1. What is the Salary Calculation?

The salary calculator estimates your in-hand salary after deducting income tax, provident fund (PF), and professional tax based on Indian tax laws and employment regulations.

2. How Does the Calculator Work?

The calculator uses the following formula:

Where:

• Gross Salary — Your total salary before deductions
• Income Tax — Calculated based on selected tax regime
• PF — 12% of basic salary (employee contribution)
• Professional Tax — State-mandated tax (example: ₹2,500/year)

Explanation: The calculation accounts for mandatory deductions to give you an estimate of your take-home pay.

3. Importance of Salary Calculation

Details: Understanding your in-hand salary helps with financial planning, budgeting, and comparing job offers. It also helps you understand how much goes toward taxes and other deductions.

4. Using the Calculator

Tips: Enter your gross annual salary and basic salary (for PF calculation). Select your preferred tax regime (new or old). The calculator will estimate your annual and monthly in-hand salary.

5. Frequently Asked Questions (FAQ)

Q1: What's the difference between gross and basic salary?
A: Gross salary is your total salary before deductions. Basic salary is a component of gross salary used to calculate PF and other benefits.

Q2: Which tax regime should I choose?
A: The new regime has higher basic exemption but fewer deductions. The old regime may be better if you have significant deductions (HRA, LTA, etc.).

Q3: Is PF calculated on basic salary or gross salary?
A: PF is calculated as 12% of basic salary (plus DA if applicable), not gross salary.

Q4: Does this calculator include all deductions?
A: This is a simplified calculator. Actual salary may include other deductions like ESIC, pension contributions, etc.

Q5: How accurate is the tax calculation?
A: This provides an estimate. Actual tax liability depends on various factors including investments, exemptions, and surcharges.