Frequently Asked Questions
Frequently Asked Questions
Key deductions from your CTC of ₹6 lakh: (1) Employee EPF: 12% of Basic, (2) Income tax (TDS monthly), (3) Professional Tax: ₹200/month in Telangana, (4) Health insurance premium if included in CTC. The rest comes to you as in-hand salary.
A higher Basic component means higher EPF deduction but also higher HRA exemption potential. A lower Basic with higher Special Allowance reduces EPF but increases taxable income. Optimal structure balances HRA exemption (if renting) and 80C deductions to minimize income tax.
Yes — Professional Tax paid (₹2400/year in Telangana) is deductible from gross salary under Section 16(iii) of the Income Tax Act, regardless of whether you opt for Old or New Tax Regime.