Many of my friends, colleagues and juniors in India are sending me their offer letters, to judge whether their offer is worth on take home salary calculation front. Just sharing the take home salary excel calculator I created.
The Take Home Calculation
The Take Home calculation is the sum of Basic Pay, HRA, Conveyance, Education, LTA or other allowances.
Your Take home doesn’t include the Company Contribution to PF, or any other benefits given by your company.
* Tested & verified on HP, KONE, HCL, CSC, iNautix and Flextronics Payslips (best suits IT professionals in India)
You can download the excel sheet on successful payment. The excel sheet calculates exact monthly salary which you’ll receive inhand.
Note: Enter whatever is available in your offer letter, do not worry about the missing components. Some components PF, Company contribution to PF, Insurances etc aren’t included in the excel sheet, they aren’t a part of monthly salary.
There are 2 tabs in the excel sheet – One yearly and One monthly.
Download the calculator, enter your offer letter details into the orange boxes in the excel sheet, get your take home calculated in minutes
Explained: The Take Home or Monthly Salary Components
This is fixed, no bonuses or allowances are added in it. This is common across all companies. 12% Basic Pay deduction Employee Provident Fund account. Anything beyond 12% basic salary becomes taxable!
HRA / House Rent Allowance
This is an allowance given by the employer to the employee to fulfill the employee’s accommodation needs. This component is subject to tax exemption based on a calculation.
Conveyance or Transport Allowance
Transport allowance that companies give you; fully tax exempted (CTC should have this component mentioned for exemption).
This allowance is applicable if you have children. Maximum of 100 per month is tax exempted and limited to 2 children only (CTC should have this component mentioned to avail for exemption)
Medical allowance / Medical Reimbursement
Medical allowance is tax exempted up to INR 15000.. Anything over it is taxable
LTA / Leave Travel Allowance
You could claim a tax exemption on the LTA amount mentioned in your CTC. You will have to submit an up and down journey ticket ( with the receipt) to claim this amount.
(CTC should have this component mentioned to avail for exemption)
Meals / Meal Coupons
Some companies issue meal coupons Sodexo passes (CTC should have this component mentioned to avail for full tax exemption). Maximum limit is the amount mentioned in CTC.
Other allowances like Special Allowance, Advanced Statuatory Bonus, Supplementary Allowance, Lifestyle allowance, Holiday allowance, City Compensatory allowance, Deployment allowance / Performance incentives / Performance linked incentives, Personal allowance, Dearness Allowance are completely taxable.
I know my CTC and Split-ups, will this Calculator calculate my monthly in-hand salary?
Yes, of course!
Is this Calculator for Fixed Pay or Variable Pay?
It suits both.
The ‘Salary Calculator’ is designed to input only the Fixed Components of your CTC. Do not worry about the other missing components in the calculator, they are your variable components which doesn’t come to your hand monthly.
Which Companies use this Salary Calculator? Can you list them?
I’ve personally tested on HCL, CSC, KONE, Flextronics and iNautix salary payslips, all my colleagues are using it.
I received my offer letter from a company, but I am unable to understand it completely. Will this Calculator help?
Yes, of course!!!
Well, why do I need to understand the monthly salary components mentioned above?
The answer is simple, it gives an idea on how to save hard-earned money from being paid as income tax. Want to know more on income tax calculation? Click here