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 is In-Hand Salary Calculated?

The calculator uses the following 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
• Professional Tax — State-imposed professional tax

3. Components of Salary Deduction

Details: Understanding salary components helps in better financial planning and tax optimization.

4. Using the Calculator

Tips: Enter all values in INR. Gross salary should be annual amount. Other deductions should be for the same period.

5. Frequently Asked Questions (FAQ)

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

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

Q3: Is PF contribution mandatory?
A: For organizations with 20+ employees, PF contribution (12% of basic salary) is mandatory.

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

Q5: Can I reduce my tax liability?
A: Yes, through investments under Section 80C, 80D, HRA exemptions, and other tax-saving instruments.