Example:Your CTC: 12LPA with 90% (10.8 LPA) fixed salary and 10% ( 1.2 LPA) variableMonthly Fixed Pay = 108000/12 = 90000Basic Salary : 30000/-EPF Deduction (12% Employee + 12% Employer Contribution) = 7200/-Gratuity (4.81% of basic) = 1443/-Monthly Net Salary (90000 - 7200 -1443) = 81357/-Tax CalculationHRA (40% of Basic) = 12000/- PMConveyance = 1600/- PMMedical = 1250/- PMSub Total PM = (12000+1600+1250) = 14850/- PMSub Total Yearly = 178200/-Investment (80 C) = 150000/- including EPF Employee contributionZero Tax Up to = 250000/-Total Taxable Income = [1019484 (84957*12)- 178200- 150000u2013250000] = 441284/-Tax 10% Slab on (2.5u20135.0) Lakh = 10% of 250000/- = 25000/- + 3% SAS = 25750/-Tax 20% Slab on Next (5.0u201310) Lakh = 20% of 191284/- = 38257/- + 3% SAS = 39405/-Monthly Applicable Tax = 5430/-Net Take Home Salary (After Tax & All Deductions) = 81357- 5430= 75927/-*Tax on variable pay & benefits would depends on company policy, amount payable************************************************************************Yearly Fix Pay = Yearly Fixed Pay (All Components) - EPF 24% (Employee 12% & Employer 12% Contribution - Government Taxes (As Per Tax Slab) - Gratuity (4.81%)Monthly Fix Pay = Yearly Fix Pay/12Yearly Variable Pay = Average Yearly Variable Pay (As per organization history) - Government TaxesMonthly Variable Pay = Yearly Variable Pay/12Monthly Pay (Total) = Monthly Fix Pay + Monthly Variable Pay