Need help to calculate income tax and monthly in hand
Hi Folks - I have recently received an offer of CTC INR 40 LPA where following is the CTC breakdown provided by the organisation.
| TOTAL CTC | ₹40,00,000 |
|---|---|
| Basic 50% of CTC | ₹20,00,000 |
| HRA 25% of CTC | ₹1,000,000.00 |
| Home Office Allowance 5% of CTC | ₹200,000.00 |
| Gratuity 2.40% of CTC | ₹96,000.00 |
| PF Employer Contribution | ₹21,600 |
I did the calculation assuming gratuity and employer contribution being tax exempted. I am in the new tax regime btw. Based on the assumption following are my calculations.
| Components | Yearly | Monthly |
|---|---|---|
| TOTAL CTC | ₹4,000,000.00 | ₹333,333.33 |
| Basic (B) | ₹2,000,000.00 | ₹166,666.67 |
| HRA (H) | ₹1,000,000.00 | ₹83,333.33 |
| Home Office Allowance(HO) | ₹200,000.00 | ₹16,666.67 |
| Gratuity (G) | ₹96,000.00 | ₹8,000.00 |
| PF Employer Contribution (PF1) | ₹21,600.00 | ₹1,800.00 |
| PF Employee Contribution (PF2) | ₹21,600.00 | ₹1,800.00 |
| Medical Insurance (M) | ₹0.00 | ₹0.00 |
| Rest of CTC (R) | ₹660,800.00 | ₹55,066.67 |
| Total Taxable Income (TI = B+H+HO+PF2+R) | ₹3,882,400.00 | ₹323,533.33 |
| Income Tax (IT) | ₹864,720.00 | ₹72,060.00 |
| Professional Tax (PT) | ₹2,400.00 | ₹200.00 |
| Income Post Tax (IPT = TI - (IT+PT)) | ₹3,036,880.00 | ₹253,073.33 |
| Income In Hand (IH = IPT - PF2) | ₹3,015,280.00 | ₹251,273.33 |
Can you please help me validate whether my assumption are correct or if there is anything wrong in this calculation ?