1. What is Salary Tax Calculation?

Salary tax in India consists of two main components: Income Tax (levied by central government) and Professional Tax (levied by state governments). This calculator helps estimate your monthly tax liability for Assessment Year 2025-26.

2. How Does the Calculator Work?

The calculator uses the following formula:

Where:

• Income Tax - Calculated based on your selected regime (New or Old) and age
• Professional Tax - Calculated based on your monthly salary and state

3. Income Tax Slabs for AY 2025-26

New Regime:

• Up to ₹3 lakh: Nil
• ₹3-6 lakh: 5%
• ₹6-9 lakh: 10%
• ₹9-12 lakh: 15%
• ₹12-15 lakh: 20%
• Above ₹15 lakh: 30%

Old Regime:

• Up to ₹2.5 lakh (₹3 lakh for seniors): Nil
• ₹2.5-5 lakh: 5%
• ₹5-10 lakh: 20%
• Above ₹10 lakh: 30%

4. Professional Tax by State

Maharashtra: ₹0-200/month based on salary
Karnataka: ₹0-200/month based on salary
Other States: Typically ₹150-250/month
Note: Professional tax has an annual cap of ₹2,500 in most states.

5. Frequently Asked Questions (FAQ)

Q1: Which regime should I choose?
A: The new regime generally benefits those with fewer deductions. Those with HRA, home loan, insurance etc. may benefit from old regime.

Q2: Is professional tax deductible from income tax?
A: Yes, professional tax is deductible under Section 16(iii) of Income Tax Act.

Q3: Are there any cess or surcharges?
A: This calculator doesn't include 4% health & education cess or surcharge for incomes above ₹50 lakh.

Q4: What about standard deduction?
A: Standard deduction of ₹50,000 is automatically applied in old regime calculations.

Q5: How accurate is this calculator?
A: It provides estimates based on published tax slabs. For exact calculations, consult a tax professional.