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.

2. How is In-Hand Salary Calculated?

The calculator uses the following formula:

Where:

• Gross Salary — Total salary before any deductions (₹6,50,000 in this case)
• Income Tax — Tax deducted as per income tax slabs
• Provident Fund — Employee's contribution to EPF (typically 12% of basic salary)
• Professional Tax — State-specific tax on employment (varies by state)

3. Components of Salary Deduction

Income Tax: Calculated based on current tax slabs. For ₹6.5 LPA, the tax would be approximately ₹30,000-₹40,000 with standard deductions.

Provident Fund: Typically 12% of basic salary (if basic is ₹25,000, EPF would be ₹3,000/month or ₹36,000/year).

Professional Tax: Varies by state (e.g., ₹200/month in Maharashtra, ₹2,500/year maximum).

4. Using the Calculator

Tips: Enter your expected deductions to calculate your take-home salary. The gross salary is fixed at ₹6,50,000 for this calculator.

5. Frequently Asked Questions (FAQ)

Q1: What is the typical in-hand salary for 6.5 LPA?
A: Approximately ₹45,000-₹50,000 per month after all deductions, depending on your tax savings and EPF contribution.

Q2: How can I increase my in-hand salary?
A: By optimizing tax-saving investments (80C, 80D, HRA) and reducing EPF contribution (if optional).

Q3: Is professional tax the same across India?
A: No, it varies by state with different slabs and maximum limits.

Q4: Are there other deductions not included here?
A: Yes, some companies may deduct for health insurance, meal coupons, or other benefits.

Q5: How accurate is this calculator?
A: It provides a basic estimate. For precise calculation, consult your payroll department considering your specific salary structure.