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 represents the net amount 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
• \( Income\ Tax \) — Calculated based on new tax regime slabs
• \( Provident\ Fund \) — Employee's PF contribution (typically 12% of basic salary)
• \( Professional\ Tax \) — State-specific tax (typically ₹200-₹300 per month)

3. New Tax Regime Details

New Tax Regime Slabs (FY 2023-24):

• Up to ₹3 lakh: 0%
• ₹3-6 lakh: 5%
• ₹6-9 lakh: 10%
• ₹9-12 lakh: 15%
• ₹12-15 lakh: 20%
• Above ₹15 lakh: 30%

4. Using the Calculator

Tips: Enter your annual gross salary in INR, provident fund deduction, and professional tax. The calculator will compute your income tax under new regime and final in-hand salary.

5. Frequently Asked Questions (FAQ)

Q1: Should I choose old or new tax regime?
A: New regime has lower rates but fewer deductions. Choose based on which gives you better tax savings.

Q2: Is PF included in gross salary?
A: Yes, PF is part of gross salary but deducted later to arrive at net salary.

Q3: How is professional tax calculated?
A: It's state-specific, typically ₹200/month (₹2,400/year) but varies by state and salary level.

Q4: Are there any standard deductions in new regime?
A: Only standard deduction of ₹50,000 is available in new regime.

Q5: Can I switch between tax regimes?
A: Salaried employees can choose each year, while business/professionals must stick to their choice.