How CTC becomes in-hand salary
Your offer letter quotes Cost to Company — but three chunks of CTC never reach your bank: employer PF contribution, gratuity (4.81% of basic, payable only after 5 years) and group insurance premiums. What remains is gross salary; from that, employee PF, professional tax and TDS are deducted before the credit hits your account.
New Regime FY 2026-27 at a glance
- Standard deduction: ₹75,000 (Section 16(ia), 115BAC)
- Slabs: nil to ₹4L · 5% ₹4–8L · 10% ₹8–12L · 15% ₹12–16L · 20% ₹16–20L · 25% ₹20–24L · 30% above ₹24L
- Section 87A rebate: zero tax if taxable income ≤ ₹12 lakh
- + 4% Health & Education Cess on tax
Estimates based on Finance Act provisions and common payroll structures. Old-regime comparison, HRA optimization and 80C planning coming soon. Not tax advice — consult a CA for filings.