in-Hand salary is an acronym used in India for 'Take home' pay. This is the amount an employee can expect to receive after all deductions. The deductions could vary from each company and is based on individual salary package.The primary deductions that each employee (or an individual) would see in their salary slip are:
The full form of CTC is Cost To Company. It is a term, which signifies the cost that a company would incur on you as an employee.
The salary and other perquisites (benefits) that your company pays you, are actually cost for them and hence the term. This term is quite prevalent in Indian software companies while making an offer of employment.
In India, salary is composed of various individual components. The primary one is known as 'Basic' allowance.
This calculator only requires you to enter your 'Basic' allowance (Monthly amount) to start. Once you enter the value, it automatically derives some of the other components like HRA (House Rent Allowance).
HRA is an allowance, normally in the range of 40-60% of Basic.
You have to enter the basic pay amount and click (if using computer mouse) or tap (if using touch based mobile) anywhere outside the 'Basic' text box for it to start calculation.
You will see the CTC amount, taxes for whole 12 months and sample salary slips on the right hand side of screen (if using computers with larger screens) and at bottom (after scrolling down in smaller mobile screens).
You can now enter more values if you have in your salary package and this salary calculator will keep re-calculating the new values as soon as you move out of the text box.
This is an online calculator and is a substitute for excel (xls) version available on internet. You do not need to download anything for using it.
It sums up gross income for full year (12 months or lesser, if you selected a different job start date) and then calculates income tax. It then divides the total income tax into available number of months.
You can do a salary comparison with this calculator in India. It is always better to select the 'job start date' as 1 April for current year even though you are through the mid or year. This will give you a better idea about the new job offer that you are looking at.