Frequently Asked Compensation Questions
Deep dives with exact calculations into the statutory questions Indian tech and corporate professionals ask most frequently.
Why Is In-Hand Salary Lower Than CTC ÷ 12?
The full waterfall breakdown of Employer EPF (12%), Gratuity (4.81%), Employee EPF, Professional Tax, and New Regime TDS for a ₹12 LPA package.
How Much Deduction Needed for Old Regime to Win?
The exact mathematical breakeven deduction threshold across ₹10L, ₹12L, ₹15L, ₹20L, ₹30L, and ₹50L CTC under Budget 2024 rules.
How Does Section 87A Marginal Relief Work?
How the statutory proviso protects employees earning between ₹7.75 Lakhs and ₹8.20 Lakhs gross salary from paying more tax than their actual raise.
How Are RSUs and ESOPs Taxed in India?
Two-stage equity taxation: Section 17(2) perquisite TDS at vesting (up to 35.88%) vs 12.5% LTCG upon sale, plus mandatory Schedule FA disclosure.
Can I Claim Both HRA & Home Loan Interest?
The 3 legally permissible scenarios to claim Section 10(13A) HRA exemption and Section 24(b) home loan interest simultaneously under the Old Regime.
Corporate NPS (80CCD(2)) in New Tax Regime
Save up to ₹1,00,000+ extra tax under the New Tax Regime via 14% employer NPS contributions. Budget 2024 private sector equalization explained.
State-Wise Professional Tax (PT) Deduction Chart
Article 276 constitutional rules. Why Delhi, Gurugram, and Noida deduct ₹0 while Bengaluru and Mumbai deduct ₹200–₹300/month.
How Is Gratuity Calculated? (15/26 Formula)
The 15/26 formula, the 5-year continuous service rule, the 4 years 240 days Madras High Court exception, and ₹20 Lakh tax exemption under Section 10(10).