CTC is essentially the sum total of Direct Advantages (amount paid to a worker on an annual basis), Indirect Advantages (sum the employer pays on behalf of the worker) and Conserving Contributions (saving schemes the worker is entitled to). Indirect Advantages Standard Income Interest Free Loans Superannuation advantages Dearness Allowance (DA) Food Coupons/Subsidized meals Company Provident Fund (EPF) Conveyance Allowance Business Leased Accommodation Gratuity Home Lease Allowance (HRA) Medical and Life Insurance premiums paid by company Medical Allowance Income Tax Savings Leave Travel Allowance (LTA) Office Lease Lorry Allowance Telephone/ Mobile Phone Allowance Incentives or perks Special Allowance/ City Compensatory allowance, etc.
The entire amount of your basic income will belong to your in-hand salary. As part of your income structure, you will receive a number of allowances which help you look after your standard needs. These consist of: HRA belongs to the CTC an employer offers its workers. HRA usually comes with tax benefits in case workers pay for accommodation each year and comes up to about 10% of the take-home salary.
Note that an LTA just spends for the travel allowance not for other expenses like food, beverages, and so on. https://hindiswaraj.com/ctc-full-form-in-hindi/ keep rising year or year and Dearness Allowances are offered to tackle this problem. This is essentially a cost of living modification offered to alleviate the effects of inflation on the economy.