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.
Read moreWhat is breakup in CTC?
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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