1. What is Net Salary Calculation?

Net salary (in-hand salary) is the amount an employee takes home after all deductions like income tax, provident fund (PF), professional tax, etc. are subtracted from the gross salary.

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 income tax slabs
• PF — Provident Fund contribution (typically 12% of basic salary)
• Professional Tax — State-level tax on employment

Explanation: The calculation gives the actual amount that will be credited to your bank account after all mandatory deductions.

3. Importance of Net Salary Calculation

Details: Understanding net salary helps in financial planning, budgeting, and comparing job offers. It shows your actual take-home pay after all deductions.

4. Using the Calculator

Tips: Enter your gross annual salary and all applicable deductions in INR. The calculator will show your annual net salary which you can divide by 12 for monthly in-hand salary.

5. Frequently Asked Questions (FAQ)

Q1: What's the difference between gross and net salary?
A: Gross salary is your total salary before deductions, while net salary is what you actually receive after all deductions.

Q2: How is income tax calculated?
A: Income tax is calculated based on your income slab as per the latest tax regime or old regime (whichever you choose).

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 basic salary.

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: This calculator includes major deductions. Others like ESIC, voluntary deductions, loan EMIs, etc. would need to be added separately.