1. What is Monthly In-Hand Salary?

The monthly in-hand salary is the actual amount an employee receives after all deductions like income tax, provident fund (PF), and professional tax. It represents the net amount credited to your bank account each month.

2. How Does the Calculator Work?

The calculator uses the following formula:

Where:

• Gross Salary — Total annual salary before any deductions
• Income Tax — Total annual tax deducted at source (TDS)
• PF — Provident Fund contribution for the year
• Professional Tax — Annual professional tax (varies by state)

Explanation: The formula calculates the net annual salary after deductions and then divides by 12 to get the monthly amount.

3. Importance of Salary Calculation

Details: Understanding your in-hand salary helps in financial planning, loan applications, and comparing job offers. It gives a clear picture of your actual monthly earnings.

4. Using the Calculator

Tips: Enter all values in INR (Indian Rupees). Ensure you have accurate figures for all deductions to get precise results. The calculator assumes equal deductions each month.

5. Frequently Asked Questions (FAQ)

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

Q2: Are there other deductions not included here?
A: Yes, this calculator covers major deductions but some companies may have additional deductions like insurance, ESIC, or loan recoveries.

Q3: How accurate is this calculator?
A: It provides a basic estimate. For exact figures, consult your salary slip or HR department as deductions may vary month-to-month.

Q4: Why is professional tax deducted?
A: Professional tax is a state-level tax on employment. Rates vary by state and are typically capped at ₹2,500 annually.

Q5: Can I use this for freelance income?
A: No, this is designed for regular employment with standard deductions. Freelancers have different tax calculations.