1. What is Income Tax Calculation?

The Income Tax Calculator computes your tax liability based on your salary and pension income for the Financial Year 2023-24 (Assessment Year 2024-25) using the latest tax slabs and rules.

2. How Does the Calculator Work?

The calculator uses the following formula:

Where:

• Income Tax — Calculated based on FY 2023-24 tax slabs
• Surcharge — Additional tax for high income earners (10-37% of tax)
• Cess — Health and Education Cess (4% of tax + surcharge)

Explanation: The calculator first determines taxable income by subtracting deductions, then applies the appropriate tax slab rates based on age group, and finally adds surcharge and cess if applicable.

3. Importance of Tax Calculation

Details: Accurate tax calculation helps in financial planning, ensuring you set aside the right amount for tax payments and avoid penalties for underpayment.

4. Using the Calculator

Tips: Enter your total income from salary and pension, select your age group, and include any deductions you plan to claim under sections like 80C, 80D, etc.

5. Frequently Asked Questions (FAQ)

Q1: What are the tax slabs for FY 2023-24?
A: For individuals below 60: 0% up to ₹2.5L, 5% (₹2.5-5L), 20% (₹5-10L), 30% above ₹10L. Higher thresholds apply for senior citizens.

Q2: What is the surcharge threshold?
A: Surcharge applies when total income exceeds ₹50L (10%), ₹1Cr (15%), ₹2Cr (25%), and ₹5Cr (37%).

Q3: What is the rebate under section 87A?
A: Full tax rebate up to ₹12,500 for total income up to ₹5L (FY 2023-24).

Q4: Are there any changes in FY 2023-24?
A: New tax regime has become default (with lower rates but fewer deductions), but this calculator uses the old regime which allows deductions.

Q5: How is pension income taxed?
A: Pension is taxed as salary income under the head "Income from Salaries" in India.