CTC Full Form:- CTC (Cost to Company) is the total salary package of an employee. It refers to the total amount spent by an employer to hire a new employee. Apart from basic salary, CTC generally includes several components like HRA, health insurance, traveling allowance, provident fund, etc. In other words, CTC is the expense that the company incurs in recruiting an employee and retaining their services. Therefore, CTC is a variable salary as it considers various elements including direct and indirect benefits.
CTC stands for Cost to Company. This is the annual salary package of an employee. It shows the total expenditure incurred by a company/organization on an employee in a year. Nowadays most companies give their salary in the form of CTC. CTC is not the actual salary of the employee. It also includes the facilities provided to the employee during the period of service.
एक कर्मचारी का कुल वेतन पैकेज है। यह एक नियोक्ता द्वारा एक नए कर्मचारी को काम पर रखने के लिए खर्च की गई कुल राशि को संदर्भित करता है। मूल वेतन के अलावा, सीटीसी में आम तौर पर एचआरए, स्वास्थ्य बीमा, यात्रा भत्ता, भविष्य निधि आदि जैसे कई घटक शामिल होते हैं। दूसरे शब्दों में, सीटीसी वह खर्च है जो कंपनी एक कर्मचारी की भर्ती और उनकी सेवाओं को बनाए रखने में खर्च करती है। इसलिए, सीटीसी एक परिवर्तनीय वेतन है क्योंकि यह प्रत्यक्ष और अप्रत्यक्ष लाभ सहित विभिन्न तत्वों पर विचार करता है।
CTC का मतलब कॉस्ट टू कंपनी है। यह एक कर्मचारी का वार्षिक वेतन पैकेज है। यह एक कंपनी/संगठन द्वारा एक कर्मचारी पर एक वर्ष में किए गए कुल खर्च को दर्शाता है। आजकल ज्यादातर कंपनियां अपना वेतन सीटीसी के रूप में देती हैं। सीटीसी कर्मचारी का वास्तविक वेतन नहीं है। इसमें सेवा की अवधि के दौरान कर्मचारी को प्रदान की जाने वाली सुविधाएं भी शामिल हैं।
What is the gross salary?
Gross salary is what an employee receives from the company before making mandatory or voluntary deductions. Hence, gross salary includes basic pay, bonus, and various allowances and is the amount before deducting any tax.
What is the salary in hand?
In simple words, Pay in Hand or Net Pay is the salary that an employee takes home. Also known as take-home pay, this is the amount an employee receives after taxes and other deductions. Therefore, net pay differs from gross salary because gross income does not include tax deductions. In contrast, net income is offset after deducting TDS, professional tax, and other company policy deductions.
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Difference Between CTC and Pay in Hand
The above discussion clearly explains the difference between CTC and payment in hand:
While CTC is the total salary package of an employee, the salary in hand is what is left after all deductions. Thus, CTC shows the total expenditure incurred by an employer on an employee during a financial year. On the other hand, in-hand salary is the amount that the employee eventually gets after TDS and other deductions.
Another important terminology is gross pay; This is the basic salary and other perks, bonuses, and benefits. You will learn how to calculate the salary in hand from gross pay in the following section.
How to calculate salary in hand from gross pay?
Here’s an example to show you how you can calculate in-hand pay from gross pay:
Let’s say you work in a tech firm where your gross salary is per annum. is Rs. 70,000, but your salary in hand is Rs. 56,000. Here are the details of your salary components and deductions:
|Basic Salary||Rs. 25,000|
|Travel Allowance||Rs. 15,000|
|Gross Salary||Rs. 70,000|
|Provident Fund||Rs. 3,000|
|Profession Tax||Rs. 500|
|Income Tax||Rs. 1,500|
|Loan Deduction||Rs. 9,000|
|Total Deductions||Rs. 14,000|
|Net Salary (Gross Salary – Deductions)||Rs. 56,000|
There are various online tax calculators available that can do the calculation without racking your brain with numbers.
Calculate your taxable income
To arrive at your taxable income, you must subtract eligible deductions from your gross pay. Here are the steps to do this:
- Calculate your gross pay by adding HRA, DA, traveling allowance, and special allowance to your basic pay.
- Next, subtract professional tax, HRA exemption, and standard deduction from gross salary.
- Add any commission/bonus, additional interest income, etc. to the amount received.
- Then, deduct the various deductions given under Section 80C, 80D, and Chapter VIA of the Income Tax Act.
- The amount you arrive at is your taxable income. Now, the income tax slab and rate applicable to you depend on this final income.
You can take the help of an online tax calculator to quickly arrive at your exact taxable income.
FAQs on CTC Full Form
Are CTC and Salary the same?
Company cost (CTC) and salary are not the same. CTC is the amount including annual salary and benefits, whereas salary is the amount that an employee gets after deduction.
Is CTC monthly or yearly?
CTC is the total salary package decided by the company for the employee.
How is CTC calculated?
CTC is calculated by considering several components, such as basic pay, allowances, insurance, EPF, etc.
What is the full form of ECTC?
The full form of ECTC is Expected Cost to the Company.
What is the CTC for an 18000 Salary?
Yearly / Monthly / Weekly / Hourly Converter:
If you earn ₹18,000 per month, your annual salary would be ₹216,000. This result is obtained by multiplying your basic pay by the number of hours, weeks, and months worked in a year, assuming you work 37.5 hours a week.
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What is the CTC for the 30000 Salary?
Yearly / Monthly / Weekly / Hourly Converter:
If you earn ₹30,000 per month, your annual salary would be ₹360,000.
What is the monthly salary of CTC?
CTC or Cost to Company is the total amount that a company spends (directly or indirectly) on an employee. It refers to the total salary package of the employee. CTC includes monthly components like basic pay, various allowances, reimbursements, etc.
What is CTC for 25000 Salary?
If you earn ₹ 25,000 annually living in India, you will be taxed ₹ 3,000. This means your net salary would be ₹22,000 per year or ₹1,833 per month. Your average tax rate is 12.0% and your marginal tax rate is 12.0%.
How is HR Salary Calculated?
It refers to the in-hand salary calculated after deducting income tax, professional tax, and other business policy deductions. This may vary according to different company policies. Net Salary = Basic Pay + HRA + Allowances – Income Tax – EPF – Professional Tax.