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 each month.

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
• PF — Employee's contribution to Provident Fund (typically 12% of basic salary)
• Professional Tax — State-imposed tax on employment (varies by state)

3. Components of Salary Deduction

Details: In India, salary deductions typically include:

• Income Tax (as per applicable tax slabs)
• Employee Provident Fund (EPF) - 12% of basic salary
• Professional Tax (varies by state, typically ₹200-₹250 per month)
• Other deductions like ESIC, TDS, etc. if applicable

4. Using the Calculator

Tips: Enter your annual gross salary and all applicable deductions. The calculator will compute your net in-hand salary. For monthly calculations, divide the result by 12.

5. Frequently Asked Questions (FAQ)

Q1: What's the difference between CTC and in-hand salary?
A: CTC (Cost to Company) includes all benefits (even those not received as cash), while in-hand salary is the actual amount you receive after deductions.

Q2: How is professional tax calculated?
A: Professional tax varies by state in India, typically ranging from ₹200-₹250 per month with an annual cap (usually ₹2,500).

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

Q4: How can I reduce my tax deductions?
A: You can invest in tax-saving instruments under Section 80C (up to ₹1.5 lakh), health insurance under 80D, etc.

Q5: Why is my in-hand salary less than expected?
A: This could be due to higher tax deductions, additional contributions, or loans/advances deducted from salary.