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 have been subtracted from the gross salary.

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 2025 tax brackets
• Provident Fund — Employee's contribution to EPF
• Professional Tax — State-mandated tax on employment

Explanation: The calculation provides the net amount an employee takes home after all mandatory deductions.

3. Importance of Salary Calculation

Details: Understanding your in-hand salary helps in financial planning, budgeting, and ensuring correct salary payments from employers.

4. Using the Calculator

Tips: Enter your gross annual salary and all applicable deductions. The calculator will compute your monthly in-hand salary.

5. Frequently Asked Questions (FAQ)

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

Q2: How is income tax calculated?
A: Based on 2025 tax brackets which consider your income level and applicable deductions.

Q3: Is provident fund mandatory?
A: For organizations with 20+ employees, EPF is mandatory with 12% employee contribution.

Q4: Does professional tax vary by state?
A: Yes, professional tax rates and slabs differ across Indian states.

Q5: Are there other deductions not included here?
A: This calculator covers major deductions, but some organizations may have additional deductions like insurance premiums.