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), professional tax, and other deductions. It's the net salary 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 deducted as per income tax slabs
• PF — Employee's contribution to Provident Fund (typically 12% of basic salary)
• Professional Tax — State-specific tax deducted from salary

Explanation: The calculation subtracts all mandatory deductions from the gross salary to arrive at the net take-home amount.

3. Importance of Salary Calculation

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

4. Using the Calculator

Tips: Enter your gross annual salary and all applicable deductions. The calculator will compute your annual in-hand salary. Divide by 12 for monthly amount.

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: Are there other deductions besides these?
A: Yes, some companies may deduct for health insurance, meal coupons, or other benefits. These vary by employer.

Q3: How is professional tax calculated?
A: Professional tax varies by state in India, typically ranging from ₹0 to ₹2,500 per year.

Q4: Is PF always 12% of basic salary?
A: Typically yes, but some organizations may have different contribution structures.

Q5: Can I use this for monthly salary calculation?
A: Yes, just enter monthly figures and multiply the result by 12 for annual equivalent.