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. This calculator helps estimate your take-home pay in India.

2. How Does the Calculator Work?

The calculator uses the following formula:

Where:

• \( \text{Gross Salary} \) — Total salary before any deductions (INR/year)
• \( \text{Income Tax} \) — Tax deducted as per income tax slabs (INR)
• \( \text{PF} \) — Employee's contribution to Provident Fund (INR)
• \( \text{Professional Tax} \) — State-mandated professional tax (INR)

Explanation: The calculation subtracts all mandatory deductions from the gross salary to arrive at the net amount received by the employee.

3. Importance of Salary Calculation

Details: Understanding salary breakdown helps in financial planning, loan applications, and ensuring correct salary payments. It also helps compare job offers accurately.

4. Using the Calculator

Tips: Enter your gross annual salary and all applicable deductions. For accurate results, use values from your salary slip or employer's calculations.

5. Frequently Asked Questions (FAQ)

Q1: What's included in gross salary?
A: Gross salary includes basic pay, allowances (HRA, DA, etc.), bonuses, and other benefits before any deductions.

Q2: How is income tax calculated?
A: Income tax is calculated based on your income slab under the old or new tax regime as chosen by you.

Q3: Is PF contribution mandatory?
A: For organizations with 20+ employees, PF contribution (12% of basic salary) is mandatory for employees earning up to ₹15,000/month.

Q4: What is professional tax?
A: Professional tax is a state-level tax on employment, with maximum of ₹2,500/year (varies by state).

Q5: Are there other deductions not included here?
A: Yes, deductions like ESIC, voluntary PF, loan repayments, etc. may also apply depending on your situation.