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Salary Formula:
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Take home salary (in-hand salary) is the amount an employee receives after all deductions like income tax, provident fund (PF), professional tax, etc. It's the actual amount credited to your bank account each month.
The calculator uses the following formula:
Where:
Income Tax: Calculated based on current tax slabs with standard deduction of ₹50,000.
Provident Fund (PF): 12% of basic salary (employee contribution).
Professional Tax: State-specific tax deducted monthly (capped at ₹2,500/year in most states).
Tips: Enter your annual gross salary and basic salary in INR. Select your state for accurate professional tax calculation. The calculator provides both annual and monthly take-home amounts.
Q1: What's the difference between gross and basic salary?
A: Gross salary is your total salary before deductions. Basic salary is a fixed component (usually 40-50% of gross) used to calculate PF and other benefits.
Q2: Are there other deductions not included here?
A: This calculator covers major deductions. Your actual salary may have additional deductions like health insurance, loan repayments, or other voluntary deductions.
Q3: How accurate is the tax calculation?
A: This provides an estimate based on standard tax slabs. Actual tax may vary based on investments, exemptions, and other factors.
Q4: Why does professional tax vary by state?
A: Professional tax is levied by state governments, so rates differ across states. Maharashtra deducts ₹200/month (₹300 in Feb), while Karnataka deducts ₹200/month.
Q5: When is PF not deducted?
A: PF is generally mandatory for employees in organizations with 20+ employees. Some small companies or contract positions may not deduct PF.