1. What is In-Hand Salary?

In-Hand Salary is the net amount an employee receives after all deductions like income tax, provident fund, and professional tax have been subtracted from the gross salary. It represents the actual take-home pay.

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
• Professional Tax — State-imposed tax on employment

Explanation: The formula accounts for all mandatory deductions that reduce an employee's gross salary to arrive at the net amount received.

3. Importance of Salary Calculation

Details: Accurate salary calculation helps employees understand their compensation structure, plan finances, and verify payroll accuracy.

4. Using the Calculator

Tips: Enter all values in INR. For accurate results, use actual deduction amounts from your payslip or employer's calculations.

5. Frequently Asked Questions (FAQ)

Q1: What's included in gross salary?
A: Gross salary typically includes basic pay, allowances (HRA, DA, etc.), bonuses, and other benefits before any deductions.

Q2: How is income tax calculated?
A: Income tax is calculated based on government-defined slabs and may include various exemptions and deductions.

Q3: Is provident fund contribution fixed?
A: EPF contribution is typically 12% of basic salary, but this may vary based on employer policies.

Q4: Does professional tax vary?
A: Yes, professional tax rates vary by state and are usually deducted monthly with an annual cap.

Q5: Are there other deductions not included here?
A: This calculator covers major deductions, but some employers may have additional deductions like health insurance or loan recoveries.