Understanding My CTC: How Much Will I Actually Take Home After TDS?

If my CTC is 480,000, what would be the breakup of this CTC and the TDS amount? Also, what should be the in-hand salary? I am working with an infrastructure company. Kindly help me with this.

Regards

As per your question, I've designed the CTC breakup, tax liability, and the in-hand amount of the given CTC. This is a general view of the salary and may vary from organization to organization depending on the perks, facilities, and basic/DA provided.

Please check, I hope it helped.

Regards

Thank you for the breakup. From my understanding, there is an error in the calculation; please correct me if I am wrong.

The PF amount of Rs. 2592/- shown as a deduction in line 16 is a monthly deduction and not an annual deduction as shown in the breakup. This may be a typographical error. Consequently, there would be a variation in the CTC and monthly breakup as well. In the monthly breakup, the PF deduction would be Rs. 2592/- and not Rs. 216/- as shown in the calculation.

Thanks,
Ramana Murty G. V.

Please find the corrected calculation for PF as discussed above. Basic has undergone a change because your CTC was quoted as 4,80,000. Hope it helped.

Regards.

Thank you for the breakup, Ankita. However, there are a few things I would like to know:

1. My company only deducts TDS, not PF.
2. The company provides a phone, so there is no phone bill.
3. There are no medical bills payable.

Please correct me if I am wrong, but I heard that TDS deduction is approximately 10%. I am unsure if this applies to employees, vendors, or on a contract basis. Could you kindly provide some clarification on this? Thank you.

In case of no phone bill allowance, you can add that amount to other allowances.

Medical Allowance

Every individual can avail a tax-free medical reimbursement of up to 15,000 per annum on a pro-rata basis. The same is to be paid in the salary. So, if you get medical bills from your employee, you do not deduct tax on that 1,250 per month; otherwise, it attracts tax. No additional cost is to be given; it's just differentiated for tax benefit purposes for people who get medicines of about 1,000 per month for their immediate dependents.

TDS - (Tax Deduction @ Source)

The Tax/TDS to be paid depends on your CTC and salary bracket. Here are the rates:

- Up to 2,00,000 => Tax exemption
- 2 to 5 lacs => 10% + 0.33% education cess
- 5 to 8 lacs => 20% + 0.33% education cess
- 8 lacs above => 30% + 0.33% education cess

For example, if your CTC is 10 lacs, you would be taxed as below:

- For the 1st 2 lacs => since it's exempted from tax => 0
- 2 to 5 lacs => for this 3 lacs tax @ 10.33% => 30,990
- 5 to 8 lacs => for this 3 lacs tax @ 20.33% => 60,990
- Above 8 lacs => for the last 2 lacs tax @ 30.33% => 60,660

Total Tax Liability => 1,52,640

TDS (Tax/12) => 12,720