text: what is cost to company - " ctc " ?????????????? what is cost to company- ctc ??? is it true that the avg. starting salary quoted by respective b-schools ( eg. 5 lakhs/annum or 6 lakhs/annum etc ) is infact ctc, and that the actual cash in hand is only 60-70 % of the salary quoted ???  will fringe benefit tax have any impact on this ??? is this norm followed even in the corporate world ??? plzz guide me !!!!! hi. ctc as the name suggests is your total cost to company when you are employed. it means every single rupee the company spends on you is accounted here, including stututary obligations like the company's contribution to your pf and gratuity etc. obviously cash in hand will be much lower. whether 60-70% depends on what are the components of your ctc. the higher you grow up the corporate ladder the fringe benefits keep growing but the take home will not keep pace at the same rate. some components of your ctc do attract fringe benefit tax.