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 represents the net amount 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 calculated under old regime with applicable deductions
• PF — Employee's contribution to Provident Fund (typically 12% of basic salary)
• Professional Tax — State-specific tax deducted from salary (varies by state)

3. Importance of Salary Calculation

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

4. Using the Calculator

Tips: Enter your annual gross salary, estimated income tax under old regime, PF contribution, and professional tax. All values must be in INR.

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: How is income tax calculated under old regime?
A: Income tax is calculated based on your taxable income after deductions like HRA, LTA, 80C, etc., using the old tax slabs.

Q3: Is PF contribution fixed?
A: Typically 12% of basic salary, but can vary if you contribute more voluntarily.

Q4: Does professional tax vary by state?
A: Yes, professional tax rates differ across Indian states with maximum annual limit of ₹2,500.

Q5: Are there other deductions not included here?
A: This calculator covers major deductions, but your employer might deduct other amounts like insurance premiums or loan EMIs.