Salary / CTC Calculator

What is CTC and how is it different from take-home salary?

CTC (Cost to Company) is the total amount a company spends on an employee annually, including salary, employer PF, gratuity provisions, and benefits. Take-home salary (in-hand) is what you actually receive after deducting employee PF, professional tax, and TDS. A ₹12 lakh CTC typically translates to ₹85,000–92,000 monthly take-home.

What is included in a typical salary structure?

A standard Indian salary structure includes: Basic Salary (40–50% of CTC), HRA (40–50% of Basic for rent exemption), Special Allowance (remaining amount), Employee PF (12% of Basic, max ₹1,800/month), Employer PF (matched contribution, part of CTC), Professional Tax (up to ₹200/month in most states), and TDS (estimated income tax deducted at source).

How is HRA exemption calculated?

HRA exemption under Section 10(13A) is the minimum of: (1) Actual HRA received, (2) 50% of basic salary for metro cities (40% for non-metro), (3) Rent paid minus 10% of basic salary. If your basic is ₹40,000/month and you pay ₹15,000 rent in Mumbai: exemption = min(₹20,000, ₹20,000, ₹11,000) = ₹11,000/month.

What is the Employee Provident Fund (EPF)?

EPF requires both employee and employer to contribute 12% of the employee's basic salary. The employee contribution goes entirely to EPF. The employer's 12% is split: 8.33% goes to EPS (Employee Pension Scheme, capped at ₹1,250/month) and 3.67% to EPF. EPF earns 8.25% interest (FY 2023-24) — tax-free if withdrawn after 5 years.

Is professional tax applicable in all states?

No. Professional tax is levied by state governments and is not applicable in all states. It is applicable in Maharashtra (max ₹2,500/year), Karnataka (max ₹2,400/year), West Bengal (max ₹2,500/year), Tamil Nadu (max ₹2,400/year), and a few others. States like Delhi, Rajasthan, and Gujarat do not levy professional tax.