1. What is In-Hand Salary?

In-Hand Salary is the actual amount an employee receives after all deductions like income tax, provident fund (PF), professional tax, etc. It represents the net amount credited to your bank account each month.

2. How Does the Calculator Work?

The calculator uses the formula:

Where:

• \( Gross\ Salary \) — Total salary before any deductions
• \( Income\ Tax \) — Calculated under new tax regime slabs
• \( PF \) — Employee's provident fund contribution
• \( Professional\ Tax \) — State-mandated professional tax

3. New Tax Regime Explained

Details: The new tax regime offers lower tax rates but removes most deductions and exemptions. Tax slabs for FY 2023-24:

• Up to ₹3 lakh: 0%
• ₹3-6 lakh: 5%
• ₹6-9 lakh: 10%
• ₹9-12 lakh: 15%
• ₹12-15 lakh: 20%
• Above ₹15 lakh: 30%

4. Using the Calculator

Tips: Enter your annual gross salary, PF contribution (if any), and professional tax (varies by state). The calculator will show your tax liability and net in-hand salary.

5. Frequently Asked Questions (FAQ)

Q1: Should I choose new or old tax regime?
A: New regime benefits those with fewer investments/deductions. Compare both options before deciding.

Q2: Is PF mandatory in salary calculation?
A: For organizations with 20+ employees, PF is mandatory for those earning up to ₹15,000/month.

Q3: How is professional tax calculated?
A: Varies by state, typically ₹200-₹2,500/year. Maharashtra deducts ₹2,500/year for salaries above ₹10,000/month.

Q4: Are there any standard deductions in new regime?
A: Only standard deduction of ₹50,000 is available for salaried individuals in new regime.

Q5: Does this include employer's PF contribution?
A: No, this calculator only considers employee's PF contribution which is deducted from salary.