1. What is Monthly In-Hand Salary?

Monthly in-hand salary is the actual amount an employee receives after all deductions like income tax, provident fund (PF), professional tax, and other statutory deductions. It's the net amount credited to your bank account each month.

2. How Does the Calculator Work?

The calculator uses the following formula:

Where:

• Gross Salary — Total annual salary before any deductions
• Income Tax — Total annual tax deducted at source (TDS)
• PF — Employee's contribution to Provident Fund
• Professional Tax — State-level tax on employment

Explanation: The formula calculates the net annual salary after all deductions and then divides by 12 to get the monthly amount.

3. Importance of Salary Calculation

Details: Understanding your in-hand salary helps in financial planning, loan applications, and budgeting. It gives a clear picture of your actual take-home pay after all mandatory deductions.

4. Using the Calculator

Tips: Enter all amounts in INR (Indian Rupees). Gross salary should be your annual CTC (Cost to Company) or gross salary before any deductions. Other fields should contain the annual totals of each deduction.

5. Frequently Asked Questions (FAQ)

Q1: What's the difference between CTC and in-hand salary?
A: CTC includes all benefits and deductions, while in-hand salary is what you actually receive after all deductions.

Q2: Are there other deductions not included here?
A: Yes, deductions like ESIC, voluntary PF, loan repayments, or insurance premiums may also apply depending on your employment terms.

Q3: How is professional tax calculated?
A: Professional tax varies by state in India, typically ranging from ₹0 to ₹2,500 per year, deducted monthly.

Q4: Is PF contribution fixed?
A: Typically 12% of basic salary, but may vary based on company policy and employee choice.

Q5: Can I use this for freelance income?
A: No, this calculator is designed for salaried employees with regular deductions. Freelancers have different tax calculations.