taxes
March 10, 20266 min read
De-mystifying Your Salary Slip: CTC vs. Net Take-Home
By Surya Prakash
Financial Analyst & Editor
Understanding CTC vs. In-Hand Pay
Cost to Company (CTC) includes all expenditures an employer incurs on your employment. In-hand pay is the net cash deposited in your bank account, which is lower due to tax and retirement deductions.
Key Deductions Explained
Statutory deductions include Employee EPF (12% of basic salary), Professional Tax (up to ₹250/month), and Income Tax TDS, which are deducted from your gross salary monthly.
Allowances and Tax Exemptions
Your salary includes allowances like House Rent Allowance (HRA) and Leave Travel Allowance (LTA), which can be claimed as tax exemptions under the Old Regime to increase take-home pay.
#salary slip#ctc#take home#epf deduction#hra