How to Use the Tax Calculator

Here’s a simple guide to using the tax calculator I provided:

Step-by-Step Instructions

1. Enter Your Annual Income

• In the “Annual Income (₹)” field, type your total yearly income before taxes
• Example: If you earn ₹8,50,000 per year, enter “850000”

1. Select Tax Regime

• Choose between:
  • “New Tax Regime” (default option with lower rates but fewer deductions)
  • “Old Tax Regime” (higher rates but allows more deductions)

1. Click “Calculate Tax” Button

• Press the green button to calculate your taxes

1. View Results

• The calculator will display:
  • Total tax payable
  • Your take-home pay after tax
  • Effective tax rate (percentage of income paid as tax)

Understanding the Results

• Tax Payable: The total amount of income tax you owe for the year
• Take Home Pay: Your income after deducting taxes
• Effective Tax Rate: What percentage of your total income goes to taxes

Example Calculation

For an income of ₹9,00,000 under New Tax Regime:

1. Enter “900000” in income field
2. Keep “New Tax Regime” selected
3. Click calculate
4. Result shows:

• Tax: ₹54,600
• Take Home: ₹8,45,400
• Effective Rate: 6.07%

Tips

• For salaries, use your gross annual salary (before any deductions)
• For business income, use your net taxable profit
• The calculator includes the 4% health and education cess automatically
• Remember this is for estimation – actual tax may vary based on deductions/exemptions