CTC vs Take Home Salary
CTC (Cost to Company) includes your basic salary, HRA, allowances, PF contributions, and other benefits. Your take-home salary is what you actually receive after all deductions like PF, income tax, and professional tax.
Typical Salary Components
Basic Salary: ~40-50% of CTC | HRA: ~20-40% of Basic | PF: 12% of Basic (employee) | Professional Tax: Up to โน2,400/year
What is the difference between CTC and gross salary?
CTC includes employer PF contribution and gratuity. Gross salary is CTC minus employer PF and gratuity. Net/take-home salary is gross salary minus employee PF, income tax, and professional tax.
How to increase take-home salary?
Opt for tax-saving investments under 80C, claim HRA exemption, choose the right tax regime, and use food coupons or LTA benefits to reduce taxable income.