Bonus Tax Calculator

A performance or festival bonus is usually taxed as salary in the month it is paid. This page applies a flat rate you type. A ₹50,000 bonus at 20% leaves ₹40,000 after ₹10,000 tax. Real TDS uses your remaining slab, cess and declarations — so 20% is a planning slice, not Form 16.

Why CTC is not in-hand

Salespeople in Gurgaon and factory staff in Coimbatore see a gross bonus and spend it before payroll withholds TDS. IndiaKit makes the haircut visible. It is not the Bonus Act eligibility calculator (that statute has wage ceilings and 8.33% formulas this page does not run).

What we subtract

Tax = bonus × rate/100. Post-tax = bonus − tax. Defaults ₹50,000 at 20% → ₹10,000 tax, ₹40,000 left. Cess is not added unless you bake it into the rate (20.8% would be a crude 20%+4% cess on that slice).

If the bonus pushes you into a higher slab only on the margin, a flat 20% may be too harsh or too kind. Use the income-tax tool for the year, not this page, for that question.

Statutory bonus under the Payment of Bonus Act is a different computation. Do not mix it with a CTC performance bonus.

₹50,000 Diwali bonus in Coimbatore at 20%

A supervisor in Coimbatore is promised ₹50,000 gross bonus. At a 20% planning tax rate the page shows ₹40,000 in-hand from that line. He does not pre-order a two-wheeler on the ₹50,000 figure.

Payroll is still the source of truth

Flat rate, no cess unless included, no Bonus Act formula, no employer PF on bonus (policy-specific). Indicative.

Common questions

Does bonus attract PF?

Often not, when it is excluded from PF wages, but some structures include it. This tool never adds PF. Check the wage definition in your EPFO filings with HR.

Should I type 30% if I am in the top slab?

You can, as a conservative slice, and optionally add cess. The accurate method is to rerun annual tax with and without the bonus on the income-tax page.

Is Diwali bonus legally required?

The Payment of Bonus Act covers certain establishments and wage bands. Many CTC bonuses are contractual, not statutory. This page taxes an amount you type; it does not decide entitlement.