reduce your tax burden

Most of us fail to understand the difference between the cost to company (CTC) and the net salary. Cost to company is the aggregate of all forms of compensation and benefits offered by the company, while the net salary is the total amount received after deducting net tax liability on each component. People are often quick to become elated on receiving a higher CTC, failing to realize that the actual increase in the amount they receive in-hand may be marginal. This makes it necessary to understand the various components of CTC, which affect your in-hand salary directly.