Salary Bonus Calculator India — Performance & Statutory Bonus with TDS
Enter your annual salary and bonus amount. Get exact take-home after TDS — performance bonus, statutory bonus under the Payment of Bonus Act, and marginal tax impact shown side by side.
Minimum: 8.33% of basic salary.
Maximum: 20% of basic salary.
Computed on salary capped at ₹7,000/mo or minimum wage.
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How Bonus TDS Gets Calculated in India
Performance bonuses in India attract TDS at the marginal income tax rate applicable to the employee's total annual income including the bonus. Employers calculate TDS using one of two methods: the marginal rate method (apply the slab rate applicable to total income directly to the bonus), or the annualised method (add the bonus to the annualised salary, compute full-year tax, subtract tax already deducted on regular salary, deduct the difference from the bonus).
The annualised method produces a more accurate TDS figure when bonuses push income across a slab boundary. Under the New Regime for FY 2025–26, the 20% slab begins at ₹12 lakh and the 30% slab at ₹15 lakh. An employee earning ₹11.5 lakh in regular salary who receives a ₹1 lakh bonus crosses the 20% threshold — correct TDS calculation must account for the partial slab crossover, not simply apply 20% to the whole bonus.
Statutory bonus under the Payment of Bonus Act applies to employees whose basic salary plus DA does not exceed ₹21,000/month. The Act mandates a minimum of 8.33% and permits a maximum of 20% of basic salary (or ₹7,000/month, whichever is higher) as the computation base. Statutory bonus also attracts income tax — it forms part of gross salary and gets taxed at the applicable slab rate.