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 gross salary.

2. How Does the Calculator Work?

The calculator uses the following formula:

Where:

• Gross Salary — Total salary before any deductions
• Income Tax — Tax deducted based on income tax slabs
• PF — Provident Fund contribution
• Professional Tax — State-mandated professional tax

Explanation: The formula accounts for all mandatory deductions to calculate the net amount received by the employee.

3. Importance of Salary Calculation

Details: Accurate salary calculation helps employees understand their take-home pay and plan their finances accordingly.

4. Using the Calculator

Tips: Enter all values in INR. Ensure you have accurate figures for all deductions to get precise results.

5. Frequently Asked Questions (FAQ)

Q1: What is included in gross salary?
A: Gross salary includes basic pay, allowances, bonuses, and other benefits before any deductions.

Q2: How is income tax calculated?
A: Income tax is calculated based on government-defined tax slabs and may vary based on investments and deductions claimed.

Q3: What is the standard PF contribution?
A: Typically 12% of basic salary, but may vary based on company policy.

Q4: Does professional tax vary by state?
A: Yes, professional tax rates differ across Indian states.

Q5: Are there other deductions not included here?
A: This calculator includes major deductions, but there may be others like health insurance or loan repayments.