1. What is In-Hand Salary?

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

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 new regime slabs
• \( PF \) — Employee's Provident Fund contribution
• \( Professional\ Tax \) — State-specific professional tax

3. New Tax Regime Slabs (2023-24)

Tax Slabs:

• Up to ₹3,00,000: Nil
• ₹3,00,001-₹6,00,000: 5%
• ₹6,00,001-₹9,00,000: 10%
• ₹9,00,001-₹12,00,000: 15%
• ₹12,00,001-₹15,00,000: 20%
• Above ₹15,00,000: 30%

4. Using the Calculator

Instructions: Enter your gross annual salary, PF contribution (if any), and professional tax (if known). The calculator will compute your in-hand salary after tax deductions under the new regime.

5. Frequently Asked Questions (FAQ)

Q1: Should I choose old or new tax regime?
A: The new regime has lower rates but fewer deductions. Compare both options based on your investments and deductions.

Q2: Is PF contribution mandatory?
A: For organizations with 20+ employees, PF is mandatory for those earning up to ₹15,000/month. Others may have voluntary PF.

Q3: What is professional tax?
A: A state-level tax on employment, typically ₹200-₹2,500/year depending on the state and salary.

Q4: Are there other deductions not considered here?
A: Yes, this calculator doesn't account for health insurance, NPS, or other voluntary deductions that might reduce taxable income under old regime.

Q5: How accurate is this calculator?
A: It provides estimates based on standard tax slabs. Actual salary may vary based on specific employer policies and additional deductions.