1. What is In-Hand Salary?

In-hand salary is the actual amount an employee receives after all deductions like income tax, provident fund, professional tax, and other statutory deductions from the gross salary.

2. How is In-Hand Salary Calculated?

The calculator uses the following formula:

Where:

• Gross Salary — ₹25,00,000 per annum in this case
• Income Tax — As per applicable tax slabs
• PF — Employee's contribution to Provident Fund (typically 12% of basic salary)
• Professional Tax — State-specific tax (typically ₹200-₹250 per month)

3. Components of Salary Deduction

Income Tax: Calculated based on current tax slabs. For ₹25 LPA, the tax would be approximately ₹5,00,000-₹6,00,000 depending on deductions.

Provident Fund (PF): Typically 12% of basic salary (up to ₹15,000 basic salary). For ₹25 LPA, PF could be around ₹21,600-₹36,000 annually.

Professional Tax: Varies by state, typically ₹200-₹250 per month (₹2,400-₹3,000 annually).

4. Using the Calculator

Tips: Enter all deduction amounts in INR. The calculator will subtract these from ₹25,00,000 to show your estimated in-hand salary.

5. Frequently Asked Questions (FAQ)

Q1: What is the typical in-hand salary for ₹25 LPA?
A: Typically ₹1,60,000-₹1,80,000 per month after all deductions, depending on tax regime and investments.

Q2: How can I increase my in-hand salary?
A: Through tax-saving investments (80C, 80D, HRA), choosing the new tax regime if beneficial, and optimizing salary structure.

Q3: Is professional tax the same across India?
A: No, it varies by state. Maharashtra charges ₹200/month (₹2,400/year), while Karnataka charges ₹250/month (₹3,000/year).

Q4: What other deductions might apply?
A: Other possible deductions include health insurance premiums, meal coupons, and other voluntary deductions.

Q5: How accurate is this calculator?
A: It provides a basic estimate. For precise calculations, consult a CA as many factors affect actual take-home pay.