About the Income Tax Calculator

What it does

Estimates yearly and monthly income tax from your taxable income using the selected tax year’s slabs, surcharges, and basic reliefs. Shows total tax, effective rate, and net pay.

Key concepts

• Gross income: Salary, allowances, bonuses, other taxable receipts.
• Exemptions/reliefs: Amounts legally excluded from tax (e.g., certain allowances, rebates/credits).
• Taxable income: Gross income − exemptions/reliefs.
• Progressive slabs: Higher portions of income taxed at higher rates.
• Surcharge/cess: Extra % on computed tax when thresholds apply.
• Withholding (monthly): Estimated annual tax divided by 12 for payroll deduction.

Fields in this calculator

• Tax year: Selects slab rates and any surcharges for that year.
• Annual gross salary: Base pay plus taxable allowances and bonuses.
• Exempt allowances (optional): Amounts not taxed per rules.
• Deductible contributions (optional): Provident/pension/charity up to limits.
• Tax credits/rebates (optional): Subtracted from computed tax where allowed.
• Resident status (optional): May affect slabs/credits.
• Other income (optional): Interest, rent, etc., if aggregated.

Computation steps

1) Taxable = Gross − Exemptions − Deductions (within limits)
2) For each slab:
     tax += min(max(Taxable − lower, 0), slab_width) × rate
3) Apply surcharge/cess if thresholds are crossed
4) Apply credits/rebates: tax = max(0, tax − credits)
5) Effective rate = tax / Gross
6) Monthly withholding ≈ tax / 12
      

Outputs

• Total annual tax and monthly withholding.
• Effective tax rate (% of gross).
• Net annual and net monthly pay.
• Slab breakdown: Tax contributed by each bracket.

Example (progressive slabs)

If slabs are:
  0–600,000: 0%
  600,001–1,200,000: 5%
  1,200,001–2,400,000: 10%
Taxable income = 2,000,000
Tax = (600k×0%) + (600k×5%) + (800k×10%) = 110,000
Monthly ≈ 9,167; Effective ≈ 5.5%
      

Notes and limitations

• Assumes regular employment income. Capital gains, property income, or special rates may differ.
• Rounding and relief caps follow local rules; results are estimates.
• Mid-year changes or irregular bonuses may alter monthly withholding.

Good practice

• Enter exemptions and deductions accurately and within legal limits.
• Use the correct tax year. Rules change annually.
• For complex cases, confirm with official tax guidance or a professional.

Educational estimate. Not tax advice. Verify rates and eligibility under the current Finance Act and local regulations.