Why Your ₹18 LPA Offer Translates to ₹1.1L Monthly Take-Home
Many Indian tech professionals are surprised to find their monthly salary significantly lower than their CTC divided by 12, a gap explained by how Cost to Company is structured. CTC includes employer PF contributions, gratuity accruals, and variable pay that never appear as monthly cash in hand. Further deductions such as the employee's own EPF share, professional tax, and income tax TDS reduce the gross amount further before it reaches a bank account. For FY 2025-26, the new tax regime is the default and often favours salaried employees who do not claim large exemptions, though individuals with high rent, home loans, or maxed 80C investments may still benefit from the old regime. A developer who experienced this pay gap firsthand built a browser-based take-home salary calculator for India that compares both tax regimes side by side without requiring a sign-up.
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