1. What is In-Hand Salary?

In-Hand Salary, also known as Take-Home Salary, is the amount an employee actually receives after all deductions like taxes, provident fund, professional tax, etc. have been subtracted 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
• PF — Provident Fund contribution
• Professional Tax — State-imposed professional tax

Explanation: This calculation gives you the actual amount you receive in your bank account after all mandatory deductions.

3. Importance of Salary Calculation

Details: Understanding your in-hand salary helps in financial planning, budgeting, and comparing job offers. It's crucial to know how much you'll actually receive after all deductions.

4. Using the Calculator

Tips: Enter your gross annual salary and all deduction amounts in INR. The calculator will show your annual in-hand salary. Divide by 12 for monthly amount.

5. Frequently Asked Questions (FAQ)

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

Q2: Are there other deductions not included here?
A: Yes, some companies may have other deductions like insurance premiums, loan repayments, or voluntary contributions.

Q3: How is income tax calculated?
A: Income tax is calculated based on government-defined slabs and varies depending on your income level and tax-saving investments.

Q4: Is professional tax the same across India?
A: No, professional tax varies by state and is usually a small amount deducted monthly.

Q5: Can PF be excluded from deductions?
A: PF is mandatory for most salaried employees in India, though some categories may be exempt.