Experienced professionals, please help me here. I am an IT administrator in a start-up company. My salary is 5 LPA. How much should I expect in hand? Would there be any tax deduction that I should be aware of? What else would be deducted from my CTC? Also, I live in Delhi NCR, so would this be enough?
If there are more than 20 employees, then they will deduct 12% of your Basic pay for EPF. 10% TDS deducted on Net salary. Professional tax 200Rs.
RS 34,800/- will be your In-hand salary. If your base pay is 50% of your net salary as you live in metro city.
I don't know what is the fixed component share in that 5LPA.
You can claim full refund on that TDS.
As an IT administrator, 5 LPA is enough, since it is the average that every IT admin gets. For 5 LPA in-hand salary would range between INR 38,900 and INR 41,400 per month. This is the amount you will get after your base pay, allowances and tax deductions are calculated. Your current CTC will include basic salary, HRA (house rent allowance), PF, special allowances and other benefits. However, these factors vary from one company to another. But, in most companies, 50% of CTC is the basic salary, 40-50% is HRA and 12% is PF of the basic salary.
Tax deductions in India are allowed under different sections:
As for living in Delhi with INR 5LPA, it is not at all difficult for your home to be in the capital city. Furthermore, there are various PGs and apartments for rent, which you can look out for and make an informed decision.
Hey there! Your annual CTC is subjected to tax and other mandate deductions. Here is how it comes down to 5 LPA in hand salary after all deductions -
15 to 20% is deducted as income tax. But, here, it depends on the tax slab you come under and its subsequent exemptions.
12% of your base salary is deducted as your contribution towards your Provident Fund.
Other deductions
In Delhi NCR, this sum as an in hand salary is good enough to enjoy a modest lifestyle.
To answer the first part of your question, that is what will be your in-hand salary as an IT administrator with 5 LPA, your average in-hand salary will be around 4.2-4.5 LPA. As per tax deductions, here are the following deductions you can expect:
Income Tax: 10-15% of CTC, however, it depends on tax slabs and exemptions.
Provident Fund- 12% of your base salary (mandatory).
Other deductions
For the last part of the question, whether it is enough to live in Delhi NCR at a salary range of 4.2-4.5 LPA (in-hand), there’s good news! Yes, it is possible, if you’re looking for a modest life.
Depending on your location, if you want to rent a place that can cost around INR 15,000- INR 25,0000.
41666 - 3600 PF - 200 = 37866/- in hand. No tax deduction.
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