How is In-Hand Salary Calculated?
In-hand salary is the net amount an employee receives in their bank account after all deductions. The Gross Salary is the sum of all allowances (Basic, HRA, LTA, Special Allowance) before any taxes or provident fund deductions are made.
Common Salary Deductions
- EPF (Employee Provident Fund): A mandatory savings scheme where employees contribute a percentage of their basic salary.
- Professional Tax: A state-level tax levied on salaried individuals, usually capped at ₹2,500 per year.
- TDS (Tax Deducted at Source): Estimated income tax deducted monthly based on the employee's tax slab and declared investments.
Use our In-Hand Salary Calculator to quickly estimate your take-home pay and manage your monthly budget effectively!