How the tax is calculated on salary?

In India, tax on salary income is calculated as follows:

1. Gross Salary: The first step is to calculate the Gross Salary, which includes the basic salary, dearness allowance (if any), house rent allowance (if any), and any other taxable allowances.

2. Deductions: Next, various deductions are made from the Gross Salary as per the provisions of the Income Tax Act, 1961, to arrive at the taxable income. Some of the common deductions include Provident Fund (PF) contributions, Professional Tax (PT), National Pension System (NPS) contributions, and life insurance premiums.

3. Taxable Income: After making all the eligible deductions, the taxable income is calculated. This is the amount on which the tax liability is computed.

4. Tax Liability: The tax liability is calculated by applying the applicable tax rate to the taxable income, after considering any exemptions and deductions.

5. TDS (Tax Deducted at Source): Tax is usually deducted at source by the employer and deposited with the government on behalf of the employee. The employee can claim a credit for the TDS while filing the income tax return.

It's important to note that the tax rates and exemptions are subject to change and it's best to check the most up-to-date information from the Indian government's official website or from a tax professional.