Salary Calculator India New Tax Regime

Salary Calculation Formula:

\[ \text{In-Hand Salary} = \text{Gross Salary} - \text{Income Tax (New Regime)} - \text{Provident Fund} - \text{Professional Tax} \]

Gross Salary (INR/year):

₹

Basic Salary (INR/year):

₹

State:

In-Hand Salary (Annual):

Income Tax (New Regime):

Provident Fund (12% of Basic):

Professional Tax:

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1. What is the Salary Calculation Formula?

The salary calculation formula under India's new tax regime is: In-Hand Salary = Gross Salary - Income Tax (New Regime) - Provident Fund - Professional Tax. This calculator helps estimate your take-home pay after all statutory deductions.

2. How Does the Calculator Work?

The calculator uses the following components:

\[ \text{In-Hand Salary} = \text{Gross Salary} - \text{Income Tax} - \text{Provident Fund} - \text{Professional Tax} \]

Where:

Gross Salary — Your total annual salary before any deductions
Income Tax — Calculated under new tax regime slabs
Provident Fund — 12% of basic salary (employee contribution)
Professional Tax — Varies by state (e.g., ₹2,500/year in Karnataka)

3. Understanding the New Tax Regime

Details: The new tax regime (effective from FY 2023-24) has lower tax rates but fewer deductions. Key features:

No deductions for HRA, LTA, 80C, 80D, etc.
Standard deduction of ₹50,000 available
Rebate under section 87A up to ₹25,000 (income ≤ ₹7 lakh)

4. Using the Calculator

Tips: Enter your gross annual salary and basic salary in INR. Select your state for accurate professional tax calculation. The calculator will show your estimated in-hand salary after all deductions.

5. Frequently Asked Questions (FAQ)

Q1: Should I choose old or new tax regime?
A: The new regime benefits those with fewer investments/deductions. Compare both options to decide.

Q2: Is PF contribution tax-free?
A: Employee PF contribution (12% of basic) is tax-free under section 80C in old regime, but not in new regime.

Q3: What's not included in this calculation?
A: This doesn't include deductions like health insurance, NPS, or other allowances that may affect your taxable income.

Q4: How accurate is this calculator?
A: It provides estimates based on standard deductions. Actual salary may vary based on company policies and additional deductions.

Q5: What are the tax slabs under new regime?
A: 0% up to ₹3 lakh, 5% (₹3-6L), 10% (₹6-9L), 15% (₹9-12L), 20% (₹12-15L), and 30% above ₹15L.