One of the primary reasons to do an MBA is to get a job with a high salary. MBA average salary ranges between Rs 8 lakhs to Rs 35 lakhs depending on the b-school one has pursued the degree from. Talking about salary, two most common terms that we come across is CTC and in hand salary. Employee’s in hand salary is less when compared to the promised CTC and hence knowing the difference between the in hand salary and CTC is quite important for all of us. This will also help you to negotiate with the salary package or the CTC that you get in the future. As per the new tax regime there is no income tax upto Rs 12 lakhs. This is a common confusion whether you fall in the tax bracket or not. Post the buzz of the Union Budget 2025 one must be curious to know at what CTC would you get the exact in hand salary and here is the detailed information about CTC vs Inhand salary as per new tax regime.
What is In Hand Salary?
Your in hand salary is the exact amount that gets credited into your bank account after making all the deductions. The deductions include provident fund amount, insurance amount, professional tax, etc. Your in hand salary gives you a clear picture of your earnings and all the finance related decisions such as investments and savings should be taken based on the in hand salary.
What is CTC?
The full form of CTC is Cost to Company. The CTC is the total cost incurred by the company for one particular employee. This includes all the direct, indirect and saving contributions. Direct benefits include dearness allowance, house rent allowance, medical allowance, bonus, etc. Indirect benefits includes food coupons, income tax savings, loans without interest, etc whereas saving contribution are provident funds, gratuity, etc.
Difference Between CTC and In Hand Salary
| Factor | CTC | In Hand Salary |
| Meaning | This is the complete package including the direct and indirect benefit without making and mandatory deductions | This is the exact earning of the employee and the amount one gets after all the deductions |
| Transparency | This is usually much higher and to attract employees and includes benefits that are not enjoyed by the employee directly. | This is the exact amount that an employee gets credited in the bank account |
| Relevance | This is the complete package including the direct and indirect benefits without making and mandatory deductions | This is used for taking financial decision and budgeting |
| Deductions | It does not show any deduction directly and includes the complete package | This has mandatory deductions such as PF, professional tax, TDS, etc. |
Join the Largest CAT Preparation Community in India
CTC vs Inhand Salary As Per Old Tax Regime
| Income | Tax Under Old Regime | Income Under Old Regime (Yearly) | Income Under Old Regime (Monthly) |
| 10,000,000 | 3,200,340 | 6,799,660.00 | 566,638.33 |
| 8,000,000 | 2,513,940 | 5,486,060.00 | 457,171.67 |
| 5,000,000 | 1,349,400 | 3,650,600.00 | 304,216.67 |
| 3,500,000 | 881,400 | 2,618,600.00 | 218,216.67 |
| 2,500,000 | 569,400 | 1,930,600.00 | 160,883.33 |
| 2,000,000 | 413,400 | 1,586,600.00 | 132,216.67 |
| 1,800,000 | 351,000 | 1,449,000.00 | 120,750.00 |
| 1,500,000 | 257,400 | 1,242,600.00 | 103,550.00 |
| 1,200,000 | 163,800 | 1,036,200.00 | 86,350.00 |
| 1,000,000 | 106,600 | 893,400.00 | 74,450.00 |
| 600,000 | 23,400 | 576,600.00 | 48,050.00 |
CTC vs Inhand Salary As Per New Tax Regime
| Income | Tax Under New Regime | Income Under New Regime (Yearly) | Income Under New Regime (Monthly) |
| 10,000,000 | 2,925,780 | 7,074,220.00 | 589,518.33 |
| 8,000,000 | 2,239,380 | 5,760,620.00 | 480,051.67 |
| 5,000,000 | 1,099,800 | 3,900,200.00 | 325,016.67 |
| 3,500,000 | 631,800 | 2,868,200.00 | 239,016.67 |
| 2,500,000 | 319,800 | 2,180,200.00 | 181,683.33 |
| 2,000,000 | 192,400 | 1,807,600.00 | 150,633.33 |
| 1,800,000 | 150,800 | 1,649,200.00 | 137,433.33 |
| 1,500,000 | 97,500 | 1,402,500.00 | 116,875.00 |
| 1,200,000 | 0 | 1,200,000.00 | 100,000.00 |
| 1,000,000 | 0 | 1,000,000.00 | 83,333.33 |
| 600,000 | 0 | 600,000.00 | 50,000.00 |
Enroll for iQuanta CAT 2025 Course
