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), professional tax, etc. It represents the net amount credited to your bank account each month.

2. How Does the Calculator Work?

The calculator uses the following formula:

Where:

• Gross Salary — Total salary before any deductions
• Income Tax — Calculated based on new tax regime slabs
• PF — Employee's contribution to Provident Fund (typically 12% of basic salary)
• Professional Tax — State-specific tax deducted from salary (varies by state)

3. New Tax Regime Details

Tax Slabs for FY 2023-24 (New Regime):

• Up to ₹2.5 lakh: Nil
• ₹2.5-5 lakh: 5%
• ₹5-7.5 lakh: 10%
• ₹7.5-10 lakh: 15%
• ₹10-12.5 lakh: 20%
• ₹12.5-15 lakh: 25%
• Above ₹15 lakh: 30%

4. Using the Calculator

Tips: Enter your annual gross salary in INR. Include PF contribution and professional tax if known. For monthly salary, multiply by 12 before entering.

5. Frequently Asked Questions (FAQ)

Q1: What's the difference between old and new tax regimes?
A: New regime has lower tax rates but fewer deductions. Old regime allows more deductions but has higher rates.

Q2: Is PF contribution mandatory?
A: For organizations with 20+ employees, PF contribution (12% of basic salary) is mandatory.

Q3: How is professional tax calculated?
A: Varies by state, typically ₹200-300/month. Maximum annual professional tax is ₹2,500 in most states.

Q4: Should I choose new or old tax regime?
A: Depends on your investments and deductions. New regime benefits those with few investments/deductions.

Q5: Are there other deductions not considered here?
A: Yes, deductions like health insurance, HRA, LTA etc. are not considered in this new regime calculation.