1. What is In-Hand Salary?

In-Hand Salary is the actual amount an employee takes home after all deductions like income tax, provident fund (PF), professional tax, and other statutory deductions.

2. How Does the Calculator Work?

The calculator uses the following formula:

Where:

• Gross Salary — Total salary before any deductions
• Income Tax — Tax deducted as per income tax slabs
• PF — Provident Fund contribution (typically 12% of basic salary)
• Professional Tax — State-specific tax on employment

3. Importance of Salary Calculation

Details: Understanding your in-hand salary helps in financial planning, budgeting, and comparing job offers. It gives a clear picture of your actual take-home pay after all mandatory deductions.

4. Using the Calculator

Tips: Enter your gross annual salary and all applicable deductions in INR. The calculator will compute your annual in-hand salary which you can divide by 12 for monthly amount.

5. Frequently Asked Questions (FAQ)

Q1: What's the difference between gross and in-hand salary?
A: Gross salary is your total salary before deductions, while in-hand salary is what you actually receive after all deductions.

Q2: Are there other deductions not included here?
A: Yes, some companies may deduct for health insurance, meal coupons, or other benefits which aren't accounted for in this basic calculation.

Q3: How is income tax calculated?
A: Income tax is calculated based on government tax slabs and varies depending on your income level and tax-saving investments.

Q4: Is PF always 12% of basic salary?
A: Typically yes, but some organizations may have different contribution structures.

Q5: Does professional tax vary by state?
A: Yes, professional tax rates and slabs differ across Indian states.