1. What is the New Tax Regime?

The new tax regime offers lower tax rates but removes most deductions and exemptions. It's optional for individuals to choose between old and new regimes when filing ITR.

2. How Salary Calculation Works

The calculator uses the following formula:

Where:

• \( Gross\ Salary \) — Total annual salary before deductions
• \( Income\ Tax \) — Calculated based on new regime slabs
• \( PF \) — Employee's Provident Fund contribution
• \( Professional\ Tax \) — State-specific professional tax

3. Income Tax Slabs (New Regime)

For FY 2023-24 (AY 2024-25):

• Up to ₹3,00,000: Nil
• ₹3,00,001 - ₹6,00,000: 5%
• ₹6,00,001 - ₹9,00,000: ₹15,000 + 10% of amount exceeding ₹6,00,000
• ₹9,00,001 - ₹12,00,000: ₹45,000 + 15% of amount exceeding ₹9,00,000
• ₹12,00,001 - ₹15,00,000: ₹90,000 + 20% of amount exceeding ₹12,00,000
• Above ₹15,00,000: ₹1,50,000 + 30% of amount exceeding ₹15,00,000

4. Using the Calculator

Tips: Enter gross annual salary, PF contribution (typically 12% of basic), and professional tax (varies by state, typically ₹200-₹250/month).

5. Frequently Asked Questions (FAQ)

Q1: Should I choose new or old tax regime?
A: New regime benefits those with fewer investments/deductions. Compare both scenarios before deciding.

Q2: Is PF contribution mandatory?
A: For organizations with 20+ employees, PF is mandatory for employees earning up to ₹15,000 basic salary.

Q3: How is professional tax calculated?
A: Varies by state, typically ₹200-₹250 per month, with annual ceiling of ₹2,500 in most states.

Q4: Are there any rebates in new regime?
A: Standard deduction of ₹50,000 is available for salaried individuals under new regime.

Q5: Does this include cess and surcharge?
A: This calculator shows basic tax. Add 4% health and education cess for final tax liability.