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'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 — Provident Fund contribution (typically 12% of basic salary)
• Professional Tax — State-specific tax (usually ₹200-₹2,500/year)

3. Components of Salary Calculation

Gross Salary: Includes basic salary, HRA, DA, allowances, bonuses, etc.
Income Tax: Calculated based on current tax slabs and deductions.
PF: Employee's contribution to Employees' Provident Fund.
Professional Tax: Varies by state, deducted by employer.

4. Using the Calculator

Tips: Enter all amounts in INR. For monthly figures, divide annual amounts by 12. Professional tax varies by state (typically ₹200/month in most states).

5. Frequently Asked Questions (FAQ)

Q1: What's the difference between CTC and in-hand salary?
A: CTC (Cost to Company) includes all benefits (even those not received as cash), while in-hand salary is what you actually receive.

Q2: How is income tax calculated?
A: Based on income tax slabs. For FY 2023-24, no tax for income up to ₹2.5 lakh, 5% for ₹2.5-5 lakh, etc.

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

Q4: What's not included in this calculation?
A: Other deductions like ESIC, voluntary deductions, loan repayments, etc. are not included.

Q5: How often is professional tax deducted?
A: Typically monthly, with annual maximum varying by state (₹2,500 in Maharashtra, ₹2,400 in Karnataka).