1. What is Salary Bonus Tax in India?

In India, bonuses are considered supplemental income and are taxed at a flat rate of 30% (plus applicable surcharge and cess) under Section 192 of the Income Tax Act. This calculator helps you determine your net bonus after tax deduction.

2. How Does the Calculator Work?

The calculator uses the following formula:

Where:

• Bonus Amount — The gross bonus amount in Indian Rupees (₹)
• 0.30 — The 30% flat tax rate for supplemental income

Note: This is a simplified calculation and doesn't account for surcharge or health/education cess which may apply in some cases.

3. Importance of Bonus Tax Calculation

Details: Understanding your net bonus helps in financial planning and setting realistic expectations about your take-home pay. It's particularly important for employees receiving performance bonuses or festival bonuses.

4. Using the Calculator

Tips: Simply enter your gross bonus amount in INR (without commas) and click calculate. The calculator will show both the tax amount and your net bonus after tax.

5. Frequently Asked Questions (FAQ)

Q1: Is bonus always taxed at 30% in India?
A: Generally yes, as it's considered supplemental income, but the exact rate may vary slightly based on your total income and applicable surcharges.

Q2: Are there any exemptions on bonus taxation?
A: No specific exemptions exist for bonus income, but standard deductions under Section 16 may apply to your total salary income.

Q3: Does this calculator include cess and surcharge?
A: No, this shows only the basic 30% tax. Actual deduction may be slightly higher (typically 31.2% including cess).

Q4: Is bonus part of my salary for tax purposes?
A: Yes, bonus is considered part of your salary income and is taxed under the head "Income from Salaries."

Q5: When is bonus typically paid in India?
A: Many companies pay annual bonuses around Diwali (festival season), while performance bonuses may be paid at year-end or after performance reviews.