1. What is the Salary Calculation?

The salary calculator estimates your take-home pay (in-hand salary) by deducting income tax, provident fund contributions, and professional tax from your gross salary according to Indian tax laws for 2023.

2. How Does the Calculator Work?

The calculator uses the following formula:

Where:

• Gross Salary — Your total annual salary before deductions
• Income Tax — Calculated based on 2023 tax slabs
• Provident Fund — Typically 12% of basic salary
• Professional Tax — Varies by state (₹200/month default)

3. Understanding Salary Components

Income Tax Slabs (2023):

• Up to ₹2.5 lakh: No tax
• ₹2.5-5 lakh: 5%
• ₹5-10 lakh: 20%
• Above ₹10 lakh: 30%

Provident Fund: Typically 12% of basic salary (employee contribution)
Professional Tax: State-specific tax, typically ₹200/month

4. Using the Calculator

Tips: Enter your gross annual salary, PF percentage (default 12%), and professional tax (default ₹200/month). The calculator will estimate your take-home pay.

5. Frequently Asked Questions (FAQ)

Q1: What's the difference between gross and net salary?
A: Gross salary is your total earnings before deductions, while net salary (take-home pay) is what you receive after all deductions.

Q2: Is PF contribution mandatory?
A: For organizations with 20+ employees, EPF is mandatory with minimum 12% employee contribution.

Q3: How accurate is this calculator?
A: It provides estimates based on standard deductions. Actual salary may vary based on allowances, exemptions, and specific company policies.

Q4: What about other deductions like health insurance?
A: This calculator covers standard deductions. Additional voluntary deductions would further reduce take-home pay.

Q5: Are there tax exemptions not considered here?
A: Yes, exemptions under 80C, HRA, etc., are not included in this basic calculation.