When you’re offered a ₹8 lakh per annum CTC, it doesn’t mean you’ll receive that amount in cash. Your actual take-home depends on how your salary is structured—especially basic pay, allowances, and deductions like EPF and tax. Let’s walk through the breakdown.
Your CTC (Cost to Company) includes various parts:
Not all of your gross pay hits your account. Here are the standard deductions:
In the Union Budget 2025-26, the government introduced zero tax on income up to ₹12 lakh, applicable only for those choosing the new tax regime in FY 2025-26. Despite the tax exemption, individuals must still file an income tax return (ITR), as the benefit is provided through a tax rebate under Section 87A of the Income Tax Act, 1961.
Let’s break this down:
Total Gross Monthly Salary is a sum of Basic, HRA, and other Allowances.
Deductions:
Final Monthly In-Hand Salary would come up to ₹62,467, i.e., Gross Monthly Salary minus total deductions.
For precise calculations, you can use online salary calculators. These tools allow you to input your CTC and provide detailed breakdowns of your salary components and deductions based on your individual situation.
Also Read: ITR Filing 2025: What 80C, 80D, and 24B Mean for Your ITR.
Your actual take-home pay will depend on the structure of your compensation package, applicable deductions, and how you choose to plan your taxes. Using online salary calculators can give you a more accurate estimate tailored to your financial situation.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their research and assessments to form an independent opinion about investment decisions.
Investments in the securities market are subject to market risks, read all the related documents carefully before investing.
Published on: May 7, 2025, 3:03 PM IST
Team Angel One
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