Take-Home Salary Calculator

CTC typically includes:

• Basic salary (typically 40-50% of CTC)
• HRA (House Rent Allowance)
• Special allowances and benefits
• Employer's PF contribution
• Performance bonuses and incentives

PF calculation details:

• Employee contributes 12% of basic salary
• Employer matches 12% contribution
• Calculated on basic + dearness allowance
• Tax-free investment under Section 80C
• Mandatory if basic salary > ₹15,000

Professional tax details:

• State-specific employment tax
• Varies based on salary brackets
• Maximum ₹2,500 annually in most states
• Deducted monthly from salary
• Tax deductible under Section 16

Major salary components:

• Basic Salary (fixed component)
• HRA (House Rent Allowance)
• Special Allowance
• Transport Allowance
• Medical Allowance

HRA exemption is least of:

• Actual HRA received
• 50% of basic salary (Metro cities)
• Actual rent paid minus 10% of basic salary
• 40% of basic salary (Non-metro cities)
• Requires rent receipts for proof

Common voluntary deductions:

• Group Health Insurance
• Additional NPS contribution
• Loan EMI deductions
• Meal card deductions
• Voluntary PF contribution

TDS calculation process:

• Based on projected annual income
• Considers declared investments
• Spread across 12 months
• Adjusted quarterly for accuracy
• Form 16 provides annual TDS details

Form 16 details:

• Annual salary and tax statement
• Shows total income and deductions
• Required for tax filing
• Issued by employer by May 31st
• Contains Part A and Part B

LTA benefits and rules:

• Tax-free travel expense reimbursement
• Available for domestic travel only
• Covers shortest route fare
• Available twice in 4 years
• Requires travel proof documents

Optimization strategies:

• Plan tax-saving investments
• Utilize HRA benefits properly
• Claim LTA when eligible
• Choose appropriate tax regime
• Review salary structure regularly