Understanding the Difference Between CTC and In-Hand Salary
Cost to Company (CTC) is the complete expense an employer incurs to employ you over a year. Your actual In-Hand (Net Take-Home) Salary is significantly lower because CTC includes employer-side statutory contributions and income taxes:
Gross Monthly Pay = (Annual CTC − Annual Bonus − Employer PF) / 12
Net In-Hand Salary = Gross Monthly Pay − (Employee PF + Professional Tax + Monthly TDS)
Net In-Hand Salary = Gross Monthly Pay − (Employee PF + Professional Tax + Monthly TDS)
Standard Deduction under New Tax Regime
Under the revised New Tax Regime applicable for FY 2025–26, salaried employees receive a flat ₹75,000 Standard Deduction, reducing overall tax liabilities for taxable incomes up to ₹12 Lakh.