1. What is Take Home Salary?

Take home salary (in-hand salary) is the amount an employee receives after all deductions like income tax, provident fund, professional tax, etc. This calculator computes your net salary under India's new tax regime for a specific assessment year.

2. How Does the Calculator Work?

The calculator uses the following formula:

Where:

• Gross Salary — Total salary before any deductions
• Income Tax — Calculated based on new regime tax slabs
• PF — Employee's provident fund contribution (typically 12% of basic salary)
• Professional Tax — State-specific tax deducted from salary (varies by state)

3. Components of Salary Calculation

Details: The new tax regime offers lower tax rates but without most deductions and exemptions. Professional tax varies by state (typically ₹200-₹250 per month). PF is usually 12% of basic salary.

4. Using the Calculator

Tips: Enter your annual gross salary, assessment year, PF contribution, and professional tax. The calculator will compute your take-home salary after all deductions under the new tax regime.

5. Frequently Asked Questions (FAQ)

Q1: What's the difference between old and new tax regimes?
A: New regime has lower tax rates but fewer deductions. Old regime allows more deductions but has higher tax rates.

Q2: Is PF contribution mandatory?
A: For organizations with 20+ employees, PF contribution (12% of basic) is mandatory for employees earning up to ₹15,000 basic salary.

Q3: How is professional tax calculated?
A: It's state-specific, typically ₹200/month (₹2,400/year) in most states, with some variations.

Q4: Can I switch between old and new regimes?
A: Salaried employees can choose each year, while business/professionals must stick to their chosen regime.

Q5: Are there any cess/surcharge calculations?
A: This calculator doesn't include health/education cess (4%) or surcharge (for very high incomes) for simplicity.