1. What is In-Hand Salary?

In-Hand Salary is the actual amount an employee receives after all deductions like income tax, provident fund, 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 new regime tax slabs
• PF — Employee's contribution to Provident Fund (typically 12% of basic salary)
• Professional Tax — State-specific tax deducted from salary

3. Components of Salary Calculation

Details: Understanding each component is crucial for accurate salary calculation:

• Gross Salary: Includes basic salary, HRA, allowances, bonuses
• Income Tax: Calculated based on new regime tax slabs
• PF: Employee's contribution to retirement fund
• Professional Tax: Varies by state (typically ₹200-₹250/month)

4. Using the Calculator

Tips:

• Enter annual gross salary (sum of all monthly salaries)
• Input annual income tax amount (as per new regime)
• Include total PF contributions for the year
• Add up all professional tax payments for the year

5. Frequently Asked Questions (FAQ)

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

Q2: How is income tax calculated under new regime?
A: New regime has lower tax rates but fewer deductions. Tax slabs start at 0% for income up to ₹3 lakh, up to 30% for income above ₹15 lakh.

Q3: Is PF contribution mandatory?
A: For organizations with 20+ employees, PF contribution (12% of basic salary) is mandatory for employees earning up to ₹15,000 basic salary.

Q4: Which states have professional tax?
A: Most Indian states have professional tax, with amounts varying from ₹150 to ₹2,500 per year.

Q5: Can I switch between old and new tax regimes?
A: Salaried employees can choose between regimes each financial year, while business professionals must stick to their chosen regime.