1. What is Monthly In-Hand Salary?

The monthly in-hand salary is the actual amount an employee receives after all deductions like income tax, provident fund, and professional tax. It represents the net amount credited to your bank account each month.

2. How Does the Calculator Work?

The calculator uses the following formula:

Where:

• Gross Salary — Total annual salary before any deductions (INR)
• Income Tax — Total annual tax deducted at source (INR)
• Provident Fund — Employee's contribution to EPF (INR)
• Professional Tax — State-mandated professional tax (INR)

Explanation: The formula subtracts all annual deductions from gross salary and divides by 12 to get the monthly amount.

3. Importance of Salary Calculation

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

4. Using the Calculator

Tips: Enter all amounts in INR. Use your annual figures for gross salary and deductions. The calculator will compute your monthly take-home pay.

5. Frequently Asked Questions (FAQ)

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

Q2: How is income tax calculated?
A: Income tax is calculated based on your tax slab. You can use the Indian income tax calculator to estimate this amount.

Q3: Is provident fund mandatory?
A: EPF is mandatory for most salaried employees in organizations with 20+ employees, with 12% of basic salary typically contributed.

Q4: Does professional tax vary by state?
A: Yes, professional tax rates vary across different Indian states, with maximum typically being ₹2,500 per year.

Q5: Are there other deductions not included here?
A: This calculator covers major deductions. Others like health insurance, loan repayments, or voluntary contributions would need to be subtracted separately.