1. What is In-Hand Salary?

In-Hand Salary is the actual amount an employee takes home 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 income tax slabs
• Provident Fund — Employee's contribution to EPF
• Professional Tax — State-level tax on employment

Explanation: This calculation helps employees understand their actual take-home pay after all mandatory deductions.

3. Importance of Salary Calculation

Details: Understanding salary breakdown helps in financial planning, loan applications, and verifying employer deductions.

4. Using the Calculator

Tips: Enter all amounts in INR. For accurate results, use actual deduction values from your payslip.

5. Frequently Asked Questions (FAQ)

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

Q2: Are there other deductions not included here?
A: Yes, some companies may deduct for health insurance, loans, or other benefits, which aren't accounted for in this basic calculation.

Q3: How is income tax calculated?
A: Income tax is calculated based on government-defined slabs and may include various exemptions and deductions.

Q4: Is professional tax the same across India?
A: No, professional tax rates vary by state and are typically deducted monthly or annually.

Q5: When is provident fund deducted?
A: EPF is typically 12% of basic salary (employee contribution) and is deducted each month.