What is CTC?
Cost to company: everything an employer spends on an employee in a year, including money that never reaches the employee in that year.
It counts the employer provident fund contribution, which goes to a retirement account, and a gratuity accrual payable only after five years of service. Both are real money and neither is take-home, which is why a package and a salary are different numbers.
Not to be confused with Gross salary
Gross salary is CTC less the employer-side items, and is what payroll actually processes. In-hand is gross less your own provident fund, professional tax and income tax. Each step down is a different figure and offers routinely quote the largest one.