1. What is Monthly Salary Tax?

In India, monthly salary tax consists of two main components: Income Tax (calculated annually but often deducted monthly) and Professional Tax (a state-level tax on employment). This calculator helps estimate your monthly tax deductions.

2. How Does the Calculator Work?

The calculator uses the simple formula:

Where:

• Income Tax — Your total annual income tax liability (INR)
• Professional Tax — Your total annual professional tax (INR)

Explanation: The calculator divides your total annual taxes by 12 months to estimate your monthly deduction.

3. Importance of Tax Calculation

Details: Understanding your monthly tax deductions helps with financial planning, budgeting, and ensuring correct tax deductions from your salary.

4. Using the Calculator

Tips: Enter your total annual income tax and professional tax amounts in INR. Both values must be non-negative numbers.

5. Frequently Asked Questions (FAQ)

Q1: What's the difference between Income Tax and Professional Tax?
A: Income Tax is a direct tax on your annual income paid to the central government, while Professional Tax is a state tax on employment (capped at ₹2,500/year in most states).

Q2: How is annual Income Tax calculated?
A: Based on your income slab after deductions (like 80C, HRA, etc.). This calculator assumes you already know your annual tax liability.

Q3: Is Professional Tax the same in all states?
A: No, Professional Tax rates vary by state. Some states don't charge it at all.

Q4: Are there other salary deductions not included here?
A: Yes, this doesn't include EPF, ESI, or other voluntary deductions that may be part of your salary structure.

Q5: Can I use this for tax filing?
A: This is for estimation only. Always consult a tax professional or use official tax calculators for filing.