Why is in-hand salary lower than CTC?▾
CTC includes employer costs you never receive monthly — employer PF, gratuity provision, insurance — and your own deductions like employee PF, professional tax and income tax come out of gross pay.
What is the ₹15,000 PF wage ceiling?▾
PF is mandatory only on basic wages up to ₹15,000 a month, so many employers cap contributions at ₹1,800 a month each. Some contribute 12% of full basic instead, which lowers in-hand pay but increases retirement savings.
Is 12 lakh CTC tax-free?▾
Usually yes under the new regime, because gross salary after PF and gratuity is typically below ₹12.75 lakh, and income up to ₹12 lakh after the ₹75,000 standard deduction attracts no tax due to the 87A rebate.
Is professional tax deductible in the new regime?▾
No. Under the new regime only the standard deduction and a few specific items are allowed; professional tax is still deducted from pay but is not a tax deduction.
