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 have been subtracted from the gross salary. It represents the net amount credited to your bank account.

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

Explanation: The formula accounts for all mandatory deductions that reduce your gross salary to arrive at the actual take-home amount.

3. Importance of Salary Calculation

Details: Understanding your in-hand salary helps in financial planning, budgeting, and negotiating better compensation packages. It gives a clear picture of your actual monthly income after all statutory deductions.

4. Using the Calculator

Tips: Enter your annual gross salary and all applicable deductions in INR. The calculator will compute your annual in-hand salary. Divide by 12 for monthly in-hand salary.

5. Frequently Asked Questions (FAQ)

Q1: What's the difference between gross and in-hand salary?
A: Gross salary is your total salary 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 repayments, or other benefits which aren't included here.

Q3: How is professional tax calculated?
A: Professional tax varies by state in India, typically ranging from ₹0 to ₹2,500 per year.

Q4: Is PF contribution fixed at 12%?
A: For most employees, PF is 12% of basic salary, but this can vary in some cases.

Q5: How often should I calculate my in-hand salary?
A: You should recalculate whenever there are changes in your salary structure, tax laws, or deductions.