Positive: Excellent take-home
You take home 95% of your CTC, an excellent ratio.
•Your salary structure is well-optimized, leaving more surplus available to invest
•80C (₹1.5L) and 80D (₹25-50K) are typically the first deductions exhausted before others
Cost to Company (CTC) is the total expenditure a company incurs on an employee per year. It includes your basic salary, HRA, PF (both employer and employee), gratuity, bonuses, and other benefits. Your actual take-home (in-hand) salary is always lower than CTC.
Basic Salary — typically 40-50% of CTC. It forms the base for PF, HRA, and gratuity calculations. A higher basic means more PF but also more taxable income.
PF (Provident Fund) — 12% of basic is deducted from your salary, and employer matches another 12%. This is retirement savings, not take-home.
Professional Tax — a state-level tax capped at ₹2,400/year (₹200/month). Applicable in most states.
Ask HR to restructure salary with higher HRA; it reduces taxable income in Old Regime.
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