1. What is In-Hand Salary?

In-Hand Salary is the actual amount an employee takes home after all deductions like income tax, provident fund, 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 (INR/year)
• Income Tax — Tax deducted as per Indian income tax slabs (INR)
• Provident Fund — Typically 12% of basic salary (INR)
• Professional Tax — State-specific tax, usually up to ₹2,500/year (INR)

3. Importance of Salary Calculation

Details: Understanding your in-hand salary helps in financial planning, loan applications, and budgeting. It clarifies how much of your gross salary actually reaches you after mandatory deductions.

4. Using the Calculator

Tips: Enter your annual gross salary and all applicable deductions. For accurate results, use actual deduction values from your payslip or consult your HR department.

5. Frequently Asked Questions (FAQ)

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

Q2: How is income tax calculated in India?
A: Under new regime (FY 2023-24), 0% tax up to ₹3 lakh, 5% for ₹3-6 lakh, 10% for ₹6-9 lakh, etc. Old regime has different slabs with more deductions.

Q3: Is PF always 12% of basic salary?
A: Typically yes, but some organizations might have different PF contribution structures.

Q4: Do all states have professional tax?
A: Most states do, but rates vary. Some states like Delhi don't have professional tax.

Q5: What other deductions might apply?
A: Other deductions could include health insurance, meal coupons, loan repayments, or voluntary contributions to NPS.