Use this calculator to check how much salary you can expect to get in hand with the new income tax regime. We’ve also included a short explainer for each of the pointers mentioned in the form below. We’ve also provided a quick explainer for each of the fields below the calculator. Have a look at that to better understand the form.
Input fields
Are you a salaried employee – This question is relevant as the taxation strucutre is a little different for salaried and non salaried individuals. Salaried individuals would be eligible for a deduction of Rs. 75,000 from their income.
Taxable income before standard deduction – You can enter your annual income without needing to consider any standard deduction(as we would incorporate the same based on your salary status). Please ensure to remove employers contribution from EPF, as that is not taxed.
Output fields
Standard deduction – This deduction is applied on the net income of the person depending on whether they are salaried or not. If you are salaried you should be able to see the 75,000 deduction here, else it would show as 0
Tax before marginal benefit – This is the tax that’s calculated purely based on the slabs given in the recent budget and the rebate for 12lakh.
Marginal Income Tax Benefit – This is the benefit given to a people whose taxable income is slightly higher than the 12 lakh rebate limit. To prevent the income for these users to drop below what they could have earned at 12lakh, the government offers a marginal relief. This means that your income post tax, after you cross 12 lakh rebate limit will not drop below what you earned before the rebate limit
Net Tax Payable – This would be the net tax you would have to pay based on the revised slabs and also considering the standard deduction and marginal relief offered by the government. Keep in mind this tax does not include the health and education cess, which can would be 4% of the net tax payable.
Net Income – This is the final income that you can expect to receive annually. Again, this does not consider the health and education cess that would also be deducted from the income.
