1. What is In-Hand Salary?

In-Hand Salary, also known as Take-Home Salary, is the actual amount of money you receive after all deductions like taxes, provident fund contributions, and professional tax have been subtracted from your gross salary.

2. How Does the Calculator Work?

The calculator uses the following formula:

Where:

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

3. Importance of Salary Calculation

Details: Understanding your in-hand salary helps in financial planning, budgeting, and negotiating better compensation packages. It gives you a clear picture of your actual monthly income after all mandatory deductions.

4. Using the Calculator

Tips: Enter your gross annual salary and all applicable deductions in INR. The calculator will compute your annual in-hand salary. For monthly figures, divide the result by 12.

5. Frequently Asked Questions (FAQ)

Q1: What's the difference between CTC and in-hand salary?
A: CTC (Cost to Company) includes all benefits and bonuses, 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 tax slab rates as per the latest Indian tax laws.

Q3: Is professional tax the same across India?
A: No, professional tax varies by state with different slabs and maximum limits.

Q4: What other deductions might apply?
A: Other deductions may include health insurance, meal coupons, or loan recoveries if applicable.

Q5: How accurate is this calculator?
A: This provides a basic estimate. For precise calculations, consult your payroll department or a tax professional.