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 each month.

2. How Does the Calculator Work?

The calculator uses the following formula:

Where:

• Gross Salary — Total salary before any deductions
• Income Tax — Tax deducted as per income tax slabs
• PF — Employee's contribution to Provident Fund (typically 12% of basic salary)
• Professional Tax — State-level tax on employment (varies by state)

Explanation: The calculation subtracts all mandatory deductions from the gross salary to arrive at the net amount received by the employee.

3. Importance of Salary Calculation

Details: Understanding your take-home salary helps in financial planning, budgeting, and comparing job offers. It's crucial to know how much you'll actually receive after all deductions.

4. Using the Calculator

Tips: Enter your annual gross salary and all applicable deductions. The calculator will show your annual take-home salary. Divide by 12 for monthly amount.

5. Frequently Asked Questions (FAQ)

Q1: What's included in Gross Salary?
A: Gross salary includes basic pay, allowances (HRA, DA, etc.), bonuses, and other benefits before any deductions.

Q2: How is Income Tax calculated?
A: Income tax is calculated based on your income slab under the old or new tax regime as chosen by you.

Q3: Is PF contribution mandatory?
A: For organizations with 20+ employees, PF contribution (12% of basic salary) is mandatory for employees earning up to ₹15,000 basic salary.

Q4: What is Professional Tax?
A: Professional tax is a state-level tax on employment, with maximum of ₹2,500 per year (varies by state).

Q5: Are there other deductions not included here?
A: Yes, some companies may have other deductions like ESIC, health insurance, loan recoveries, etc.