Per Month Salary Calculator India

Monthly In-Hand Salary Formula:

\[ \text{Monthly In-Hand Salary} = \frac{\text{Gross Salary} - \text{Income Tax} - \text{Provident Fund} - \text{Professional Tax}}{12} \]

Gross Salary (INR/year):

INR

Income Tax (INR):

INR

Provident Fund (INR):

INR

Professional Tax (INR):

INR

Monthly In-Hand Salary:

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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, 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:

\[ \text{Monthly In-Hand Salary} = \frac{\text{Gross Salary} - \text{Income Tax} - \text{Provident Fund} - \text{Professional Tax}}{12} \]

Where:

Gross Salary — Total annual salary before any deductions (INR)
Income Tax — Total annual tax deducted at source (TDS) (INR)
Provident Fund — Employee's contribution to EPF (INR)
Professional Tax — State-specific professional tax (INR)

Explanation: The formula calculates the monthly net salary by subtracting all annual deductions from the gross salary and dividing by 12 months.

3. Importance of Salary Calculation

Details: Understanding your in-hand salary helps in financial planning, budgeting, loan applications, and tax planning. It gives a clear picture of your actual monthly income after all mandatory deductions.

4. Using the Calculator

Tips: Enter your total annual gross salary and all annual deductions in INR. The calculator will compute your average monthly in-hand salary. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

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

Q2: Are bonuses included in gross salary?
A: Yes, if your gross salary includes annual bonuses or other variable pay, they should be included in the gross salary amount.

Q3: How is professional tax calculated?
A: Professional tax varies by state in India, typically ranging from ₹0 to ₹2,500 per year. Check your state's tax slabs for exact amounts.

Q4: What if my deductions vary each month?
A: This calculator provides an average monthly amount. For precise monthly calculations, you would need month-specific deduction amounts.

Q5: Does this include other deductions like health insurance?
A: No, this calculator only accounts for standard deductions. Add any other regular deductions to the professional tax field if needed.