It includes benefits, such as statutory bonuses,allowances and administrative expenditure other than the employee’s gross salary . The total CTC need not be the actual salary in hand at the end of the month. CTC breakup includes various components like: Fixed salary.
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In a nutshell, Net Salary = Basic Salary + Allowances – Income Tax/ TDS – Employer’s Provident Fund – Professional Tax . Add the allowances to the basic salary and you arrive at the gross salary. This amount is calculated before the application of taxes and other deductions.
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