Free or subsidized transport is still taxable either as FBT (Fringe Benefit Tax) paid by the employer or as your income tax if the employer passes it on to you. 6. Income tax savings Sometimes companies offer you some benefits which are tax-free for you but are taxable to them.Australia PR Points Calculator ANZSCO Code List PR Processing Time ACS Assessment IELTS, PTE Points CoWorker Reference Letter Generate HAP ID Australia Q A More.Canada Canada PR Process Chance of PR 450 Points Express Entry Profile WES Evaluation Process Visitor Visa VFS Messages Meaning Transcript to WES Canada 10 Things to Do After Landing Canada Q A More India India Mobile Import Duty Salary Calculator HRA Tax India India Q A More.Help Prime Private Grp Free Q A (Forum) Free Social Groups Fact Checks Money.
Salary Slip Format India Free Or SubsidizedSalary Slip Format India Free For YouSalary Slip Format India Full Form IsWhat is CTC Difference between CTC Package Net Salary CTC full form is Cost To Company. ![]() CTC package is a term often used by private-sector Indian and South Indian companies while making an offer of employment to show the total remuneration. What is CTC package The CTC package shows detailed break-up showing basic salary, HRA (House rent allowance), and other such allowances. Please note that CTC contains all monetary and non-monetary amounts spent on an employee. What is CTC in resume CTC in a resume is generally asked to be filled in, to help the new employer know your current total gross salary (including any cash or non-cash benefits). What is Net Salary Take home pay in-hand salary Take-home pay (known as in-hand salary in India) is the net salary after deducting income tax (TDS tax deducted at source in India) and other deductions, from the gross monthly pay. Use Take Home Salary Calculator India to make a decision of accepting the new job offer or not by looking at your monthly in-hand earnings and deductions. Do not just look at the figure of CTC as there could many components which may be misleading and may NOT form part of your monthly take home. This article will discuss: CTC Contents Cost to Company Direct benefits CTC Indirect Benefits Employee Retirement Saving Contributions CTC Contents A Sample Cost to Company package of 14 lakhs in Karnataka, India with a take home pay of 93 thousand per month: Open App in new Window CTC Direct benefits Indirect benefits Saving Contributions in-Hand Salary Direct Benefits Income tax Employee PF Other deductions, if any Direct Benefits Indirect Benefits Saving Contributions Basic Salary Interest free loans, if any Superannuation Dearness Allowance (DA) Food Coupons Subsidized meals Employer Provident fund Conveyance allowance Company Leased Accommodation Gratuity House Rent Allowance (HRA) MedicalLife Insurance premiums paid by employer Medical allowance Income tax savings Leave Travel Allowance (LTA) Office Space Rent Vehicle Allowance Telephone Mobile Phone Allowance Incentives or bonuses Special City Compensatory allowance etc. Monetary value added to CTC Cost to Company Direct benefits Paid to employee monthly and form part of your take-home (in-hand salary) after deducting income tax plus any additional state taxes. Your company takes care of them but add their monetary value to your CTC. Off-course it is an expense for the company and hence, could be added to CTC. Interest free loans, if any in CTC Banking companies like ICICI allow their employees to get carhome loans at highly subsidized rates and then add the amount equal to the difference between the market and subsidized interest rate to employees CTC. The interest that you did not pay (actually saved using a subsidized rate) is a benefit for you If you dont take the loan, you wont get this benefit, but it is anyway added to your CTC. NOTE: The differential amount of benefit i.e. It depends on your company policy if they bear the tax or pass it on to you. Food Coupons Subsidized meals Many MNC employers offer free lunch and evening snacks at the workplace. On the other hand, the meal vouchers (or food coupons) help you save income tax too. NOTE: Normally, you may not get this amount in-hand (as cash) even if you opt-out of eating in the employers cafeteria. Company Leased Accommodation (CLA) Your employer might provide you with company paid accommodation or pay rent to the landlord directly, saving you from the tension of finding a home and negotiating on rent deals. The monetary value of CLA, thats taxable, is added to your CTC, which is normally the rent and furniture cost. Medical, Life Insurance premiums paid by company Group medical and life insurance policies by your employer give you much better and comprehensive cover over the individual ones. The cost is added in CTC and you can claim it for income tax rebate while filing ITR. You will never be asked to pay a premium but in reality, you would have paid it as part of the group plan bought by your employer. ![]() Free or subsidized transport is still taxable either as FBT (Fringe Benefit Tax) paid by the employer or as your income tax if the employer passes it on to you. Income tax savings Sometimes companies offer you some benefits which are tax-free for you but are taxable to them.
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