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, and other statutory deductions 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 — Employee's contribution to Provident Fund
• Professional Tax — State-level tax on employment

Explanation: The formula subtracts all mandatory deductions from the gross salary to arrive at the net amount received by the employee.

3. Importance of Salary Calculation

Details: Understanding in-hand salary helps in financial planning, loan applications, and comparing job offers. It's crucial for employees to know their take-home pay after all statutory deductions.

4. Using the Calculator

Tips: Enter all amounts in INR. Gross salary should be your annual CTC (Cost to Company) or gross salary. Other fields should contain the annual amounts deducted for each category.

5. Frequently Asked Questions (FAQ)

Q1: What's the difference between CTC and in-hand salary?
A: CTC includes all benefits and deductions, while in-hand salary is what you actually receive after all deductions.

Q2: Are there other deductions not included here?
A: Yes, some companies may deduct for health insurance, ESIC, or other benefits which aren't accounted for in this basic calculator.

Q3: How is income tax calculated?
A: Income tax is calculated based on government-defined slabs and may vary based on investments and deductions claimed.

Q4: Is professional tax the same across India?
A: No, professional tax rates vary by state and are typically deducted monthly with an annual cap.

Q5: Can I use this for monthly salary calculation?
A: Yes, but ensure all amounts entered are for the same period (either all monthly or all annual figures).