1. What is In-Hand Salary?

In-hand salary is the actual amount an employee receives after all deductions like taxes, provident fund, and professional tax have been subtracted from the gross salary.

2. How is In-Hand Salary Calculated?

The calculator uses the following formula:

Where:

• Gross Salary — Total salary before any deductions (₹14,50,000 in this case)
• Income Tax — Tax deducted as per income tax slabs
• Provident Fund — Employee's contribution to EPF (typically 12% of basic salary)
• Professional Tax — State-specific tax deducted from salary

3. Components of Salary Deduction

Income Tax: Calculated based on current tax slabs. For ₹14.5 LPA, the tax would be approximately ₹1.5-2.5 lakhs depending on deductions.

Provident Fund: Typically 12% of basic salary (if basic is ₹50,000, EPF would be ₹6,000 per month or ₹72,000 annually).

Professional Tax: Varies by state, typically ₹200-₹2,500 per year.

4. Using the Calculator

Tips: Enter your expected income tax, provident fund contribution, and professional tax. The calculator will show your estimated in-hand salary.

5. Frequently Asked Questions (FAQ)

Q1: What is the typical in-hand salary for 14.5 LPA?
A: Approximately ₹1-1.1 lakh per month after all deductions, depending on tax-saving investments.

Q2: How can I reduce my tax liability?
A: Through Section 80C investments (up to ₹1.5 lakh), HRA exemption, medical insurance (80D), and other deductions.

Q3: Is PF contribution mandatory?
A: For organizations with 20+ employees, EPF contribution is mandatory for employees earning up to ₹15,000 basic salary.

Q4: What's the difference between CTC and in-hand salary?
A: CTC includes all benefits (PF, gratuity, etc.) while in-hand is what you actually receive in your bank account.

Q5: Does this calculator account for bonuses?
A: No, this calculates based on fixed annual salary. Bonuses are taxed separately.