Calculate take home salary India is what is an employee gets into his hands after all the deductions made from the actual gross salary.
To calculate take home pay all you need to know is what all attributes are considered by your organization. CTC, Basic, Gross, Net salary, Allowances, Reimbursements, PF, Tax deductions, Insurance etc are the usual terms that fall in salary discussions that are more confusing. Here are all these salary components discussed along with the formula needed to calculate shared.
CTC is the total cost that a company puts on an employee in other words it’s the amount that a company retains with it if the employee is no more working with the company.
CTC = Gross Salary + PF + Gratuity
Base salary is what is decided based on the employee designation and industry and is a fixed part of the package.
Gross Salary is what an individual gets before taxes and deductions. It also includes other components like bonus, holiday pay, overtime pay, and any other differentiating factors as such.
Gross Salary = Basic Salary + HRA + Other Allowances
Net or Take Home Salary:
Net or take home salary is what an employee gets after all deductions including TDS as per the respective company policy. So in technical wording to calculate your take home salary, subtract Income tax (IT), Provident fund (PF) and Professional Tax from the Gross Salary as below.
Net Salary = Basic Salary + HRA + Allowances - Income Tax - Employer's Provident Fund - Professional Tax.
So with all the main salary components mentioned above make yourself clear about your exact salary offered before accepting the opportunity so as to avoid any further consequences.
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