1. What is In-Hand Salary?

In-hand salary is the actual amount an employee receives after all deductions like taxes, provident fund, professional tax, etc. It's the net amount credited to your bank account each month.

2. How is In-Hand Salary Calculated?

The basic formula for calculating in-hand salary is:

For a ₹35,000 CTC, the formula becomes:

• \( \text{In-Hand Salary} = 35,000 - \text{Income Tax} - \text{PF} - \text{Professional Tax} \)

3. Components of Salary Deduction

Income Tax: Calculated based on your income slab and tax regime chosen (old or new).
Provident Fund (PF): Typically 12% of basic salary, with employer contributing an equal amount.
Professional Tax: State-specific tax deducted from salary (varies from ₹0 to ₹200 per month).

4. Using the Calculator

Instructions: Enter your monthly deductions (Income Tax, PF, and Professional Tax) in INR. The calculator will compute your in-hand salary from a ₹35,000 CTC.

5. Frequently Asked Questions (FAQ)

Q1: What is the difference between CTC and in-hand salary?
A: CTC (Cost to Company) is your total salary package including all benefits. In-hand salary is what you actually receive after deductions.

Q2: How is PF calculated?
A: Typically 12% of your basic salary. For ₹35,000 CTC, basic is usually 40-50% of CTC, making PF around ₹1,680-₹2,100.

Q3: Is professional tax the same across India?
A: No, it varies by state. Some states like Karnataka deduct ₹200/month, while others may have different slabs.

Q4: Can I reduce my tax deductions?
A: Yes, through tax-saving investments (80C), HRA exemption, medical reimbursements, etc.

Q5: Why is my in-hand salary less than expected?
A: Check if all deductions (tax, PF, PT) are accounted for. Also verify if your CTC includes variable components like bonuses.