1. What is In-Hand Salary?

In-hand salary is the actual amount an employee takes home after all deductions like taxes, provident fund, professional tax, etc. For a 7.5 LPA (Lakhs Per Annum) package, the in-hand salary will be significantly less than ₹7,50,000 due to these mandatory deductions.

2. How is In-Hand Salary Calculated?

The calculator uses the following formula:

Where:

• 7,50,000 — Annual salary (₹7.5 LPA)
• Income Tax — Tax deducted based on income tax slabs
• PF — Employee's contribution to Provident Fund (typically 12% of basic salary)
• Professional Tax — State-specific tax deducted from salary

3. Components of Salary Deduction

Income Tax: Calculated based on current tax slabs. For ₹7.5 LPA, typically falls in 5% or 20% slab after deductions.

Provident Fund (PF): Mandatory 12% of basic salary (up to ₹15,000 basic) goes to EPF. Employee contribution is 12% of basic + DA.

Professional Tax: Varies by state (typically ₹200-₹2,500 annually). Deducted monthly in most states.

4. Using the Calculator

Tips: Enter all deduction amounts in INR. The calculator will show both annual and monthly in-hand salary amounts after deductions.

5. Frequently Asked Questions (FAQ)

Q1: What is the typical in-hand salary for 7.5 LPA?
A: Typically ₹55,000-₹65,000/month depending on tax regime, deductions, and salary structure.

Q2: How is income tax calculated on 7.5 LPA?
A: Under new tax regime (FY 2023-24), tax would be ₹37,500 (5% of ₹7.5L - ₹3L). Old regime may have lower tax with deductions.

Q3: Is PF mandatory for all employees?
A: Yes, for organizations with 20+ employees. Contribution is 12% of basic salary (capped at ₹15,000 basic).

Q4: Can I reduce my tax liability on 7.5 LPA?
A: Yes, through Section 80C (₹1.5L), 80D (health insurance), HRA exemption, and other deductions under old tax regime.

Q5: Why is professional tax different in different states?
A: Professional tax is a state-level tax, so rates vary. Maximum is ₹2,500/year (₹208/month in states like Maharashtra).