1. What is Income Tax on Salary and Pension?

Income tax on salary and pension is calculated based on your total income, age group, and applicable deductions. The tax consists of three components: basic income tax, surcharge (for higher incomes), and health & education cess (4%).

2. How Does the Calculator Work?

The calculator uses the following formula:

Where:

• Income Tax — Calculated based on income slabs under old or new regime
• Surcharge — Additional tax for incomes above ₹50 lakh (10-37%)
• Cess — 4% of (Income Tax + Surcharge)

Explanation: The calculator considers your age group (for old regime), selected tax regime, and applies the appropriate tax slabs and deductions.

3. Importance of Tax Calculation

Details: Accurate tax calculation helps in financial planning, ensures compliance with tax laws, and helps avoid penalties for underpayment of taxes.

4. Using the Calculator

Tips: Enter your total salary + pension income, select your age group and preferred tax regime (old with deductions or new with lower rates but no deductions).

5. Frequently Asked Questions (FAQ)

Q1: Which regime should I choose?
A: The new regime has lower rates but fewer deductions. Choose old regime if you have significant deductions (HRA, 80C, 80D, etc.).

Q2: What's the last date for filing ITR?
A: For AY 2024-25, the due date is typically July 31, 2024 (subject to government notifications).

Q3: Are senior citizens exempt from tax?
A: No, but they have higher exemption limits (₹3 lakh for 60-80 years, ₹5 lakh for above 80 under old regime).

Q4: How is pension taxed?
A: Pension is taxed as salary income. For family pension, standard deduction of ₹15,000 or 1/3rd of pension (whichever is lower) is available.

Q5: What's the difference between AY and FY?
A: FY (Financial Year) is the year in which income is earned (2023-24), AY (Assessment Year) is when it's assessed (2024-25).