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-level tax on employment (varies by state)

3. Components of Salary Deduction

Income Tax: Calculated based on your income tax slab rates. Most employees fall under TDS (Tax Deducted at Source) regime.
Provident Fund: Typically 12% of basic salary, contributed to employee's EPF account.
Professional Tax: Varies by state (typically ₹200-₹250 per month in most states).
Other Deductions: May include insurance premiums, loan repayments, etc.

4. Using the Calculator

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

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 can I reduce my tax deductions?
A: You can invest in tax-saving instruments under Section 80C (up to ₹1.5 lakh), claim HRA exemption, medical insurance under 80D, etc.

Q3: Is professional tax the same across India?
A: No, professional tax rates vary by state. Some states like Karnataka deduct ₹200/month, while others may have different rates.

Q4: Why is my in-hand salary less than my CTC?
A: CTC (Cost to Company) includes many components that aren't part of your take-home salary, like employer PF contributions, gratuity, bonuses, etc.

Q5: How often is PF deducted?
A: PF is deducted every month from your salary (typically 12% of basic salary) and matched by your employer.