1. What is In-Hand Salary?

In-Hand Salary is the actual amount an employee receives after all deductions like income tax, provident fund, and professional tax are subtracted from the gross salary. It represents the net amount deposited in your bank account each month.

2. How Does the Calculator Work?

The calculator uses the following formula:

Where:

• Gross Salary — Total salary before any deductions
• Income Tax — Tax deducted as per income tax slabs
• Provident Fund — Employee's contribution to EPF (typically 12% of basic salary)
• Professional Tax — State-imposed tax on employment (varies by state)

3. Components of Salary Calculation

Details: Understanding salary components is crucial for financial planning. The main deductions include:

• Income Tax (as per applicable tax slabs)
• Employee Provident Fund (EPF) contribution
• Professional Tax (varies by state, typically ₹200-₹250 per month)
• Other possible deductions (not included here) may include health insurance, loan repayments, etc.

4. Using the Calculator

Tips:

• Enter all amounts in INR (Indian Rupees)
• For annual calculations, multiply monthly figures by 12
• Professional tax is typically deducted monthly but can be entered as annual amount
• Ensure all values are positive numbers

5. Frequently Asked Questions (FAQ)

Q1: What's the difference between CTC and in-hand salary?
A: CTC (Cost to Company) includes all benefits (even those not received as cash), while in-hand salary is what you actually receive after deductions.

Q2: How is income tax calculated?
A: Income tax is calculated based on your income slab. Use the latest income tax slabs for accurate calculations.

Q3: Is provident fund contribution fixed?
A: Typically 12% of basic salary, but can vary based on employer policies.

Q4: Do all states have professional tax?
A: Most Indian states have professional tax, but rates vary. Some states may not have it.

Q5: Can this calculator be used for monthly salary?
A: Yes, just enter monthly figures instead of annual ones.