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, etc. It represents the net amount credited to your bank account each month.

2. How Does the Calculator Work?

The calculator uses the following formula:

Where:

• Gross Salary — Total salary before any deductions
• Income Tax — Tax deducted based on income tax slabs
• PF — Employee's contribution to Provident Fund (typically 12% of basic salary)
• Professional Tax — State-specific tax deducted from salary

Explanation: This calculation helps employees understand their actual take-home pay after all mandatory deductions.

3. Importance of Salary Calculation

Details: Understanding your in-hand salary helps in financial planning, budgeting, and comparing job offers. It ensures transparency between employer and employee regarding salary deductions.

4. Using the Calculator

Tips: Enter your gross annual salary and all applicable deductions. For monthly calculations, multiply the monthly figures by 12 to get annual amounts.

5. Frequently Asked Questions (FAQ)

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

Q2: How is income tax calculated?
A: Income tax is calculated based on government-defined slabs and varies depending on your total income and tax-saving investments.

Q3: Is PF contribution mandatory?
A: For organizations with 20+ employees, PF contribution is mandatory for employees earning up to ₹15,000 basic salary per month.

Q4: What is professional tax?
A: Professional tax is a state-level tax deducted from salaried individuals and professionals. Rates vary by state.

Q5: Are there other deductions not included here?
A: Yes, some companies may deduct for health insurance, meal coupons, or other benefits which would further reduce in-hand salary.