1. What is Income Tax Calculation?

The Income Tax calculation determines the tax liability on an individual's salary in India based on taxable income, applicable slab rates, health and education cess, and available rebates under various sections of the Income Tax Act.

2. How Does the Calculator Work?

The calculator uses the income tax formula:

Where:

• \( \text{Taxable Income} \) — Total income after deductions (INR/year)
• \( \text{Slab Rate} \) — Applicable tax rate based on income bracket
• \( \text{Cess} \) — Health and education cess (typically 4% of tax)
• \( \text{Rebate} \) — Tax rebates like Section 87A (up to ₹60,000)

Explanation: The calculation first applies the slab rate to taxable income, adds cess, then subtracts any applicable rebates.

3. Importance of Tax Calculation

Details: Accurate tax calculation helps in financial planning, ensures compliance with tax laws, and helps taxpayers claim all eligible deductions and rebates.

4. Using the Calculator

Tips: Enter taxable income in INR, applicable slab rate as decimal (e.g., 0.05 for 5%), cess amount (typically 4% of tax), and rebate amount (e.g., ₹60,000 under Section 87A).

5. Frequently Asked Questions (FAQ)

Q1: What are the current tax slabs in India?
A: Tax slabs vary by year and age (senior citizen/super senior citizen). Check latest Income Tax Act for current rates.

Q2: What is cess in income tax?
A: Cess is an additional tax (currently 4%) levied on income tax for health and education purposes.

Q3: Who can claim rebate under Section 87A?
A: Resident individuals with taxable income up to ₹7 lakh can claim rebate up to ₹60,000 (FY 2024-25).

Q4: Are there other deductions available?
A: Yes, deductions under Section 80C, 80D, etc., can reduce taxable income before applying slab rates.

Q5: When is advance tax payable?
A: If tax liability exceeds ₹10,000 in a financial year, advance tax payments are required in installments.