1. What is Take Home Salary?

Take home salary is the amount an employee receives after all deductions like taxes, provident fund, professional tax, etc. have been subtracted from the gross salary. For a 20 LPA package, this calculator helps estimate your actual in-hand salary.

2. How is Take Home Salary Calculated?

The calculator uses the following formula:

Where:

• Gross Salary — ₹20,00,000 per annum in this case
• Income Tax — As per your tax slab
• PF — Employee's contribution to Provident Fund (typically 12% of basic)
• Professional Tax — Varies by state (typically ₹200-₹250 per month)

3. Components of Salary Deduction

Income Tax: Calculated based on your tax slab after considering deductions under Section 80C, 80D, etc.

Provident Fund (PF): Typically 12% of basic salary, with employer matching contribution.

Professional Tax: State-level tax deducted from salary, maximum ₹2,500 per year.

4. Using the Calculator

Tips: Enter your expected annual income tax, PF contribution, and professional tax. The calculator will show your estimated take home salary from a ₹20 LPA package.

5. Frequently Asked Questions (FAQ)

Q1: What's the typical take home for 20 LPA?
A: For ₹20 LPA, take home is typically ₹1.2-1.4 lakh/month after all deductions, depending on tax regime and investments.

Q2: How can I increase my take home salary?
A: Opt for tax-saving investments, choose new tax regime if beneficial, and maximize deductions under sections like 80C, 80D.

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

Q4: What's not included in this calculation?
A: This doesn't include other deductions like health insurance, meal coupons, or special allowances that may affect take home.

Q5: How accurate is this calculator?
A: It provides a basic estimate. For precise calculation, consult a CA with your complete salary structure and investments.