1. What is In-Hand Salary?

In-Hand Salary is the actual amount an employee receives after all deductions like income tax, provident fund (PF), professional tax, and other deductions from the gross salary.

2. How Does the Calculator Work?

The calculator uses the following formula:

Where:

• \( \text{Gross Salary} \) — Total salary before any deductions (INR/year)
• \( \text{Income Tax} \) — Tax deducted as per income tax slabs (INR)
• \( \text{PF} \) — Employee's contribution to Provident Fund (INR)
• \( \text{Professional Tax} \) — State-imposed professional tax (INR)

Explanation: The formula subtracts all mandatory deductions from the gross salary to calculate the actual amount received by the employee.

3. Importance of Salary Calculation

Details: Accurate salary calculation helps employees understand their compensation structure, plan finances, and verify payroll calculations.

4. Using the Calculator

Tips: Enter all amounts in INR. For accurate results, use exact values from your salary slip or HR department.

5. Frequently Asked Questions (FAQ)

Q1: What's the difference between gross and in-hand salary?
A: Gross salary is the total compensation before deductions, while in-hand salary is the amount 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 included in this basic calculation.

Q3: How is income tax calculated?
A: Income tax is calculated based on government-defined slabs and may include various exemptions and deductions.

Q4: Is PF contribution fixed?
A: Typically 12% of basic salary, but can vary based on company policy and employee choice.

Q5: Does professional tax vary by state?
A: Yes, professional tax rates differ across Indian states with maximum caps defined by law.