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 represents the net amount credited to your bank account.

2. How Does the Calculator Work?

The calculator uses the following formula:

Where:

• Gross Salary — Total salary before any deductions
• Income Tax — Tax as per 2025 income tax slabs
• PF — Provident Fund contribution (typically 12% of basic salary)
• Professional Tax — State-specific tax (usually up to ₹2,500/year)

3. Components of Salary Calculation

Details: Understanding each component is crucial for accurate salary calculation:

• Gross Salary: Includes basic salary, HRA, allowances, bonuses
• Income Tax: Calculated based on 2025 tax slabs and exemptions
• PF: Employee's contribution to retirement fund
• Professional Tax: Deducted by state governments

4. Using the Calculator

Tips: Enter all values in INR. For accurate results, use:

• Annual gross salary (not monthly)
• Total annual income tax as per your tax bracket
• Total annual PF contributions
• Total annual professional tax

5. Frequently Asked Questions (FAQ)

Q1: What's the difference between CTC and in-hand salary?
A: CTC (Cost to Company) includes all benefits + employer contributions. In-hand salary is what you receive after deductions.

Q2: How is income tax calculated for 2025?
A: Based on 2025 tax slabs (0% up to ₹3L, 5% for ₹3-6L, 20% for ₹6-9L, 30% above ₹15L) with applicable deductions.

Q3: Is PF calculated on basic or gross salary?
A: Typically 12% of basic salary, but some companies calculate on gross salary.

Q4: Do all states have professional tax?
A: Most states do, but amounts vary (e.g., ₹2,500/year in Maharashtra, ₹2,400/year in Karnataka).

Q5: How can I increase my in-hand salary?
A: Through tax-saving investments (80C, 80D), HRA exemptions, and optimizing salary structure.