Bonus Tax Calculator India: How Much Will You Get?
Calculate tax on your performance, annual, or joining bonus. See net payout after TDS, effective tax rate, and how to legally keep more of your bonus.
Annual CTC (excluding bonus)
₹
Bonus Amount (gross)
₹
Enter the full bonus before TDS
Tax Regime (FY 2026-27)
Net Bonus After Tax
₹1,20,000
0.0% effective tax on this bonus · Marginal rate: 10%
Gross Bonus
₹1,20,000
TDS on Bonus
Tax without bonus: ₹0/yr → with bonus: ₹0/yr
−₹0
NET BONUS IN HAND
0.0% effective tax rate on bonus
₹1,20,000
Bonus season = job market season. Get your resume ATS-ready.
Build My Resume, Free →What this assumes
- Basic salary is taken as 40% of CTC, which is typical but varies by employer
- EPF is calculated on the ₹15,000 statutory ceiling
- No HRA exemption is applied, since rent is not collected here
- No 80C or 80D deductions are included, so your actual tax will usually be lower
Change any of those in your own case and the number moves. Use it to compare scenarios, not to file anything.
How bonus taxation works in India
Three things every bonus earner should know before April.
Bonus is taxed as ordinary salary income
There is no flat tax rate or separate treatment for bonuses in India. Your bonus is added to annual salary income and taxed at your applicable slab. The only difference: employers often deduct TDS in the month the bonus is paid, which can spike your that-month TDS.
Joining bonuses have clawback implications
Many employers offer joining bonuses with a clawback clause (repay if you leave within 12–24 months). If you repay a joining bonus, you can claim the repaid amount as a deduction in that financial year to recover the tax you paid on it.
NPS 80CCD(2) is the best bonus tax hack
Employer NPS contribution under Section 80CCD(2) is exempt even in the new tax regime. Up to 14% of basic can be contributed by employer to NPS tax-free. If your bonus is large and you're in a 20%+ slab, ask HR to route part of the bonus as employer NPS contribution.
Example: ₹12L salary + ₹2L bonus, how much tax?
Annual CTC ₹12L, new regime: taxable income ≈ ₹10.76L (below ₹12L) → zero tax.
Add ₹2L bonus: total taxable ≈ ₹12.76L. Amount above ₹12L = ₹76,000 × 15% = ₹11,400 tax + 4% cess = ₹11,856.
Net bonus after tax: ₹2,00,000 − ₹11,856 = ₹1,88,144. Effective bonus tax rate: 5.9%.
New regime vs old regime for bonus income
Which regime gives higher net payout on the same bonus?
| Factor | New Regime | Old Regime |
|---|---|---|
| Zero-tax threshold | ₹12.75L gross (salaried) | ~₹5.5L (basic deductions only) |
| Slab at ₹15–20L taxable income | 20% on excess over ₹16L | 30% flat on excess over ₹10L |
| Bonus deductions available | 80CCD(2) only | 80C, 80D, HRA, Home Loan |
| Best when | Deductions < ₹3.5L | Deductions > ₹4L |
| For most bonus earners | New regime wins | Only wins with large deductions |
Questions
Frequently asked questions
Everything about bonus taxation in India.
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