Finance Salary & Tax

What is the difference between CTC and in-hand salary?

QUICK ANSWER

Cost to Company (CTC) is the total annual expenditure an employer incurs on an employee, whereas in-hand salary is the actual amount credited to the employee's bank account after mandatory deductions.

Detailed Explanation

CTC includes direct benefits (Basic Salary, HRA, Special Allowance), indirect benefits (Employer PF contribution, Gratuity, Health Insurance), and non-monetary perks. In-hand (take-home) salary subtracts Employee PF, Professional Tax, and Income Tax (TDS) from the gross salary.

Data Attribution & Rights

Source: Income Tax Department of India (Open Data License)