In-Hand Salary Calculator

In-Hand Salary Calculator: How to Calculate Your Take-Home Pay

Understanding your actual take-home salary is crucial for personal financial planning. Our advanced in-hand salary calculator helps you determine exactly how much money you'll receive after all deductions like income tax, professional tax, Employee Provident Fund (EPF), and other statutory deductions.

What is In-Hand Salary?

In-hand salary, also known as take-home salary or net salary, is the actual amount you receive in your bank account after all deductions from your gross salary. It's calculated as:

In-Hand Salary = Gross Salary - (Income Tax + Employee PF + Professional Tax + Other Deductions)

Components of Salary Structure

• Basic Salary: The core component of your salary (usually 40-50% of CTC)
• House Rent Allowance (HRA): For accommodation expenses (usually 40-50% of basic)
• Conveyance Allowance: For commuting expenses (up to ₹1,600/month is tax-exempt)
• Medical Allowance: For medical expenses (up to ₹1,250/month is tax-exempt)
• Special Allowances: Other components that make up your CTC

Common Deductions from Salary

1. Income Tax (TDS): Based on your income tax slab and chosen regime
2. Employee Provident Fund (EPF): 12% of basic salary (employee contribution)
3. Professional Tax: State-specific tax (usually ₹200-₹300 per month)
4. Gratuity: 4.81% of basic salary if you've completed 5 years of service
5. Insurance Premiums: Health, life, or other insurance deductions

New vs Old Tax Regime: Which is Better?

The Indian government offers two tax regimes:

• New Tax Regime: Lower tax rates but fewer deductions (default from FY 2023-24)
• Old Tax Regime: Higher tax rates but allows deductions under Section 80C, 80D, HRA, etc.

Use our calculator to compare which regime gives you higher in-hand salary based on your investments and expenses.

How to Maximize Your In-Hand Salary

• Optimize your HRA exemption by submitting rent receipts
• Invest in tax-saving instruments under Section 80C (ELSS, PPF, NSC, etc.)
• Claim medical insurance premium under Section 80D
• Utilize conveyance and medical allowances fully
• Choose the right tax regime based on your investments

Salary Calculation Formula

To manually calculate your in-hand salary:

1. Calculate Gross Salary = Basic + HRA + Allowances
2. Calculate Taxable Income = Gross Salary - Exemptions (HRA, Conveyance, Medical)
3. Calculate Income Tax based on your tax slab
4. Calculate EPF = 12% of Basic Salary
5. Calculate Professional Tax (state-specific)
6. In-Hand Salary = Gross Salary - (Income Tax + EPF + Professional Tax + Other Deductions)