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), 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 as per income tax slabs
• PF — Employee's contribution to Provident Fund
• Professional Tax — State-level tax on employment

Explanation: This calculation helps employees understand their actual take-home pay after mandatory deductions.

3. Importance of Salary Calculation

Details: Understanding your in-hand salary helps in financial planning, budgeting, and comparing job offers. It's crucial for loan applications and other financial commitments.

4. Using the Calculator

Tips: Enter all amounts in INR (Indian Rupees). For accurate results, use your actual salary breakdown from your payslip or offer letter.

5. Frequently Asked Questions (FAQ)

Q1: What's the difference between gross and in-hand salary?
A: Gross salary is your total earnings 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, ESIC, or other benefits, but these are the standard mandatory deductions.

Q3: How is income tax calculated?
A: Income tax is calculated based on government-defined slabs and may vary based on your investments and tax-saving declarations.

Q4: Is PF contribution fixed?
A: Typically 12% of basic salary, but this may vary based on company policy and employee choice.

Q5: Does professional tax vary by state?
A: Yes, professional tax rates and slabs differ across Indian states.