1. What is Monthly In-Hand Salary?

The monthly in-hand salary is the actual amount an employee receives after all deductions like income tax, provident fund (PF), and professional tax. 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-mandated professional tax

Explanation: The formula calculates the net annual salary after all deductions and then divides it 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 your gross annual salary and all deductions in INR. The calculator will compute your monthly in-hand salary. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What's included in gross salary?
A: Gross salary includes basic salary, 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 taxable income and applicable tax slabs as per Indian income tax laws.

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 health insurance, meal coupons, or other voluntary deductions may apply but aren't included in this basic calculation.