1. What is Taxable Salary?

Taxable salary is the portion of your gross salary that is subject to income tax after accounting for various exemptions and deductions allowed under Indian tax laws.

2. How Does the Calculator Work?

The calculator uses the simple formula:

Where:

• Gross Salary — Your total annual salary before any deductions
• Exemptions — Sum of all eligible exemptions (HRA, 80C deductions, etc.)

Explanation: The calculation determines your actual taxable income by subtracting all eligible exemptions from your gross salary.

3. Importance of Taxable Salary Calculation

Details: Accurate taxable salary calculation is crucial for proper tax planning, ensuring you claim all eligible deductions and pay the correct amount of tax.

4. Using the Calculator

Tips: Enter your annual gross salary and the total of all exemptions (HRA, standard deduction, Section 80C deductions, etc.) in INR. Both values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What are common exemptions in India?
A: Common exemptions include HRA, standard deduction (₹50,000), Section 80C deductions (up to ₹1.5 lakh), medical insurance (80D), and more.

Q2: Is the taxable salary the same as take-home salary?
A: No, taxable salary is used to calculate tax liability. Take-home salary is after deducting taxes and other deductions like PF.

Q3: What if my exemptions exceed my gross salary?
A: The calculator will show zero taxable salary as it cannot be negative.

Q4: Are there different tax slabs based on taxable salary?
A: Yes, India has progressive tax slabs with rates from 0% to 30% plus cess, depending on your taxable income.

Q5: Should I consult a CA for exact calculations?
A: While this calculator provides estimates, for complex cases with multiple income sources, consulting a tax professional is recommended.