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, professional tax, etc. It's the net salary deposited in 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 — As per India's new tax regime slabs
• Provident Fund — Typically 12% of basic salary
• Professional Tax — Varies by state (e.g., ₹2,500/year in Karnataka)

3. Importance of Salary Calculation

Details: Understanding your in-hand salary helps in financial planning, loan applications, and budgeting. It shows the actual disposable income after mandatory deductions.

4. Using the Calculator

Tips: Enter your gross annual salary, select appropriate income tax slab, provident fund percentage (default 12%), and professional tax as per your state. All values must be positive numbers.

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 in the new regime?
A: The new regime has lower rates but fewer deductions: 0% up to ₹3L, 5% (₹3-7L), 10% (₹7-12L), 15% (₹12-15L), 20% (₹15-20L), and 30% above ₹20L.

Q3: Is provident fund always 12%?
A: Typically yes for employees, but the percentage can vary in some cases. The calculator allows you to adjust this percentage.

Q4: Does professional tax vary by state?
A: Yes, professional tax rates differ across Indian states. The default ₹2,500/year is for Karnataka - adjust as per your state.

Q5: Are there other deductions not included here?
A: This calculator covers major deductions. Others like health insurance, loan repayments, etc. would be additional.