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), professional tax, and other statutory deductions. It's also known as net salary or take-home salary.

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 (₹)
• \( PF \) — Employee's contribution to Provident Fund (₹)
• \( Professional\ Tax \) — State-specific professional tax (₹)

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: Understanding salary components helps in financial planning, tax optimization, and ensuring correct salary payments. It's essential for both employees and employers.

4. Using the Calculator

Tips: Enter all amounts in Indian Rupees (₹). For accurate results, use actual deduction values from your salary slip. Gross salary should be your annual CTC (Cost to Company).

5. Frequently Asked Questions (FAQ)

Q1: What's the difference between CTC and in-hand salary?
A: CTC (Cost to Company) includes all benefits and deductions, while in-hand salary is what you actually receive after all deductions.

Q2: Are there other deductions besides these?
A: Yes, there might be other deductions like ESIC, loan repayments, or voluntary deductions which aren't included in this basic calculation.

Q3: How is income tax calculated?
A: Income tax is calculated based on your annual income and applicable tax slabs as per Indian income tax laws.

Q4: Is professional tax the same across India?
A: No, professional tax varies by state and is subject to maximum limits set by the government.

Q5: Can I use this for monthly salary calculation?
A: Yes, but ensure all values are for the same period (either all monthly or all annual figures).