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What would be my in-hand salary for this ctc structure?

Ankur Kanoria (Student) (25 Points)

26 March 2013

Hi guys,

I am from IIM Indore and have received a job offer (in Mumbai, India) whose CTC structure is given in the attached image. Can someone guide me as to what shall be my in-hand or net salary? Will I get paid the various allowances like telephone allowance/attire allowance, etc.? I shall be helpful if you guys can guide me as I am a fresher with no previous experience in HR/tax matters...

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4 Replies

Varun (CA Final) (210 Points)
Replied 26 March 2013

Hello Ankur, as far as i know, your in-hand salary will include all the allowances except for: 1) Provident Fund Contribution of 780/- which is deducted from salary;

2) Group insurance premium of 86/- per month as mentioned which will also be deducted

3) Income tax (tds) will be deducted, after which, the remaining amt. will be your in-hand salary.

Allowances like House Rent are partly taxable. Also, the medical reimbursement is not paid with salary but reimbursed only after you incur actual medical expenses, but i'm not too sure about that. For the meal coupons, they might give you the coupons itself, worth 2500, or the amt. could be paid to you, which you should ask HR.

I also found this page which might be helpful, read it - https://www.mycitysurat.com/a_tips_ctc_net_salary.php

1 Like

Mihir (Wealth Manager) (5293 Points)
Replied 26 March 2013

Basic - Rs. 24,063 (taxable)

HRA - Rs. 12,031 (taxable if not living on a rented house and not paying rent)

City comp allowance - Rs. 23,326 (taxable)

Medical reimbursement - Rs. 1,250 (exempt provided you furnish medical bills)

Telephone allowance - Rs. 2,000 (taxable) (exempt if use for office)

Transport allowance - Rs. 800 (exempt)

Attire allowance - Rs. 1,000 (taxable) (exempt on actual exp)

Technical books - Rs. 1,000 (taxable) (exempt on actual purchase)

Meal coupons - Rs. 2,500 (Rs. 1,250 exempt)

1 Like

piyush.a.k (-) (252 Points)
Replied 27 March 2013

Hello Ankur.

Generally a company gives such structure to allow employees to claim tax exemptions from income from salary.

As per your offer letter a monthly deduction of only Rs.780 (PF Contribution) and Rs. 86 (Group mediclaim) will be deducted.

As far as food coupons are concern if the company provides you coupons you can always use it if required or can also encash the same, but the same will be taxable if you plan to encash it.

Congrads and all the best for your new venture.

2 Like

Ankur Kanoria (Student) (25 Points)
Replied 27 March 2013

Thanks for all the helpful replies. I have a fairly good idea of what to expect now. I guess I need to consult the HR after joining regarding clarity on the two items: medical reimbursement and meal coupons.