1. What is Income Tax Splitting?

Income tax splitting refers to the division of income across different tax slabs in India's progressive tax system. Each portion of income within a specific range is taxed at different rates, with higher income portions taxed at higher rates.

2. How Does the Calculator Work?

The calculator uses the basic tax formula:

Where:

• \( Income \) — Total taxable income in Indian Rupees (INR)
• \( Slab Rate \) — The applicable tax rate percentage for the income slab

Explanation: This calculates the tax amount for a specific income slab. For complete tax calculation, you would need to apply this to each applicable slab.

3. Importance of Tax Calculation

Details: Accurate tax calculation helps in financial planning, ensures compliance with tax laws, and helps avoid penalties for underpayment of taxes.

4. Using the Calculator

Tips: Enter your income in INR and the applicable slab rate percentage. The calculator will compute the tax amount for that specific slab.

5. Frequently Asked Questions (FAQ)

Q1: What are the current income tax slabs in India?
A: Tax slabs vary by year and taxpayer category (individual, senior citizen, etc.). Check the latest Income Tax Act for current rates.

Q2: How is tax calculated for income spanning multiple slabs?
A: Income is divided into portions falling within each slab, with each portion taxed at its respective rate.

Q3: Are there deductions available to reduce taxable income?
A: Yes, deductions under Section 80C, 80D, and others can reduce your taxable income before applying slab rates.

Q4: Does this include cess and surcharge?
A: No, this calculates basic tax. Health and education cess (4%) and applicable surcharge would need to be added separately.

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