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 Cost to Company (CTC).

2. How is In-Hand Salary Calculated?

The calculator uses the following equation:

Where:

• \( CTC \) — Cost to Company (₹3,20,000 in this case)
• \( Income Tax \) — Tax deducted based on income slab
• \( PF \) — Employee's contribution to Provident Fund (typically 12% of basic salary)
• \( Professional Tax \) — State-specific professional tax (usually ₹200-₹300 per month)

3. Components of Salary Deduction

Income Tax: Calculated based on current tax slabs. For ₹3.2 LPA, tax would be minimal or zero under new tax regime.
Provident Fund (PF): Typically 12% of basic salary (part of CTC).
Professional Tax: Varies by state, typically ₹200-₹300 per month.

4. Using the Calculator

Tips: Enter your expected deductions (Income Tax, PF, Professional Tax) to calculate your approximate in-hand salary. The CTC is fixed at ₹3,20,000 for this calculator.

5. Frequently Asked Questions (FAQ)

Q1: Why is my in-hand salary less than CTC?
A: CTC includes all costs to company including benefits and deductions. In-hand salary is after all deductions.

Q2: How can I increase my in-hand salary?
A: You can opt for tax-saving investments under Section 80C to reduce taxable income.

Q3: Is PF contribution refundable?
A: Yes, PF is your savings and can be withdrawn when leaving job or at retirement.

Q4: What's the typical in-hand for 3.2 LPA?
A: Approximately ₹25,000-₹28,000 per month depending on deductions.

Q5: Does this include bonuses?
A: This calculator assumes fixed CTC. Bonuses would be additional if applicable.