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 represents the net salary deposited in your bank account.

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 (typically 12% of basic salary)
• Professional Tax — State-specific tax deducted from salary

3. Importance of Salary Calculation

Details: Understanding your take-home salary helps in financial planning, budgeting, and negotiating salaries. It gives a clear picture of your actual earnings after all mandatory deductions.

4. Using the Calculator

Tips: Enter your gross annual salary and all applicable deductions. The calculator will show your net annual take-home salary. For monthly salary, divide the result by 12.

5. Frequently Asked Questions (FAQ)

Q1: What's included in gross salary?
A: Gross salary includes basic pay, allowances (HRA, DA, etc.), bonuses, and other benefits before any deductions.

Q2: How is income tax calculated?
A: Income tax is calculated based on your taxable income and applicable tax slabs as per the current financial year.

Q3: Is PF contribution mandatory?
A: For organizations with 20+ employees, PF contribution (12% of basic salary) is mandatory under EPFO rules.

Q4: What is professional tax?
A: Professional tax is a state-level tax deducted from salaried individuals and professionals, with amounts varying by state.

Q5: Are there other deductions not included here?
A: Yes, some companies may deduct for health insurance, loan repayments, or other benefits which aren't accounted for in this basic calculator.