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's also known as take-home salary.

2. How Does the Calculator Work?

The calculator uses the following formula:

Where:

• Gross Salary — Total salary before any deductions
• Income Tax — Calculated based on Indian tax slabs
• PF — 12% of basic salary (Employee contribution)
• Professional Tax — Varies by state (₹0-₹2,500/month)

3. Components of Salary Deduction

Income Tax: Calculated based on progressive tax slabs with rebates for incomes below ₹5 lakh.
Provident Fund (PF): Mandatory 12% of basic salary contribution towards retirement fund.
Professional Tax: State-specific tax deducted monthly (maximum ₹2,500/year in most states).

4. Using the Calculator

Tips: Enter your gross annual salary, basic salary, select your state, and age. The calculator will estimate your in-hand salary after all standard deductions.

5. Frequently Asked Questions (FAQ)

Q1: Why is my in-hand salary less than gross salary?
A: Your employer deducts income tax, PF, professional tax, and possibly other deductions before paying your salary.

Q2: How can I increase my in-hand salary?
A: You can invest in tax-saving instruments (80C), claim HRA exemption, or opt for tax-friendly salary structures.

Q3: Is professional tax deducted every month?
A: Yes, but the amount varies by state and is usually deducted only from those earning above a threshold.

Q4: What's the difference between gross and basic salary?
A: Basic salary is a fixed component (40-50% of gross), while gross includes all allowances and bonuses.

Q5: Are there other deductions not included here?
A: This calculator covers standard deductions. Your employer may deduct for insurance, loans, or other benefits.