1. What is Take Home Salary?

Take home salary (or in-hand salary) is the amount an employee receives after all deductions like income tax, provident fund (PF), professional tax, etc. It represents the actual amount deposited in 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 — Employee's contribution to Provident Fund (typically 12% of basic salary)
• Professional Tax — State-specific tax (typically ₹200-₹2,500 per year)

Explanation: This calculation gives you the net amount you receive after mandatory deductions.

3. Importance of Salary Calculation

Details: Understanding your take-home pay helps in financial planning, budgeting, and loan applications. It's crucial to know your actual disposable income.

4. Using the Calculator

Tips: Enter your annual gross salary and all applicable deductions. For accurate results, use your actual tax and PF amounts rather than estimates.

5. Frequently Asked Questions (FAQ)

Q1: What's the difference between CTC and take-home salary?
A: CTC (Cost to Company) includes all benefits and bonuses, while take-home is what you receive after deductions.

Q2: How is income tax calculated?
A: Based on 2025 tax slabs which consider your income level and applicable deductions.

Q3: Is PF contribution mandatory?
A: For organizations with 20+ employees, PF contribution is mandatory for employees earning up to ₹15,000 basic salary.

Q4: Why does professional tax vary?
A: Professional tax rates differ by state in India, typically ranging from ₹200 to ₹2,500 annually.

Q5: Are there other deductions not included here?
A: Yes, some companies may deduct for health insurance, meal coupons, or other benefits which aren't accounted for in this basic calculation.