1. What is the Ambition Box Salary Tax Calculator?

The Ambition Box Salary Tax Calculator estimates your total tax liability in India by calculating both Income Tax and Professional Tax based on your annual salary and state of employment.

2. How Does the Calculator Work?

The calculator uses the following formula:

Where:

• Income Tax - Calculated based on Indian income tax slabs
• Professional Tax - Varies by state (typically 200-250 INR/month)

Explanation: The calculator first determines income tax based on standard tax slabs, then adds professional tax which depends on your state of employment.

3. Importance of Tax Calculation

Details: Accurate tax calculation helps in financial planning, understanding take-home salary, and ensuring proper tax compliance.

4. Using the Calculator

Tips: Enter your gross annual salary in INR and select your state of employment. The calculator will show your estimated tax liability.

5. Frequently Asked Questions (FAQ)

Q1: What is professional tax?
A: Professional tax is a state-level tax on employment, typically deducted monthly (200-250 INR) by employers.

Q2: Are there any tax exemptions considered?
A: This calculator provides basic estimation. Actual tax may vary based on deductions (80C, HRA, etc.) not considered here.

Q3: Why does professional tax vary by state?
A: Professional tax is levied by state governments, so rates and rules differ across states.

Q4: Is this calculator accurate for all salary ranges?
A: It provides a good estimate but consult a tax professional for complex cases or high incomes.

Q5: Does this include all taxes on salary?
A: No, it covers income tax and professional tax only. Other deductions like PF may apply.