1. What is Salary Tax Calculation?

The salary tax calculation determines the monthly tax deductions from your salary in India, including income tax (based on annual slabs) and professional tax (state-specific).

2. How Does the Calculator Work?

The calculator uses the following components:

Where:

• Income Tax — Calculated based on annual income tax slabs for AY 2023-24, divided by 12 for monthly amount
• Professional Tax — State-specific tax on employment, typically capped at ₹2,500 annually

Explanation: The calculator first computes annual income tax based on your monthly salary multiplied by 12, then converts it back to monthly amount and adds the state professional tax.

3. Importance of Tax Calculation

Details: Accurate tax calculation helps in financial planning, understanding take-home salary, and ensuring correct tax deductions by employers.

4. Using the Calculator

Tips: Enter your gross monthly salary (before any deductions), select your age group and state of employment. The calculator will show your estimated monthly tax deductions.

5. Frequently Asked Questions (FAQ)

Q1: What is the basic exemption limit?
A: For FY 2023-24, it's ₹2.5 lakh for individuals below 60, ₹3 lakh for seniors (60-80), and ₹5 lakh for super seniors (80+).

Q2: Are there any rebates available?
A: Yes, under section 87A, tax rebate up to ₹12,500 is available for total income up to ₹5 lakh.

Q3: What is professional tax?
A: A state-level tax on employment, deducted monthly with annual caps (typically ₹2,500).

Q4: Does this calculator consider deductions?
A: No, this calculates tax on gross salary. Actual tax may be lower with deductions (80C, 80D, HRA, etc.).

Q5: When are the tax slabs revised?
A: Tax slabs are typically announced in the annual Union Budget, effective from the next financial year.