A business example
A fictional offer lists ₹6 lakh annual CTC, comprising ₹5.4 lakh gross cash salary and ₹60,000 of employer costs and benefits.
Total package
CTC is ₹6,00,000 a year in this offer.
Gross cash salary
₹5,40,000 ÷ 12 = ₹45,000 a month before employee deductions.
Take-home amount
Actual bank credit is determined after the relevant payroll deductions.
What this shows
Dividing CTC by twelve gives ₹50,000, but that is not this employee's monthly bank credit. These are assumed offer components, not prescribed contributions.
What it is often confused with
CTC, gross salary and take-home pay are different figures; the offer's components matter.
What to look at in your business
Ask for a component-by-component breakdown and identify conditional or non-cash benefits.
Context and further reading
This entry explains the business term. The related guide below provides the next layer of context; any applicable legal test depends on the transaction and relevant period.
Kosha.Services · Updated 2 October 2026