1. What is Net Salary Calculation?

The net salary calculation determines take-home pay by subtracting all deductions (income tax, provident fund, professional tax) from gross salary. This helps employees understand their actual in-hand salary after all 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
• Provident Fund — Employee's contribution to EPF
• Professional Tax — State-level tax on employment

Explanation: The calculation accounts for mandatory deductions required by Indian tax laws and employment regulations.

3. Importance of Salary Calculation

Details: Accurate salary calculation helps in financial planning, loan applications, and understanding tax liabilities. It's essential for both employees and employers.

4. Using the Calculator

Tips: Enter all amounts in INR. Ensure you have accurate figures for all deductions from your salary slip for precise calculation.

5. Frequently Asked Questions (FAQ)

Q1: What's included in gross salary?
A: Basic salary, allowances (HRA, DA, etc.), bonuses, and any other earnings before deductions.

Q2: How is income tax calculated?
A: Based on annual income tax slabs. The calculator uses your provided tax amount.

Q3: Is provident fund mandatory?
A: For organizations with 20+ employees, EPF is mandatory for employees earning ≤ ₹15,000/month.

Q4: What is professional tax?
A: State-level tax deducted monthly (varies by state, typically ₹200-₹300/month).

Q5: Are there other deductions not included here?
A: Yes, some companies may have other deductions like insurance, loans, etc. which aren't accounted for.