Question 1

How is in-hand salary calculated from CTC?

Accepted Answer

In-hand salary = CTC minus employer EPF, gratuity, employee EPF deduction, income tax (TDS) and professional tax. Typically for a ₹8L CTC salaried employee, in-hand is around 75-85% of CTC depending on deductions and tax regime.

Question 2

What is the EPF deduction on salary?

Accepted Answer

EPF deduction is 12% of basic salary. Statutory minimum is 12% of ₹15,000 = ₹1,800/month from employee and ₹1,800/month from employer. Some companies contribute 12% on the full basic salary without the ₹15,000 cap.

Question 3

Which tax regime gives higher in-hand salary?

Accepted Answer

For most salaried employees with income up to ₹15 lakh and limited deductions, the new tax regime gives higher in-hand salary due to zero tax up to ₹12.75 lakh. Use this calculator to compare both regimes with your exact salary and deductions.

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