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, professional tax, etc. It represents the net amount deposited in your bank account.

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 2025 tax brackets
• Provident Fund — Employee's contribution to EPF
• Professional Tax — State-mandated tax on employment

Explanation: The calculation accounts for all mandatory deductions from your gross salary to give you the actual take-home amount.

3. Importance of Salary Calculation

Details: Understanding your in-hand salary helps in financial planning, loan applications, and budgeting. It ensures you know exactly how much you'll receive after all deductions.

4. Using the Calculator

Tips: Enter your gross annual salary and all applicable deductions in INR. The calculator will compute your net take-home salary for 2025.

5. Frequently Asked Questions (FAQ)

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

Q2: Are there other deductions not included here?
A: This calculator includes major deductions. Some companies may have additional deductions like insurance premiums or loan repayments.

Q3: How often is professional tax deducted?
A: Professional tax is typically deducted monthly, with rates varying by state in India.

Q4: Is PF contribution mandatory?
A: For organizations with 20+ employees, EPF contribution (12% of basic salary) is mandatory.

Q5: How accurate is this calculator for 2025?
A: It uses current tax structures. For precise calculations, consult your HR department as tax laws may change.