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 (PF), and professional tax have been subtracted from the gross salary.

2. How Does the Calculator Work?

The calculator uses the following formula:

Where:

• Gross Salary — Total salary before any deductions
• Income Tax — Tax deducted as per income tax slabs
• PF — Provident Fund contribution (typically 12% of basic salary)
• Professional Tax — State-level tax on employment

3. Importance of Salary Calculation

Details: Understanding your in-hand salary helps in financial planning, loan applications, and budgeting. It's crucial to know exactly how much you'll receive after all mandatory deductions.

4. Using the Calculator

Tips: Enter your gross annual salary in INR, followed by estimated income tax, PF contributions, and professional tax amounts. The calculator will compute your take-home salary.

5. Frequently Asked Questions (FAQ)

Q1: What is the difference between gross and net salary?
A: Gross salary is your total salary before deductions, while net salary (in-hand salary) is what you actually receive after all deductions.

Q2: How is income tax calculated?
A: Income tax is calculated based on government-defined tax slabs that vary according to your income level and age.

Q3: Is PF contribution mandatory?
A: For organizations with 20+ employees, PF contribution is mandatory for employees earning up to ₹15,000 per month.

Q4: Does professional tax vary by state?
A: Yes, professional tax rates and slabs differ across Indian states, with maximum typically being ₹2,500 per year.

Q5: Are there other deductions not included here?
A: This calculator covers major deductions, but your employer might deduct other amounts like insurance premiums or loan repayments.