tax-calculator-by-yousaf 0.2.2

A simple calculator to compute income tax for India FY 2025-26

Indian Tax Calculator FY 2025-26

A comprehensive calculator to compute income tax for India based on both old and new tax regimes for Financial Year 2025-26, reflecting the latest changes from Budget 2025.

Features

• Calculate tax based on either monthly or yearly salary inputs
• Support for both old and new tax regimes with accurate 2025-26 tax slabs
• Detailed breakdown of tax calculation
• Monthly mode includes options for:
• Consolidated additional incentives/allowances (performance pay, special allowance, etc.)
• Consolidated additional deductions (Professional Tax, Labor Welfare Fund, etc.)
• Yearly mode includes annual bonus/variable pay input
• Considers standard deduction, PF, LTA, HRA, and other components
• Additional tax-saving deductions for old regime (80C, 80D, 80E)
• Computes in-hand salary after all deductions
• Easy-to-use command-line interface

Installation

You can install the package directly from PyPI:

pip install tax_calculator_by_yousaf

Alternatively, you can install directly from GitHub:

pip install git+https://github.com/yousafkhamza/tax_calculator_by_yousaf.git

Usage

After installation, you can run the calculator directly from the command line:

tax-calculator

Or import it in your Python code:

from tax_calculator import calculate_tax_2025_26

calculate_tax_2025_26()

Tax Calculation Details

New Regime (Default for FY 2025-26)

• Standard Deduction: ₹75,000
• Tax Slabs:
  • Up to ₹4,00,000: No tax
  • ₹4,00,001 to ₹8,00,000: 5%
  • ₹8,00,001 to ₹12,00,000: 10%
  • ₹12,00,001 to ₹16,00,000: 15%
  • ₹16,00,001 to ₹20,00,000: 20%
  • ₹20,00,001 to ₹24,00,000: 25%
  • Above ₹24,00,000: 30%
• Section 87A rebate up to ₹60,000 for income up to ₹12,00,000
  • Effective zero tax for income up to ₹12,00,000
  • For salaried individuals, effective zero tax for income up to ₹12,75,000 (due to standard deduction)

Old Regime

• Standard Deduction: ₹50,000
• Tax Slabs:
  • Up to ₹2,50,000: No tax
  • ₹2,50,001 to ₹5,00,000: 5%
  • ₹5,00,001 to ₹10,00,000: 20%
  • Above ₹10,00,000: 30%
• Section 87A rebate applicable for income up to ₹5,00,000
• Additional deductions available (80C, 80D, 80E, etc.)

Surcharge Details

• 10% for income between ₹50 lakhs and ₹1 crore
• 15% for income between ₹1 crore and ₹2 crore
• 25% for income between ₹2 crore and ₹5 crore
• 37% for income above ₹5 crore (25% under new regime)
• Health and Education Cess of 4% applicable on all tax amounts

When to Choose Which Regime?

• New Regime: Beneficial for individuals with fewer tax-saving investments or deductions, especially those with income above ₹15 lakhs
• Old Regime: May be more beneficial for individuals with significant tax-saving investments and deductions

Example Calculations

Example 1: Income of ₹10 lakhs

For a salaried individual with an annual income of ₹10 lakhs:

Monthly Breakdown:

• Basic: ₹50,000
• HRA: ₹20,000
• Special Allowance: ₹9,000
• Additional Incentives: ₹3,000
• LTA: ₹1,000
• PF: ₹6,000
• Additional Deductions: ₹300 (₹200 PT + ₹100 LWF)

Annual Calculation:

• New Regime: Effective tax of approximately ₹0 (due to rebate)
• Old Regime: With deductions of approximately ₹2.5 lakhs, tax could be approximately ₹31,200

Example 2: Income of ₹15 lakhs

For a salaried individual with an annual income of ₹15 lakhs:

Annual Breakdown:

• Basic: ₹750,000
• HRA: ₹300,000
• Special Allowance: ₹260,000
• LTA: ₹40,000
• Annual Bonus: ₹150,000
• PF: ₹90,000

Tax Calculation:

• New Regime: Effective tax of approximately ₹97,500
• Old Regime: With deductions of approximately ₹3 lakhs, tax could be approximately ₹1,42,896

Common Deductions in India

Monthly Salary Components:

• Basic Salary: The fixed part of your salary
• HRA (House Rent Allowance): Tax-exempt under conditions in old regime
• Special Allowance: Fully taxable component
• Additional Incentives can include:
  • Meal Allowance
  • Transport Allowance
  • Telephone/Internet Reimbursement
  • Uniform Allowance
  • Medical Allowance

Monthly Deductions:

• PF (Provident Fund): Usually 12% of Basic Salary
• Professional Tax: Varies by state (₹200-300 per month)
• Labor Welfare Fund: Nominal amount (₹20-100) depending on state

Annual Components:

• LTA (Leave Travel Allowance): Tax-exempt for domestic travel under old regime
• Annual Bonus/Variable Pay: Performance-based payment
• Annual Incentives: Special performance bonuses

Command-Line Interface

The calculator guides you through a simple interactive process:

Monthly Input Mode

1. Choose monthly input mode
2. Enter monthly salary components:
   • Basic Salary
   • HRA
   • Special Allowance
   • Additional Incentives/Allowances (consolidated: meal allowance, transport allowance, etc.)
   • LTA
   • PF Contribution
   • Additional Deductions (consolidated: Professional Tax, Labor Welfare Fund, etc.)
3. Select tax regime
4. For old regime, enter additional deductions
5. View calculated monthly tax and in-hand salary

Yearly Input Mode

1. Choose yearly input mode
2. Enter Annual Bonus/Variable Pay
3. Enter yearly salary components:
   • Basic Salary
   • HRA
   • Special Allowance
   • LTA
   • PF Contribution
4. Select tax regime
5. For old regime, enter additional deductions
6. View calculated annual tax and in-hand salary

Requirements

• Python 3.6 or higher

License

This project is licensed under the MIT License - see the LICENSE file for details.

Author

Yousaf Khamza