Question 1

How is In-Hand Salary calculated from CTC?

Accepted Answer

CTC (Cost to Company) includes your direct salary plus company contributions like Employer PF. To calculate your in-hand salary, we deduct Employer PF to find your Gross Salary, and then deduct Employee PF and Professional Tax to arrive at your Net Take-Home Salary.

Question 2

Why is my Basic Salary exactly 50% of my CTC?

Accepted Answer

In India, most standard corporate payroll structures set Basic Salary at 50% of the fixed CTC to optimize tax benefits and comply with labor laws regarding Provident Fund contributions.

Question 3

Does this tool calculate Income Tax (TDS)?

Accepted Answer

This is a base salary breakdown. Income Tax (TDS) depends on your chosen tax regime (Old vs New) and your personal investments under section 80C. You can use our dedicated Income Tax Calculator for exact TDS figures.

In-Hand Salary Calculator India

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