1. What is Net Income Calculation?

The net income calculation determines your take-home pay after deducting all mandatory deductions like income tax, provident fund (PF), and professional tax from your gross salary.

2. How Does the Calculator Work?

The calculator uses the following formula:

Where:

• Gross Salary — Your total salary before any deductions
• Income Tax — Tax deducted as per your tax slab
• PF — Provident Fund contribution (typically 12% of basic salary)
• Professional Tax — State-mandated tax on employment

3. Importance of Net Income Calculation

Details: Understanding your net income helps in financial planning, budgeting, and knowing your actual disposable income after all statutory deductions.

4. Using the Calculator

Tips: Enter all values in INR. For accurate results, use your actual tax and deduction amounts from your payslip or tax statement.

5. Frequently Asked Questions (FAQ)

Q1: What's the difference between gross and net salary?
A: Gross salary is your total earnings before deductions, while net salary is what you actually receive after all deductions.

Q2: Is PF always 12% of salary?
A: Typically yes, but it's 12% of basic salary (not necessarily total salary) and may vary in some cases.

Q3: How is professional tax calculated?
A: It varies by state in India, typically ranging from ₹200-₹2,500 per year, deducted monthly.

Q4: Are there other deductions not included here?
A: Yes, some employers may deduct for health insurance, ESIC, or other benefits which aren't included in this basic calculation.

Q5: Can I use this for freelance income?
A: No, this calculator is designed for salaried employees with standard deductions. Freelancers have different tax calculations.