This tool helps you calculate your "Take Home Salary" from your CTC. You
just need to enter your CTC break up from your offer letter.
The tool gives you an estimate of your monthly in-hand salary. You can
select if you want to opt for new or old scheme
-
Basic Salary:
Fixed cash portion of your salary. It is fully taxable.
Other CTC elements are usually structured at a percentage of basic
salary.
-
House Rent Allowance (HRA):
HRA is allowance to cover employee's rental expenses for
accommodation. It is usually kept at 50% of Basic Salary
-
Provident Fund (PF) Contribution:
PF is a retirement saving avenue for all salaried employees.
Both the employer and employee contribute a % of the employee's
salary to the fund (usually 12%).
-
Leave Travel Allowance (LTA):
LTA allows tax benefit on expenses incurred during travel
within India on leave. You can claim air, railway tickets
etc. for yourself, spouse and children.
-
Meal Vouchers (Food Cards):
These are prepaid Sodexo or other food cards issued by employers. It
is tax free if you use them for food purchases upto allowance limit
.
-
Telephone/Internet Allowance:
This covers expenses related to telephone and internet usage for
official purposes. It it is usually a
tax free reimbursement for actual expenses incurred.
-
Car Running Allowance:
Employees who use their personal vehicles for work-related purposes
may receive a car running allowance to cover fuel, maintenance, and
other associated costs.
-
Special Allowance:
Residual component of the salary structure. It is fully taxable.
-
Any Other Allowance:
If you have any other allowances or perks provided by the employer.
This is assumed to be fully taxable.
-
Gratuity:
Gratuity is paid in lumpsum ONLY for employee completing
5 years of service.
However companies make an annual
provision for this amount.