Salary Calculations: If you are a salaried class, then a certain amount will come in your account every month. Often many people have to understand that according to their CTC (Cost to Company) their take home salary or in hand salary will be calculated. Here we are providing you information about this.
There is a formula to calculate salary, on the basis of which we can know how to extract net salary from gross salary of someone. Here you are being told how if you get a salary of 1 lakh rupees, then how much money can be taken home as in hand salary.
Salary Formula – Basic + HRA + other allowances which will come out of which the amount that will come after minus Provident Fund- Income Tax- Insurance-Tax will be considered as your in-hand salary.
Now let’s understand this with an example
Under the formula on the salary of 1 lakh rupees, in hand salary will sit like this
Salary or CTC – Rs 1 lakh
Basic salary – 40% of CTC = Rs 40,000
HRA- 50% of basic = Rs 20,000
Other allowance – 70% of basic = Rs 28,000
Deduction – Rs 4800 to be deducted month wise as Provident Fund = 12% of Basic
At the same time, a combined Rs 7200 will be deducted as insurance and tax.
If seen in this way, 40 thousand + 20 thousand + 28 thousand = 88,000 rupees can come in the form of in hand salary in the account of the employee whose monthly salary is 1 lakh rupees.
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