What is taken out of CTC
CTC here is basic pay, dearness allowance, HRA, a special allowance, employer PF, and a gratuity provision if you leave that on. Employee PF is 12% of basic plus dearness allowance. Employer PF is the same 12%. EDLI and the EPF admin charge are 0.5% each, and they stay off unless your CTC quote includes them.
The gratuity provision is 15 days of basic plus dearness allowance on a 26-day month, then spread over 12 months. The monthly rupee is rounded, then multiplied by 12. That follows section 4 of the Payment of Gratuity Act as a cost inside CTC. It is not cash in hand.
A worked example
CTC ₹12,00,000. Basic pay ₹4,80,000. HRA ₹2,40,000. No dearness allowance. PF is on the full basic pay, so employee PF and employer PF are each ₹57,600. The gratuity provision is ₹23,076. The special allowance is ₹3,99,324. Cash gross is ₹11,19,324.
New regime, resident, salaried, no professional tax. Taxable income is ₹10,44,324, which is under ₹12 lakh, so tax is ₹0. In-hand pay for the year is ₹10,61,724, or ₹88,477 a month.
Old regime, Bengaluru, rent ₹15,000 a month. The HRA exemption is ₹1,32,000. Taxable income is ₹8,79,724. Tax is ₹91,983. In-hand pay for the year is ₹9,69,741.