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 simple 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-imposed tax on employment (varies by state)

3. Importance of Salary Calculation

Details: Understanding your in-hand salary helps in financial planning, loan applications, and assessing job offers. It's crucial to know exactly how much you'll receive after all mandatory deductions.

4. Using the Calculator

Tips: Enter all values in INR. For accurate results, use your actual salary components from your payslip. All values must be positive numbers.

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 the actual amount deposited in your account.

Q2: Are there other deductions not included here?
A: Yes, some companies may deduct for health insurance, meal coupons, or other benefits. This calculator covers the major mandatory deductions.

Q3: How is PF calculated?
A: Typically 12% of your basic salary, with an equal contribution from your employer (not deducted from your salary).

Q4: Does professional tax vary by state?
A: Yes, professional tax rates differ across Indian states, with maximum typically around ₹2,500/year.

Q5: How accurate is this calculator?
A: It provides a basic estimate. For exact figures, consult your payslip or HR department as deductions may vary based on multiple factors.