1. What is In-Hand Salary?

In-Hand Salary is the actual amount an employee receives after all deductions like income tax, provident fund (PF), professional tax, etc. It's the net amount credited to your bank account.

2. How Does the Calculator Work?

The calculator uses the simple formula:

Where:

• Gross Salary — Total salary before any deductions
• Income Tax — Tax deducted as per income tax slabs
• PF — Employee's contribution to Provident Fund (typically 12% of basic salary)
• Professional Tax — State-specific tax deducted from salary

3. Importance of Salary Calculation

Details: Understanding your in-hand salary helps in financial planning, loan applications, and comparing job offers. It gives you a clear picture of your actual take-home pay.

4. Using the Calculator

Tips: Enter your gross annual salary and all applicable deductions. The calculator will show your estimated in-hand salary. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

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

Q2: How is PF calculated?
A: Typically 12% of your basic salary goes to PF. Some companies may have different PF contribution structures.

Q3: Is professional tax the same across India?
A: No, professional tax varies by state and is capped at ₹2,500 per year in most states.

Q4: Are there other deductions not included here?
A: Yes, some companies may deduct for health insurance, meal coupons, or other benefits which aren't included in this basic calculation.

Q5: How accurate is this calculator?
A: This provides a basic estimate. For precise calculations, consult your payroll department as deductions may vary based on company policies and additional factors.