# First Salary Financial Planning: A Plan for Year One > First salary financial planning for India: why in-hand is less than CTC, your first credit card, an emergency fund, first SIP and your first tax return. Source: https://trykosh.com/for/first-jobbers Kosh for first-jobbers # First salary financial planning, without the lecture Your first salary is the best time to set up habits, and the easiest time to lose track. Kosh reads your bank and card statements and shows where the money went, before the habits set. ## What gets in the way ### In-hand is less than the offer letter A INR 9 lakh CTC doesn't mean INR 75,000 a month. Employer PF, gratuity, variable pay and professional tax come out first. ### The first credit card A lifetime-free card, a limit of a full month's salary and a minimum due that looks small. Pay only the minimum and the interest runs at well over 30% a year. ### Gone by the 20th Rent, delivery, cabs, a phone on EMI and weekend plans. Nothing feels big, yet nothing is left before the next salary. ### An education loan and family expectations EMIs start six months after graduation, and you may be sending money home. Savings feel like something for later. ### Forms nobody explains Regime declaration, Form 12BB, Form 16, AIS and your first ITR, each with a deadline and none of it taught in college. ## What Kosh does about it ### Shows where the salary went Upload your salary account and card statements. Kosh sorts every transaction, from a INR 49 UPI payment to rent, and maps the month. ### Catches card trouble early Kosh spots card interest and late fees in your statements and reminds you by email before the card due date. ### Sets your first goals An emergency fund, a trip, a bike or a down payment years away, each turned into a monthly SIP amount that fits your real budget. ### Explains your tax in your numbers Kosh works out your tax under both regimes from your actual salary and rent, and tells you which to declare. ### Answers the questions you'd rather not ask Ask the chat CFO whether you can afford that phone on EMI, and it answers from what you actually spent last month. ## Free tools for first-jobbers [Free tool**In-hand salary calculator**Turn a CTC offer into what actually lands in your bank account each month, after PF, gratuity, professional tax and income tax.](/tools/in-hand-salary-calculator)[Free tool**50/30/20 budget calculator**The 50/30/20 rule splits take-home pay into three buckets: half for needs, 30% for wants and 20% for savings. Enter your salary to see the rupee amounts, adjust the split for your city, and check how your current spending measures up.](/tools/50-30-20-budget-calculator)[Free tool**Emergency fund calculator**An emergency fund pays the bills if your income stops or a big unplanned cost lands. This calculator sizes yours from your essential spending, EMIs and how steady your income is, and shows a simple way to park it.](/tools/emergency-fund-calculator)[Free tool**SIP calculator**See what a monthly SIP could grow to. Enter how much you invest each month, an assumed yearly return and how long you'll stay invested.](/tools/sip-calculator)[Free tool**Step-up SIP calculator**Raise your SIP a little every year and watch the gap with a flat SIP grow. Enter a starting amount, the yearly increase, an assumed return and the period.](/tools/step-up-sip-calculator)[Free tool**Credit card minimum due calculator**Paying the minimum due keeps your card in good standing but barely touches the debt. See how long it would take and what it would cost.](/tools/credit-card-minimum-due-calculator)[Free tool**Credit utilisation calculator**Your credit utilisation is how much of your card limits you're using. It is one of the factors in your credit score that you can change fastest.](/tools/credit-utilization-calculator)[Free tool**EPF calculator**Project your Employees' Provident Fund balance at retirement, with yearly raises, the employer's split between EPF and EPS, and any voluntary PF you add.](/tools/epf-calculator) ## A CFO for first-jobbers. Upload a statement and Kosh maps your money, works out your tax and tells you the one thing to fix first. Free to start. [Start free](/signup?via=for-first-jobbers) ## From CTC to in-hand Your CTC includes things you don't get monthly. **EPF** takes 12% of basic from you, and your employer's matching 12% is usually inside your CTC too; of the employer's share, 8.33% of up to INR 15,000 of wages goes to the pension scheme. Gratuity, insurance and variable pay may also be counted. The [in-hand salary calculator](/tools/in-hand-salary-calculator) and the [CTC vs in-hand guide](/learn/ctc-vs-in-hand-salary) show your real monthly figure. EPF isn't lost money: it earned 8.25% for FY 2025-26. Good news on tax: in the new regime for FY 2026-27, a salary of up to **INR 12.75 lakh** with no other income pays no tax, thanks to the INR 75,000 standard deduction and the rebate up to INR 12 lakh. You'll usually still need to file a return once your income after the standard deduction is above INR 4 lakh, even if the tax is nil. ## A first-year plan in five steps 1. **Write down your fixed costs:** rent, EMIs, money home, phone and internet. The [50/30/20 calculator](/tools/50-30-20-budget-calculator) gives a starting split. 2. **Build a starter emergency fund** of one month's expenses, then grow it to three to six. See the [emergency fund calculator](/tools/emergency-fund-calculator). 3. **Start a small SIP** in your first or second month, even INR 2,000. The [SIP calculator](/tools/sip-calculator) shows what it grows to, and a [step-up SIP](/tools/step-up-sip-calculator) raises it with each hike. 4. **Get health cover of your own** if your employer's is your only one, because it ends when you leave the job. 5. **Know your tax regime** before HR asks for it in April, and download Form 16 and AIS in June. Salaried returns are due by 31 July. If you have an **education loan**, put its EMI in your fixed costs from the first month, not when the moratorium ends. Interest on it is deductible under 80E for up to eight years, but only in the old regime, which most first-jobbers won't choose; check with the [old vs new regime calculator](/tools/old-vs-new-tax-regime-calculator). If you send money home, make it a fixed monthly amount you've agreed on rather than whatever's left. A known number is easier to plan around, for you and for your family. ## Your first credit card, used well A card builds your credit history, which you'll need for a home or car loan later. Use it like a debit card: spend only what's already in your account, set up autopay for the **full** amount, and keep usage under about 30% of the limit. The [minimum due guide](/learn/credit-card-minimum-due-trap) shows why paying only the minimum is the most expensive habit you can pick up in year one. [Free tool**In-hand salary calculator**Turn a CTC offer into what actually lands in your bank account each month, after PF, gratuity, professional tax and income tax.](/tools/in-hand-salary-calculator)[Free tool**Credit card minimum due calculator**Paying the minimum due keeps your card in good standing but barely touches the debt. See how long it would take and what it would cost.](/tools/credit-card-minimum-due-calculator)[Free tool**Credit utilisation calculator**Your credit utilisation is how much of your card limits you're using. It is one of the factors in your credit score that you can change fastest.](/tools/credit-utilization-calculator)[Free tool**SIP calculator**See what a monthly SIP could grow to. Enter how much you invest each month, an assumed yearly return and how long you'll stay invested.](/tools/sip-calculator) ## Frequently asked questions What should I do with my first salary? Start by listing your fixed costs and building a small emergency fund of one month's expenses. Then start a modest SIP, get health cover of your own, and set your credit card to autopay the full amount each month. Do I have to pay income tax on my first salary? In the new regime for FY 2026-27, a salary of up to INR 12.75 lakh with no other income pays no tax, because of the INR 75,000 standard deduction and the rebate. You may still need to file a return if your income after the standard deduction is above INR 4 lakh. Why is my in-hand salary less than my CTC divided by 12? CTC includes your employer's EPF contribution, gratuity, insurance and often variable pay, which you don't receive monthly. Your own 12% EPF contribution, professional tax and any TDS also come out of your gross pay. Should I get a credit card with my first job? A card helps build credit history if you pay the full bill on time every month. Keep spending under about 30% of the limit and never pay only the minimum due, which leads to interest of well over 30% a year. Is Kosh useful if my finances are simple? Kosh is free to start with one statement a month, a money summary, your top recommendation and 10 questions a month. That is often enough in the first year to see where your salary goes and fix one thing at a time. General information for planning, not tax, legal or investment advice. Kosh is an educational financial planning tool by Primedepth Labs. It is not a SEBI-registered investment adviser and does not offer personalised investment advice, hold your money or execute trades. Markets carry risk; read scheme documents carefully and consult a registered adviser before acting.