1. What is In-Hand Salary Calculation?

The in-hand salary is the amount an employee actually receives after all deductions. This calculator computes the in-hand salary under India's new tax regime by deducting income tax, PF contributions, and professional tax from the gross salary.

2. How Does the Calculator Work?

The calculator uses the following formula:

Where:

• \( Gross\ Salary \) — Total salary before any deductions
• \( Income\ Tax \) — Calculated based on new regime slabs
• \( PF \) — Employee's Provident Fund contribution
• \( Professional\ Tax \) — State-specific professional tax

Tax Slabs (New Regime 2023-24):

• Up to ₹3 lakh: 0%
• ₹3-6 lakh: 5%
• ₹6-9 lakh: 10%
• ₹9-12 lakh: 15%
• ₹12-15 lakh: 20%
• Above ₹15 lakh: 30%

3. Importance of Salary Calculation

Details: Understanding salary components helps in financial planning, tax optimization, and verifying employer calculations. The new tax regime offers lower rates but fewer deductions.

4. Using the Calculator

Tips: Enter your annual gross salary. Add PF contribution (typically 12% of basic) and professional tax (varies by state, typically ₹200/month). All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: Should I choose old or new tax regime?
A: New regime is better if you have few deductions. Old regime may be better if you have substantial investments (HRA, 80C, etc.).

Q2: Is PF mandatory?
A: For organizations with 20+ employees, PF is mandatory for those earning up to ₹15,000 basic salary.

Q3: How is professional tax calculated?
A: It varies by state, typically ₹200-300/month with annual caps (e.g., ₹2,500 in Maharashtra).

Q4: Are there other deductions?
A: This calculator covers major deductions. Others may include ESIC, TDS, loan recoveries, etc.

Q5: Is the tax calculation exact?
A: This provides an estimate. Actual tax may vary based on exemptions, surcharges, and cess.