In Hand Salary Calculator India New Regime Ay

In-Hand Salary Formula:

\[ \text{In-Hand Salary} = \text{Gross Salary} - \text{Income Tax (New Regime)} - \text{PF} - \text{Professional Tax} \]

Gross Salary (INR/year):

₹

Income Tax (INR, new regime):

₹

PF (INR):

₹

Professional Tax (INR):

₹

In-Hand Salary:

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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, and other statutory deductions. It represents the net amount credited to your bank account.

2. How Does the Calculator Work?

The calculator uses the following formula:

\[ \text{In-Hand Salary} = \text{Gross Salary} - \text{Income Tax} - \text{PF} - \text{Professional Tax} \]

Where:

Gross Salary — Total salary before any deductions (₹/year)
Income Tax — Tax amount as per new regime (₹)
PF — Employee's contribution to Provident Fund (₹)
Professional Tax — State-mandated professional tax (₹)

Note: This calculator uses the new tax regime for income tax calculations.

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 take-home pay after all mandatory deductions.

4. Using the Calculator

Tips: Enter your gross annual salary, estimated income tax under new regime, PF contribution, and professional tax. All values must be in Indian Rupees (₹).

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 under new regime?
A: The new regime has lower tax rates but fewer deductions. Tax slabs vary based on income levels.

Q3: Is PF contribution mandatory?
A: For organizations with 20+ employees, PF contribution (12% of basic salary) is mandatory.

Q4: What is professional tax?
A: A tax levied by state governments on salaried individuals, typically ranging from ₹200-₹2,500 per year.

Q5: Are there other deductions not included here?
A: Yes, some companies may deduct for health insurance, meal coupons, or other benefits which aren't accounted for in this calculator.