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 (PF), professional tax, etc. It represents the net amount credited to 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 your tax slab
• PF — Employee's contribution to Provident Fund (typically 12% of basic salary)
• Professional Tax — State-specific tax (usually up to ₹2,500/year)

3. Importance of Salary Calculation

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

4. Using the Calculator

Tips: Enter your annual gross salary and all deductions in INR. The calculator will show both annual and monthly in-hand salary amounts.

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, there might be other deductions like health insurance, loan repayments, or voluntary contributions that aren't included in this basic calculation.

Q3: How is income tax calculated?
A: Income tax is calculated based on your income slab under the old or new tax regime. This calculator lets you input your total tax amount directly.

Q4: Is PF always 12% of basic salary?
A: Typically yes, but some organizations might have different PF contribution structures.

Q5: Does professional tax vary by state?
A: Yes, professional tax rates vary across different Indian states, with maximum amounts typically around ₹2,500 per year.