Step 1. Determine Gross Salary:
Before we can calculate the Net Salary, we should first determine the Gross salary. Gross Salary is obtained by subtracting the Employer's contribution Provident Fund contribution(EPF) and Gratuity from Cost to Company(CTC).
Gross Salary = Cost to Company(CTC) - Employer's PF Contribution(EPF) - Gratuity.
Step 2. Determine Taxable Income: Taxable income is obtained by subtracting Conveyance Allowance, House Rent Allowance(HRA), Leave Travel Allowance(LTA) Professional Tax, Medical Bills, Medical Insurance, Tax Saving Investments .
Taxable Income = Gross Salary - Employee's PF Contribution(PF) - Conveyance Allowance - HRA - LTA - Medical Bills - Medical Insurance - Tax. Saving Investments - Other Deductions.
Step 3. Calculate Income Tax: Calculate Income tax by applying Income Tax Slabs and rates. Apply 2% Educational cess and 1% Higher and Secondary cess to the income tax .
Step 4. Calculate Take Home Salary; Subtract the Income Tax, Provident Fund (PF) and Professional Tax from the Gross Salary(determined in step 1).
Take Home Salary = Gross Salary - Income Tax - Employee's PF Contribution(PF) - Prof. Tax.
Calculated values may not match with your payslip due the following reasons:
1. Your variable pay is paid quarterly, so you will not have the same take home each month, in the months the variable pay is paid, your take home salary will be more than the calculated value. In other months, it would be less than the calculated amount.
2. Your CTC includes your variable pay, as the name indicates variable pay amount differs based on various factors. This will cause your CTC to vary, this will have a knock-on effect on your take home. You can correct his by adjusting your CTC to match the actual amounts in variable pay. For example, if your CTC is ₹ 15 Lakhs which includes a variable pay of ₹ 2 lakhs, however you only received ₹ 1 lakh as part of your variable pay for this financial year. In this case enter your CTC as ₹ 14 lakhs for accurate calculations.
3. The Salary Calculator calculates your PF and EPF to be 12% of your Basic Pay and Gratuity as 4.81% of Basic Pay. If your PF is paid as a different percentage, you need to enter the actual mount paid to you in the PF field for accurate calculations.
We do not host India Salary Calculator on our servers. We did not scan it for viruses, adware, spyware or other type of malware. This app is hosted by Galad and passed their terms and conditions to be listed there. We recommend caution when installing it.
The APK Download link for India Salary Calculator is provided to you by apps112.com without any warranties, representations or guarantees of any kind, so access it at your own risk.
If you have questions regarding this particular app contact the publisher directly. For questions about the functionalities of apps112.com contact us.
|
| ||||
| Downloads: 551 | ||||
| Updated At: 2024-04-23 10:07:18 | ||||
| Publisher: Massinissa ATEBATA | ||||
| Operating System: Android | ||||
| License Type: Free |