1. What is In-Hand Salary Calculation?

The in-hand salary is the actual amount an employee receives after all deductions like income tax, provident fund (PF), and professional tax have been subtracted from the gross salary. It represents the net take-home pay.

2. How Does the Calculator Work?

The calculator uses the following formula:

Where:

• Gross Salary — Total salary before any deductions (₹/year)
• Income Tax — Tax deducted as per income tax slabs (₹)
• PF — Provident Fund contribution (₹)
• Professional Tax — State-imposed professional tax (₹)

Explanation: This calculation provides the net amount an employee receives in their bank account after all mandatory deductions.

3. Importance of Salary Calculation

Details: Understanding salary breakdown helps employees plan finances, negotiate better packages, and ensure correct tax deductions. Employers use this for payroll processing and compliance.

4. Using the Calculator

Tips: Enter all values in Indian Rupees (₹). Gross salary should be annual amount. Deductions should be either monthly (multiplied by 12) or annual values.

5. Frequently Asked Questions (FAQ)

Q1: What's included in gross salary?
A: Basic salary, HRA, allowances, bonuses, and other benefits before any deductions.

Q2: How is income tax calculated?
A: Based on current tax slabs. For FY 2023-24, no tax for income up to ₹2.5 lakh, 5% for ₹2.5-5 lakh, etc.

Q3: What is the PF contribution rate?
A: Typically 12% of basic salary from employee and 12% from employer, but only employee's contribution is deducted here.

Q4: Does professional tax vary?
A: Yes, each Indian state sets its own professional tax rates, typically ₹200-300/month.

Q5: Are there other deductions?
A: This calculator covers major deductions. Others may include ESIC, loan repayments, or voluntary deductions.