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 also known as take-home salary.

2. How Does the Calculator Work?

The calculator uses the following formula:

Where:

• Gross Salary — Total salary before any deductions
• Income Tax — Tax as per 2025 income tax slabs
• PF — Provident Fund contribution (typically 12% of basic salary)
• Professional Tax — State-specific tax on employment

3. Importance of Salary Calculation

Details: Understanding your in-hand salary helps in financial planning, budgeting, and negotiating better compensation packages.

4. Using the Calculator

Tips: Enter all amounts in INR. For accurate results, use your actual tax and deduction amounts rather than estimates.

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: How is income tax calculated?
A: Income tax is calculated based on 2025 tax slabs which vary based on your total income and age.

Q3: Is PF mandatory?
A: For organizations with 20+ employees, PF contribution is mandatory for employees earning up to ₹15,000 per month.

Q4: What is professional tax?
A: Professional tax is a state-level tax on employment, with maximum annual liability of ₹2,500 in most states.

Q5: Are there other deductions not included here?
A: Yes, some companies may have other deductions like health insurance, loan repayments, or other benefits.