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), and professional tax. It represents the net take-home pay.

2. How Does the Calculator Work?

The calculator uses the following formula:

Where:

• Gross Salary — Total salary before any deductions
• Income Tax — Tax as per 2024-25 slabs
• PF — Provident Fund contribution (typically 12% of basic salary)
• Professional Tax — State-specific tax (usually ₹200-₹2,500/year)

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

3. Importance of Salary Calculation

Details: Accurate salary calculation helps employees understand their take-home pay, plan finances, and verify employer deductions.

4. Using the Calculator

Tips: Enter all amounts in INR. For accurate results, use actual deduction values from your payslip or employer.

5. Frequently Asked Questions (FAQ)

Q1: What's included in gross salary?
A: Basic salary, HRA, allowances, bonuses, and other benefits before deductions.

Q2: How is income tax calculated?
A: Based on 2024-25 tax slabs which vary by income level and age (below/above 60 years).

Q3: Is PF mandatory for all employees?
A: PF is mandatory for employees in organizations with 20+ workers (earning up to ₹15,000/month).

Q4: Why does professional tax vary?
A: Professional tax rates differ by state, with maximum annual caps (e.g., ₹2,500 in Maharashtra).

Q5: Are there other deductions not included here?
A: Yes, some employers may deduct for insurance, loans, or other benefits which aren't accounted for in this basic calculator.