?

The difference between CTC and in-hand salary are the various deductions that occur at the time of payout. The take-home salary can be increased by proper tax planning and avoiding any income tax deductions. … This will result in reducing the total deductions from the gross salary, thereby increasing the in-hand salary.

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What do you mean by CTC salary 18000?

CTC means Cost To Company. The total cost that a company would incur, on an employee, in a year. Per month salary and other benefits that the company pays an employee, are actually cost to the company.

How is CTC calculated?

CTC is calculated by adding salary and additional benefits that an employee receives such as EPF, gratuity, house allowance, food coupons, medical insurance, travel expense and so on. CTC in colloquial terms is the cost an employer bears to hire and sustain its employees. Formula: CTC = Gross Salary + Benefits.

How much salary will I get in-hand each month with an annual CTC of 4.00 lakhs per annum?

4 Lakhs per annum, which makes it somewhere round 40,000 per month. However, when you receive the salary at the end of the month, you receive only Rs. 34,000 in your back account.

Is CTC monthly or yearly?

CTC is inclusive of monthly components such as basic pay, various allowances, reimbursements, etc. and annual components such as gratuity, annual variable pay, annual bonus, etc.

Is basic salary in-hand salary?

Basic salary is a fixed part of the compensation structure of an employee and forms the core of the salary of an employee. It does not vary, unlike the other aspects of Cost to Company. The entire amount of the basic salary shall be part of the in-hand salary.