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 the net salary credited to 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

Explanation: The formula subtracts all mandatory deductions from the gross salary to arrive at the net salary received by the employee.

3. Importance of Salary Calculation

Details: Understanding your in-hand salary helps in financial planning, loan applications, and comparing job offers. It gives a clear picture of your actual take-home pay.

4. Using the Calculator

Tips: Enter all values in INR. For accurate results, use exact deduction amounts from your salary slip. Gross salary should be your annual CTC (Cost to Company) or monthly salary multiplied by 12.

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: Yes, some companies may deduct for health insurance, meal coupons, or other benefits, but these are the standard mandatory deductions.

Q3: How is income tax calculated?
A: Income tax is calculated based on your income slab under the old or new tax regime as per your choice.

Q4: Is professional tax the same across India?
A: No, professional tax varies by state and is typically a few hundred rupees per month.

Q5: Can PF be excluded from deductions?
A: No, PF is a mandatory deduction for salaried employees in India, though the percentage may vary in some cases.