What is the in hand salary of 13,85,000 LPA in Cognizant?

Calculating the In-Hand Salary for a 13.85 LPA CTC at Cognizant

To Calculate the In-Hand salary for a 13.85 LPA CTC (Cost to Company) at Cognizant, we need to consider the various components of the salary structure and applicable deductions.

Cognizant's typical salary structure includes the following elements:

• Basic Salary
• House Rent Allowance (HRA)
• Conveyance Allowance
• Special Allowance
• Provident Fund (PF)
• Gratuity
• Performance Bonus

Expecting a 13.85 LPA CTC with a 10% performance bonus, the Salary breakdown would be:

Component	Monthly	Yearly
Basic Salary	₹57,292	₹6,87,500
House Rent Allowance (HRA)	₹28,646	₹3,43,750
Conveyance Allowance	₹1,600	₹19,200
Special Allowance	₹14,462	₹1,73,550
Performance Bonus	-	₹1,38,500
Provident Fund (PF)	₹6,875	₹82,500
Gratuity	₹2,750	₹33,000
Total CTC	₹1,15,625	₹13,85,000

Let's now work out the deductions and arrive at the salary in hand:

• Provident Fund (Employee's Contribution): ₹6,875 per month
• Professional Tax: ₹200 per month
• Income Tax: Varies based on tax slab and deductions

The estimated monthly deductions, assuming no major deductions and a 30% tax bracket, would be:

Deduction	Monthly	Yearly
Provident Fund (Employee's Contribution)	₹6,875	₹82,500
Professional Tax	₹200	₹2,400
Income Tax (30%)	₹14,375	₹1,72,500
Total Deductions	₹21,450	₹2,57,400

Finally, the in-hand salary can be calculated as:

In-Hand Salary = Total CTC - Total Deductions

In-Hand Salary = ₹13,85,000 - ₹2,57,400

In-Hand Salary = ₹11,27,600 per year

Therefore, for a 13.85 LPA , the average CTC is 85 LPA and after adjustment with tax at 30% and minor deductions would amount to approximately ₹94,000/- per month or ₹11,27,600/- per annum.

The reader should understand that the amount in the employee’s hand will be dependent on the taxes, deductions, and any other end-of-service benefits or allowances offered by the company.