Question 1

Why is CTC higher than in-hand salary?

Accepted Answer

CTC includes employer PF, gratuity provision, insurance, bonuses, and other benefits that may not be paid monthly as cash.

Question 2

Is employer PF deducted from salary?

Accepted Answer

Employer PF is part of CTC but is not deducted from monthly gross salary. Employee PF is deducted from salary.

Question 3

Does the calculator include all company allowances?

Accepted Answer

No. It models common statutory components. Actual payslips may include bonus, variable pay, insurance, LTA, food cards, and reimbursements.

Question 4

Which tax regime gives higher in-hand salary?

Accepted Answer

The new regime often helps when deductions are low, while the old regime can help when you claim HRA, 80C, 80D, and home loan benefits.