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.
How do you calculate in hand salary?
In-Hand Salary = Monthly Gross Income – Income Tax – Employee PF – Other Deductions if any.
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
- Basic Salary = 50% * 9 lakh = INR 4.5 Lakh.
- HRA = 30% * 4.5 lakh = INR 1.35 Lakh.
- Employer’s contribution to your PF(#) = 12% * 4.5 lakh = INR 0.54 Lakh.
- Food Coupons (Like Sodexo, etc.) =
What is included in Inhand salary?
It refers to the in-hand figure that is calculated after deducting Income Tax at source (TDS) and other deductions as per the relevant company policy. Public Provident Fund and Employee Provident Fund are a stipulated percentage of the employee’s salary, typically no less than 12% of the basic salary.
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.
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 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.
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 |
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.
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 do you calculate an employee’s salary?
How to Calculate your Take-Home Salary?
- In order to calculate your Take-Home Salary or Net Salary, follow these steps:
- Gross Salary= Basic Salary + HRA + Other Allowances.
- Alternatively,
- Gross Salary= CTC – (EPF + Gratuity)
- Taxable Income = Income (Gross Salary + other income) – Deductions.
Is employee PF part of CTC?
Employer PF is part of CTC not shown on Salary Slip. It is NOT counted as part of your earnings and hence not taxed.
What is difference between CTC and in hand salary?
In-hand Salary = Gross Salary – Income Tax -Professional Tax
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.
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 50 lakhs a good salary in India?
50 LPA is a decent pay in India and can lead to a great lifestyle if you are interested in spending full money. However such paying jobs are having a constant threat of replacement with a low cost employee.