1. What is Take Home Salary?

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

2. How Does the Calculator Work?

The calculator uses the simple formula:

Where:

• Gross Salary — Total salary before any deductions
• Income Tax — Tax deducted as per 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

Details: Understanding salary components helps in better financial planning. Major deductions include:

• Income Tax: Calculated based on tax slabs
• Provident Fund: Retirement savings contribution
• Professional Tax: Deducted by state governments (varies by state)

4. Using the Calculator

Tips: Enter your gross annual salary and all applicable deductions. The calculator will show your annual take-home salary.

5. Frequently Asked Questions (FAQ)

Q1: What's the difference between CTC and take-home salary?
A: CTC (Cost to Company) includes all benefits (even those not received as cash), while take-home is the actual amount credited to your account.

Q2: How is income tax calculated?
A: Based on income tax slabs applicable for the financial year. New vs old tax regime has different calculations.

Q3: Is PF contribution mandatory?
A: For organizations with 20+ employees, PF contribution (12% of basic) is mandatory for employees earning up to ₹15,000 basic salary.

Q4: Why does professional tax vary?
A: Professional tax rates vary by state, with maximum of ₹2,500/year (e.g., ₹200/month in Maharashtra).

Q5: How can I increase my take-home salary?
A: Through tax-saving investments (under 80C), HRA exemption, LTA claims, and other tax deductions.