In-Hand = Gross Salary − PF (employee 12% of basic) − TDS − Professional Tax. Example: ₹12L CTC → ₹1L monthly. Basic=₹40K, PF=₹4,800, PT=₹200, TDS≈₹1,500 (at 20% slab). In-hand ≈ ₹93,500/month. Actual amount varies based on your specific salary structure and allowances.
What is included in CTC vs take-home?▼
CTC includes: Basic, HRA, Special allowance, PF (employer + employee), Gratuity provision, medical allowance, LTA, etc. Take-home only includes: Basic + HRA + Special Allowance − PF employee share − TDS − Professional Tax. Employer's PF contribution (12%) is in CTC but NOT in take-home.
How to increase in-hand salary?▼
1. Restructure salary: Reduce basic, increase special allowance (less PF deduction), 2. Claim HRA exemption (if renting), 3. Submit Form 12BB to employer for all deductions, 4. Choose tax regime (new vs old) that minimizes TDS, 5. Use flexible benefits: meal cards, fuel reimbursement (tax-free).