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 statutory deductions. It represents 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 as per 2025 income tax slabs
• PF — Provident Fund contribution (typically 12% of basic salary)
• Professional Tax — State-specific tax (usually ₹200-₹300 per month)

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, loan applications, and budgeting. It gives a clear picture of your actual monthly income after all statutory deductions.

4. Using the Calculator

Tips: Enter your annual gross salary, estimated income tax (based on 2025 slabs), PF contributions, and professional tax. The calculator will show your estimated monthly in-hand salary.

5. Frequently Asked Questions (FAQ)

Q1: What's the difference between gross and net salary?
A: Gross salary is your total salary before deductions, while net salary (in-hand salary) is what you actually receive after all deductions.

Q2: How is income tax calculated for 2025?
A: Income tax is calculated based on 2025 tax slabs which consider your income level and applicable deductions under various sections.

Q3: Is PF contribution fixed?
A: Typically, PF is 12% of your basic salary, but this can vary depending on company policies and employee options.

Q4: Does professional tax vary by state?
A: Yes, professional tax rates differ across Indian states, with most states charging ₹200-₹300 per month.

Q5: Are there other deductions not included here?
A: This calculator covers major deductions, but your actual salary may have other deductions like health insurance, loan repayments, etc.