1. What is In-Hand Salary?

In-hand salary is the actual amount an employee takes home 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 — Provident Fund contribution (typically 12% of basic salary)
• Professional Tax — State-specific tax (Punjab rates)

Explanation: This calculation gives the net amount that will be credited to your bank account each pay period.

3. Importance of Salary Calculation

Details: Understanding your in-hand salary helps in financial planning, loan applications, and verifying that all deductions are correct as per government regulations.

4. Using the Calculator

Tips: Enter your gross annual salary and all applicable deductions. For accurate results, use your latest payslip or tax statement figures.

5. Frequently Asked Questions (FAQ)

Q1: What is professional tax in Punjab?
A: Professional tax rates vary by state. In Punjab, it's typically a nominal amount deducted monthly from salaries.

Q2: How is PF calculated?
A: PF is usually 12% of your basic salary, with equal contribution from employer and employee.

Q3: What's not included in this calculation?
A: This doesn't include other possible deductions like health insurance, loan repayments, or voluntary contributions.

Q4: Can I use this for monthly salary calculation?
A: Yes, just divide the annual result by 12 for monthly in-hand salary.

Q5: Are there any exemptions?
A: Certain allowances may be tax-exempt. Consult a tax professional for precise calculations.