1. What is Net Salary?

Net salary, or take-home salary, is the amount an employee receives after all deductions like income tax, provident fund, and professional tax are subtracted from the gross salary. 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 deducted as per income tax slabs
• \( Provident\ Fund \) — Employee's contribution to EPF
• \( Professional\ Tax \) — State-mandated professional tax

Explanation: The calculator subtracts all mandatory deductions from your gross salary to give you the actual amount you'll receive.

3. Importance of Salary Calculation

Details: Understanding your net salary helps in financial planning, budgeting, and verifying that your employer is making correct deductions.

4. Using the Calculator

Tips: Enter your gross salary and all deduction amounts in INR. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What's the difference between gross and net salary?
A: Gross salary is your total salary before deductions, while net salary is what you actually receive after all deductions.

Q2: Are there other deductions not included here?
A: Yes, some employers may deduct for health insurance, meal coupons, or other benefits which aren't included in this basic calculation.

Q3: How is income tax calculated?
A: Income tax is calculated based on government-defined slabs and varies based on your income level and tax-saving investments.

Q4: Is professional tax the same across India?
A: No, professional tax rates vary by state and are typically deducted monthly with an annual ceiling.

Q5: Can I use this for freelance income?
A: No, this calculator is designed for salaried employees. Freelancers have different tax calculations.