1. What is In-Hand Salary?

In-Hand Salary is the actual amount an employee receives after all deductions like income tax, provident fund, professional tax, and other deductions 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
• Provident Fund — Employee's contribution to EPF
• Professional Tax — State-imposed tax on employment

Explanation: This calculation gives you the net amount that will be credited to your bank account each pay period.

3. Importance of Salary Calculation

Details: Understanding your in-hand salary helps in financial planning, budgeting, and ensuring you're being paid correctly according to your employment terms.

4. Using the Calculator

Tips: Enter your gross annual salary and all applicable deductions in INR. The calculator will compute your annual in-hand salary.

5. Frequently Asked Questions (FAQ)

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

Q2: Are there other deductions not included here?
A: Yes, some employers may deduct for health insurance, loan repayments, or other benefits which aren't accounted for in this basic calculator.

Q3: How often is professional tax deducted?
A: Professional tax is typically deducted monthly, though the amount varies by state in India.

Q4: Is PF contribution mandatory?
A: For organizations with 20+ employees, EPF contribution is mandatory for employees earning up to ₹15,000 per month.

Q5: How can I reduce my tax deductions?
A: Investing in tax-saving instruments under Section 80C (like PPF, ELSS) can reduce your taxable income.