1. What is In-Hand Salary?

In-Hand Salary refers to the actual amount an employee receives after all deductions like taxes, provident fund, and professional tax have been subtracted from the gross 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 based on income tax slabs
• PF — Provident Fund contribution
• Professional Tax — State-mandated professional tax

Explanation: This calculation provides the net amount that will be credited to the employee's bank account each pay period.

3. Importance of Salary Calculation

Details: Understanding your in-hand salary helps in financial planning, budgeting, and ensuring you're being compensated correctly according to your employment agreement.

4. Using the Calculator

Tips: Enter all values in INR (Indian Rupees). For accurate results, use values from your salary slip or HR department.

5. Frequently Asked Questions (FAQ)

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

Q2: How is income tax calculated?
A: Income tax is calculated based on government-defined tax slabs and varies depending on your income level and tax-saving investments.

Q3: What is PF (Provident Fund)?
A: PF is a retirement savings scheme where both employee and employer contribute 12% of basic salary each month.

Q4: Is professional tax the same across all states?
A: No, professional tax varies by state in India, with different slabs and maximum amounts.

Q5: Are there other deductions not included here?
A: Yes, there might be other deductions like health insurance, meal coupons, or loan recoveries that would further reduce in-hand salary.