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 (PF), professional tax, and other deductions 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 based on income tax slabs
• PF — Provident Fund contribution (typically 12% of basic salary)
• Professional Tax — State-specific tax on employment

3. Importance of Salary Calculation

Details: Understanding your in-hand salary helps in financial planning, loan applications, and ensuring you're being paid correctly according to your employment agreement.

4. Using the Calculator

Tips: Enter your annual gross salary and all applicable deductions. The calculator will show your estimated take-home salary after all deductions.

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: 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.

Q3: How is income tax calculated?
A: Income tax is calculated based on government-defined slabs and may vary based on your investments and tax-saving declarations.

Q4: Is professional tax the same across India?
A: No, professional tax rates vary by state and are typically deducted monthly with an annual ceiling.

Q5: Can I use this for monthly salary calculation?
A: Yes, just enter your monthly figures and the calculation will work the same way.