How Do I Calculate My Monthly Take-Home Salary and Optimize Taxes with My New Job Offer?

I have an offer from an employer with Rs. 11,00,000 as my annual CTC, out of which Rs. 88,000 is variable pay paid on a quarterly basis. So, on the Fixed CTC i.e. Rs. 10,12,000, below is the breakup of the salary:

- Basic: Rs. 42,167
- HRA: Rs. 16,867
- Conveyance Allowance: Rs. 800
- PF Employer Contribution: Rs. 5,060
- Management Allowance: Rs. 19,440

Investment Details

Below are my investment details:

- House loan principal payment p.a: Rs. 10,755
- Interest on House loan: Rs. 3,25,000
- LIC Premium: Rs. 5,000
- Medical Insurance (Aviva Lifeshield term insurance) - (self): Rs. 35,600

I would like to request the experts to let me know the tax applicable and my monthly take-home salary. Additionally, please inform me if there are any opportunities for further investments that can help increase my take-home salary.

Regards

The approximate TDS will be Rs. 7,541/- per month. Please use the Income Tax Calculator for precise calculations.

Would appreciate it if you could kindly provide us with the details of how the take-home salary was calculated. Thank you.

I will give you the exact take-home salary as well as your monthly TDS. In your fixed CTC, some parts are missing. Please provide the exact salary breakup. In your breakup, 9,00,000 Rupees do not match with your fixed CTC.

Your take-home pay per month depends significantly on the day you start your job in a given financial year concerning the overall CTC. This is because the income tax is calculated for the whole year and then deducted every month in equal proportion by the company.

If you are looking to get an overall idea about the CTC and its take-home, you should consider evaluating it for the full 12 months, i.e., from 1 April to 31 March. Here is the complete calculation: [Calculate In Hand Or Take Home Salary Calculator For India: AM22 Applications](http://goo.gl/fh0gfv). According to this calculation, your monthly take-home should be approximately 68,203.

You can change the date and then recalculate the take-home salary in the calculator itself.

I assume that you are not going to claim the HRA tax exemption as you would claim the home loan tax benefits.

Based on my analysis, you can save tax by investing more in tax-saving investments like PPF, mutual funds, etc.:
- You can invest Rs. 23,525 more to take full advantage of tax-free investment to lower your taxes.
- You can reduce your yearly tax by Rs. 4,846 if you can invest Rs. 23,525 more in tax-saving investments.
- This will increase your monthly in-hand salary by Rs. 440.

Let me know if you need more information.

Thanks a lot, Mr. Anil, that was pretty detailed. With the link you provided here, I am able to find out the exact take-home salary by mentioning the joining date. Appreciate your time.