1. What is In-Hand Salary?

In-Hand Salary is the actual amount an employee receives after all deductions like income tax, provident fund, professional tax, and other deductions 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 as per income tax slabs
• PF — Provident Fund contribution
• Professional Tax — State-imposed professional tax

Explanation: The calculation subtracts all mandatory deductions from the gross salary to give the actual take-home amount.

3. Importance of Salary Calculation

Details: Understanding in-hand salary helps in financial planning, loan applications, and evaluating job offers. It represents the actual disposable income.

4. Using the Calculator

Tips: Enter all amounts in INR. For monthly calculations, multiply the result by 12. Ensure all deduction values are accurate for precise results.

5. Frequently Asked Questions (FAQ)

Q1: What's included in gross salary?
A: Basic salary, HRA, allowances, bonuses, and other benefits before any deductions.

Q2: How is income tax calculated?
A: Based on income tax slabs applicable for the financial year. Calculators can help estimate this.

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

Q4: Does professional tax vary?
A: Yes, professional tax rates vary by state in India, typically ranging from ₹0-₹2,500/year.

Q5: Are there other deductions possible?
A: Yes, other deductions may include ESI, loan repayments, or voluntary contributions which aren't included here.