1. What is In-Hand Salary?

In-Hand Salary is the actual amount an employee receives after all deductions like taxes, provident fund, professional tax, etc. It's the net amount credited to your bank account.

2. How is In-Hand Salary Calculated?

The calculator uses the following formula:

Where:

• Gross Salary — Total salary before any deductions
• Income Tax — Tax deducted as per income tax slabs
• Provident Fund — Employee's contribution to EPF (typically 12% of basic salary)
• Professional Tax — State-imposed tax on employment (varies by state)

3. Components of Salary Deduction

Income Tax: Calculated based on your income tax slab rates. The new tax regime has different rates than the old regime.

Provident Fund: Typically 12% of basic salary, with an equal contribution from employer. Only employee's contribution is deducted from salary.

Professional Tax: Varies by state, typically ₹200-₹250 per month with annual ceiling of ₹2,500 in most states.

4. Using the Calculator

Tips: Enter your annual gross salary and all deductions in INR. The calculator will show both annual and monthly in-hand salary amounts.

5. Frequently Asked Questions (FAQ)

Q1: What's the difference between CTC and in-hand salary?
A: CTC (Cost to Company) includes all benefits (even those not received as cash), while in-hand salary is what you actually receive after deductions.

Q2: How can I reduce my tax deductions?
A: Through tax-saving investments (Section 80C), HRA exemption, medical insurance (Section 80D), and other deductions under Chapter VI-A.

Q3: Is professional tax applicable in all states?
A: No, some states like Delhi don't have professional tax. Check your state's rules.

Q4: Can I get my entire PF amount when I resign?
A: You can withdraw the full amount only if unemployed for 2+ months. Otherwise, only your contribution plus interest is payable.

Q5: Why is my in-hand salary less than expected?
A: Check for additional deductions like health insurance, meal coupons, or other benefits you might have opted for.