Home
Back
Salary Calculation Formula:
| From: | To: |
Take home salary, also known as in-hand salary, is the amount an employee receives after all deductions like taxes, provident fund, professional tax, etc. have been subtracted from the gross salary.
The calculator uses the following formula:
Where:
Income Tax: Calculated based on annual income tax slabs in India. The calculator allows you to input your calculated tax amount.
Provident Fund (PF): Typically 12% of basic salary, contributed by the employee (with matching employer contribution).
Professional Tax: Varies by state in India, typically ranges from ₹0 to ₹2,500 per year depending on the state and salary level.
Tips: Enter your gross annual salary in INR, followed by your calculated income tax, PF contribution, and professional tax amounts. The calculator will compute your annual take-home salary.
Q1: How accurate is this calculator?
A: The calculator provides an estimate based on your inputs. For precise calculations, consult your payroll department or a tax professional.
Q2: What's included in gross salary?
A: Gross salary typically includes basic pay, dearness allowance, house rent allowance, and other special allowances.
Q3: How is income tax calculated?
A: Income tax is calculated based on the applicable tax slabs for the financial year, after considering deductions under various sections.
Q4: Can I use this for monthly calculations?
A: Yes, you can input monthly figures and multiply the result by 12, or divide annual figures by 12 for monthly equivalents.
Q5: Are there other deductions not included here?
A: Yes, some employers may deduct for health insurance, meal coupons, or other benefits which aren't accounted for in this basic calculator.