- CTC
- Cost to Company. Total annual expense the employer books for you, including their contributions to PF, gratuity, and NPS.
- Basic
- The base salary component. Drives statutory contributions (PF, gratuity).
- HRA
- House Rent Allowance. Under the new regime, HRA is not tax-exempt; it's just an accounting split.
- Employer PF
- Provident Fund contribution paid by the employer — 12% of basic, capped at ₹15,000 basic per month.
- Employee PF
- The matching 12% deducted from your salary.
- Gratuity
- Statutory long-service benefit, accrued at 4.81% of basic each year.
- Standard deduction
- A flat ₹75,000 subtracted from gross salary before computing tax under the new regime.
- Section 87A rebate
- A rebate that reduces income tax to zero when taxable income is at or below ₹12,00,000 under the new regime for FY 2026-27.
- Cess
- Health & education cess. 4% of income tax plus surcharge.
- Professional tax
- A state-level tax on employment. We use a widely-applicable ₹2,400 per year.