1. What is In-Hand Salary?

In-Hand Salary is the actual amount an employee takes home after all deductions like income tax, provident fund (PF), and professional tax. It's also known as net salary or take-home salary.

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. Importance of Salary Calculation

Details: Understanding salary components helps in financial planning, comparing job offers, and ensuring correct salary payments. It's especially important during job interviews and salary negotiations.

4. Using the Calculator

Tips: Enter all amounts in INR (Indian Rupees). For accurate results, use actual deduction values from your payslip or offer letter.

5. Frequently Asked Questions (FAQ)

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

Q2: Are there other deductions besides these?
A: Some companies may have additional deductions like health insurance, loan recoveries, or other benefits contributions.

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 professional tax the same across India?
A: No, professional tax varies by state and is typically a few hundred rupees per month.

Q5: Why is this important for interviews?
A: Many companies discuss CTC (Cost to Company) which includes all benefits. Understanding take-home salary helps evaluate actual compensation.