Net income or In-hand salary is calculated by knowing Income Tax deductions, Public Provident Fund, Professional Tax and Gross Salary. By Take Home Pay formula, calculate the actual take home income by subtracting all the deductions such as Income Tax, Provident Fund (PF) and Professional Tax from the Gross salary. As per take home salary formula, the Basic salary of an employee should be at least 50 -60 percentage of his/her gross salary. It is the salary that an employee receives after all the statutory deductions.