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 the tax regime you choose (old or new). The tax consists of three components: basic income tax, surcharge (for higher incomes), and health & education cess.

2. How Does the Calculator Work?

The calculator uses the following formula:

Where:

• Income Tax — Calculated based on applicable tax slabs
• Surcharge — Additional tax for high income earners (10-37%)
• Cess — Health and education cess (4% of income tax + surcharge)

3. Tax Slabs for AY 2025-26

Old Regime Slabs:

• Below 60: 0% up to ₹2.5L, 5% (₹2.5L-5L), 20% (₹5L-10L), 30% above ₹10L
• 60-80 years: 0% up to ₹3L, 5% (₹3L-5L), 20% (₹5L-10L), 30% above ₹10L
• Above 80: 0% up to ₹5L, 20% (₹5L-10L), 30% above ₹10L

New Regime Slabs (Default):

• 0% up to ₹2.5L, 5% (₹2.5L-5L), 10% (₹5L-7.5L), 15% (₹7.5L-10L), 20% (₹10L-12.5L), 25% (₹12.5L-15L), 30% above ₹15L

4. Using the Calculator

Steps:

1. Enter your total salary + pension income
2. Select your age group
3. Choose tax regime (old or new)
4. Click Calculate to see detailed tax breakdown

5. Frequently Asked Questions (FAQ)

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

Q2: What is the surcharge threshold?
A: Surcharge starts at 10% for income above ₹50L, increasing to 37% for income above ₹5Cr.

Q3: Is pension taxed differently from salary?
A: No, pension is taxed under the same "Income from Salaries" head as regular salary income.

Q4: Are there any rebates available?
A: Under old regime, section 87A provides rebate up to ₹12,500 for income below ₹5L.

Q5: When is the last date to file returns for AY 2025-26?
A: Typically July 31, 2025 for most individual taxpayers (unless extended by government).