CTCcalc.com is your go-to tool for effective calculations of CTC. It stands for "Cost To Company". This measures the total costs of each employee to a company.
What is CTC?
The total amount of money a company spends annually on their employee is known as CTC (Cost to Company). In technical words, it is the total yearly compensation cost of an employee paid by the company. Both employers and employees have to monitor the CTC every year. It is not just the sum of monthly salary an employee receives in their bank account. CTC (Cost to Company) includes basic salary, employee allowances, bonuses, PF, etc.
Full Form of CTC
The full form of CTC is Cost To Company. It refers to the total annual expense a company bears for employing an individual.
What does the CTC (Cost to Company) include?
- In your employment contract, the company mentioned the fixed base amount that you agreed to. This is known as Basic Salary that forms a major portion of the employee's CTC.
- Aside from the employee's salary, CTC also includes different allowances offered by the company. For example, medical allowances, house rent allowances, etc.
- Employees with good performances and contribution to company growth are given incentives. These performance based employee rewards are known as variable pay and bonuses.
- Another integral part of the CTC is the combination of different employee contributions. For example, PF (Provident Fund), insurance premiums, gratuity, etc. These are all paid by the employer.
- Secondary benefits like meals, tours, etc are also among the top components of CTC.
What is a CTC Calculator?
CTC Calculator is among the most effective and reliable CTC Calculator tools. It can calculate CTC (Cost To Company) precisely and very fast. Without the risk of mistakes, you don't have to worry about anything. CTCcalc.com breaks down the CTC figure into its various components. This includes basic salary, HRA, PF, taxes, allowances, etc. Hence, everything paid by the employer to an employee. Being beneficial for both the parties, CTCcalc.com is a highly recommended tool. Your experience of calculating the CTC figure will be stress-free and this tool will present accurate results. A major highlight of CTCcalc.com is that you can download the CTC calculations in the PDF format.
How does this CTC calculator work?
The working of CTCcalc.com tool is very simple yet effective. All of the authentic CTC calculation results are produced due to proven concepts, formulas, and algorithms. The users who want to see a breakdown of their CTC have to follow easy steps. You are supposed to provide your annual CTC figure. Other optional inputs are job location, received HRA, percentage of PF, bonuses, etc. Thereafter, CTCcalc.com will present an elaborate breakdown of the CTC's components. All of the contributions made by the employer and taxable income are calculated with accuracy. All of the old and new tax regimes are updated within CTCcalc.com's database. This tool produces the results by using all the rules revolving around CTC.
How to download The CTC calculator results in PDF format?
This is a step-by-step guide regarding the download process of CTC results in a PDF:
- Open CTC Calculator.
- Fill in your annual CTC figure into the box along with optional inputs like job location, etc. Thereafter, submit all the details by clicking on "Calculate".
- Once the CTCcalc.com tool has presented all the results, you'll see the "Download PDF" button. Tap on it to initiate the PDF download process.
- Within a few seconds, your CTC calculation results will be downloaded in a well-structured PDF file.
Understanding The CTC Tax Regime
The Income Tax system offers a total of two parallel tax regimes i.e., the New Tax Regime and the Old Tax Regime. By default, the New Tax Regime applies on the corporate entities. Whereas, it is optional to use the Old Tax Regime. As a taxpayer, the choice is entirely given to you. While making this decision consider which regime offers you the best tax efficiency. Based on your total income and tax deductions, one of these two regimes will be beneficial for you. Please note that the tax rates and deductions vary as per the chosen regime. The differences are discussed elaborately ahead.
Difference Between The New and Old CTC Tax Regime
| Basis of Comparison | New Tax Regime | Old Tax Regime |
|---|---|---|
| Default Applicability (FY 2024–25) | Default regime, automatically applicable | Must be specifically opted while filing ITR |
| Tax Slab Structure | Lower tax rates with progressive slabs | Higher tax rates with traditional slabs |
| Deductions & Exemptions | Most deductions like 80C, 80D, HRA not allowed | Wide range of deductions and exemptions allowed |
| Standard Deduction | ₹75,000 for salaried individuals | ₹50,000 for salaried individuals |
| HRA Exemption | Fully taxable | Partially exempt (subject to conditions) |
| PF & Other Allowances | Limited exemption benefits | Multiple exemptions available |
| Flexibility to Switch (Salaried – Non-Business) | Can switch every financial year | Can switch every financial year |
| Flexibility to Switch (Business Income) | Allowed to switch only once | Once opted out of New Regime, Old Regime can be used only once |
| Tax-Free Income Limit | Income up to ₹12 lakh is tax-free | Income up to ₹5 lakh is tax-free |
| Best Suited For | Individuals with fewer deductions | Individuals with multiple deductions and investments |
What is Basic Salary?
Basic salary is the initial amount discussed and agreed with the employer. It is also mentioned in the job contract. You recieve it every month in exchange of your employment. Basic salary doesn't include any allowances or benefits. It is responsible for a huge chunk of the CTC. Upon an increment, your basic salary also changes annually.
What is HRA?
HRA refers to the House Rent Allowance. This is a special residential allowance paid by the company employer. It's meant to cover an individual's housing cost while working for the company. Account to the New Tax Regime, the entirety of your HRA money is taxable. Whereas, the Old Tax Regime offers partial exemption of the HRA amount.
What is DA?
Indeed, DA stands for Dearness Allowance. You can understand it as a cost of living adjustment money paid to private and public employees. According to sources, DA is calculated as a percentage through the employee's basic salary. In other words, a percentage of your salary amount. Please note that an employee's DA is fully taxable under the law.
What is PF?
The full form of PF is known to be Provident Fund. Basically, it is the employer's contribution towards a retirement fund. These savings can be very helpful after an employee retires. Often, the Provident Fund also includes the company's shares. PF is directly governed and handled according to the EPFO rules.