How to Calculate Salary After Tax?
Calculating your salary after tax requires understanding the income tax slabs applicable to you. Under the New Tax Regime in India, the government has simplified the tax structure by removing most deductions but providing lower tax rates.
New Tax Regime Slabs
The calculation starts by taking your Annual Gross Salary and subtracting the ₹50,000 standard deduction to arrive at your Taxable Income. Then, the following slabs are applied:
- Up to ₹3,00,000: Nil
- ₹3,00,001 to ₹6,00,000: 5%
- ₹6,00,001 to ₹9,00,000: 10%
- ₹9,00,001 to ₹12,00,000: 15%
- ₹12,00,001 to ₹15,00,000: 20%
- Above ₹15,00,000: 30%
Furthermore, if your taxable income is below ₹7 Lakhs, you receive a rebate under section 87A, making your tax liability ZERO.