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, etc. It represents the net amount credited to your bank account.

2. How Does the Calculator Work?

The calculator uses the following formula:

Where:

• \( \text{Gross Salary} \) — Total salary before any deductions
• \( \text{Income Tax} \) — Calculated as per AY 2023-24 tax slabs
• \( \text{PF} \) — 12% of basic salary
• \( \text{Professional Tax} \) — Varies by state (typically ₹200/month)

3. Components of Salary Calculation

Income Tax: Calculated as per AY 2023-24 slabs with standard deduction of ₹50,000.

Provident Fund (PF): 12% of basic salary (employee contribution).

Professional Tax: Deducted monthly (varies by state, default ₹200/month).

4. Using the Calculator

Tips: Enter your annual gross salary and basic salary. Professional tax is set to ₹200/month by default (can be changed). All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What is the difference between gross and basic salary?
A: Gross salary is total salary before deductions. Basic salary is a fixed component (usually 40-50% of gross) used for PF calculations.

Q2: Are there any tax exemptions considered?
A: This calculator considers standard deduction of ₹50,000. Other exemptions (HRA, 80C etc.) can be accounted for by reducing gross salary accordingly.

Q3: Why is PF calculated only on basic salary?
A: As per Indian PF rules, employee contribution is 12% of basic salary plus dearness allowance (if any).

Q4: Does professional tax vary by state?
A: Yes, professional tax rates vary by state. The default ₹200/month covers most states' maximum rates.

Q5: Is this calculator accurate for all cases?
A: This provides an estimate. Actual salary may vary based on additional deductions, exemptions, and specific company policies.