1. What is In-Hand Salary?

In-Hand Salary (or Take-Home Salary) is the actual amount you receive after all deductions like income tax, provident fund (PF), professional tax, and other deductions from your gross salary.

2. How Does the Calculator Work?

The calculator uses the following formula:

Where:

• Gross Salary — Your total salary before any deductions
• Income Tax — Tax deducted as per your income tax slab
• PF — Provident Fund contribution (typically 12% of basic salary)
• Professional Tax — State-specific tax (usually up to ₹2,500/year)

Explanation: This calculation gives you the net amount you'll receive in your bank account after all mandatory deductions.

3. Importance of Salary Calculation

Details: Understanding your in-hand salary helps in financial planning, loan applications, and budgeting. It's crucial to 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 monthly in-hand salary.

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: How is income tax calculated?
A: Income tax is calculated based on your income tax slab rates as per the latest budget. It typically ranges from 0% to 30% of taxable income.

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: Does professional tax vary by state?
A: Yes, professional tax rates vary by state in India, typically ranging from ₹0 to ₹2,500 per year.

Q5: Are there other deductions not included here?
A: Yes, there might be other deductions like ESIC, TDS, loan EMIs, or insurance premiums that aren't included in this basic calculation.