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, etc. It represents the net take-home pay.

2. New vs Old Tax Regime

The Indian government introduced a new tax regime with lower rates but fewer deductions. Key differences:

2023-24 Tax Slabs (New Regime):

• 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%

3. How the Calculator Works

Formula: In-Hand Salary = Gross Salary - Income Tax - PF - Professional Tax

The calculator computes taxes under both regimes (if selected) and shows the net take-home pay after all standard deductions.

4. Using the Calculator

Steps: Enter your gross annual salary, select tax regime (or compare both), input PF and professional tax amounts. Default values are provided for standard contributions.

5. Frequently Asked Questions (FAQ)

Q1: Which regime is better for me?
A: The new regime typically benefits those with fewer investments/deductions. Higher earners with substantial deductions may benefit from the old regime.

Q2: Are PF and professional tax mandatory?
A: PF is mandatory for most salaried employees (12% of basic salary). Professional tax varies by state (typically ₹200/month).

Q3: What's not included in this calculation?
A: This doesn't account for special deductions (HRA, LTA), surcharges for very high incomes, or other voluntary deductions.

Q4: Can I switch regimes every year?
A: Yes, salaried employees can choose their regime each year. Business/professionals must typically stick with their choice.

Q5: How accurate is this calculator?
A: It provides a good estimate but consult a tax professional for precise calculations considering all your specific deductions.