Tax Guide
How Salary Tax is Calculated in India
Understand how your salary is taxed, including all deductions and exemptions.
Salary Components & Tax Treatment
| Component | Tax Status | Limit/Remarks |
|---|---|---|
| Basic Salary | Fully Taxable | 100% taxable |
| HRA | Partially Exempt | Least of 3 calculations |
| LTA | Exempt | 2 trips in 4 years block |
| Special Allowance | Fully Taxable | 100% taxable |
| Standard Deduction | Deduction | ₹50,000 (both regimes) |
| Professional Tax | Deduction | Max ₹2,500/year |
| EPF Contribution | 80C Deduction | Part of ₹1.5L limit |
HRA Exemption Calculation
HRA exemption is the least of:
- 1. Actual HRA received from employer
- 2. Rent paid minus 10% of basic salary
- 3. 50% of basic (metro) or 40% of basic (non-metro)