CTC vs gross vs in-hand
CTC (cost to company) is everything the employer spends on you, including employer PF and gratuity. Gross salary is CTC minus those employer costs. In-hand salary is what reaches your bank after employee PF, professional tax and TDS.
Ways to raise take-home pay
- Ask for employer NPS contribution (deductible in both regimes)
- Compare regimes with our income tax calculator
- Claim HRA if you are in the old regime – HRA calculator
Frequently Asked Questions
Why is my in-hand salary much lower than CTC?
CTC includes employer PF, gratuity and sometimes insurance and bonus, none of which come in your monthly pay. Employee PF, professional tax and TDS are also deducted.
Is gratuity part of CTC?
Many employers include it at 4.81% of basic. It is paid only after five years of service.
Is PF mandatory on full basic?
PF is mandatory on basic up to ₹15,000 a month; contributing on higher basic is optional if the employer allows it.
Is the bonus taxed?
Yes, the bonus is fully taxable in the year it is paid.
This calculator gives an estimate based on the rules shown above. Rates and limits change through budgets and notifications – confirm with a professional before you file or pay.