Direct Tax Calculation
The direct tax is calculated as per the latest income tax slabs under the New Tax Regime. This includes the application of a 4% health and education cess, the standard rebate under Section 87A for incomes up to ₹12,00,000, and marginal relief where applicable to ensure a fair tax transition across slabs.
Indirect Tax Estimation
Indirect tax (primarily GST) is harder to calculate precisely as it depends on individual spending patterns. We use an estimation model based on World Bank and government consumption survey data. The model applies an effective indirect tax rate based on your income group, as people with different incomes have different consumption baskets.
| Income Group | Subgroup | Effective IDT (%) | Explanation |
|---|---|---|---|
| Low Income | Extremely Low | 6% | Mostly essentials, low petrol use, high spending ratio |
| Low Income | Lower-Low | 7% | Some FMCG & services, still very basic consumption |
| Low Income | Upper-Low | 8% | More transport expense, more exposure to 18% items |
| Middle Income | Lower-Middle | 9% | Moderate petrol usage, more services, still essential-heavy |
| Middle Income | Core Middle | 11% | High 18% slab usage, restaurants, electronics |
| Middle Income | Upper-Middle | 12% | Lifestyle consumption, higher discretionary spending |
| Upper Income | Affluent | 13% | Heavy 18% slab usage, transport, domestic travel |
| Upper Income | Rich | 14% | High lifestyle expenditure, premium goods, more services |
| Upper Income | HNWI | 15%+ | Luxury/sin goods, premium consumption, high-value services |
Disclaimer
This calculator provides an estimate for illustrative purposes only. It is not financial advice. The calculations are based on simplified models and do not account for all individual circumstances, deductions, or specific consumption habits. For accurate financial planning, please consult a qualified financial advisor.