What is the Bonus Calculator?
When your employer announces a bonus (e.g., Diwali bonus or annual performance bonus), the amount hitting your bank account is usually lower than the announced figure. This is because bonuses are considered part of your taxable income and are subject to TDS (Tax Deducted at Source).
This calculator helps you estimate the actual in-hand amount of your bonus by deducting the applicable tax.
How Bonuses are Taxed
In India, a bonus is added to your total gross salary for the financial year. Your employer will deduct TDS on this bonus based on your applicable income tax slab (which could be as high as 30% plus cess).