This script determines:
- When you're made an offer for a given CTC, how much will you take home every month?
- If you want a certain amount of take-home pay every month, what CTC should you ask for?
This is for Indians.
This script handles:
- Differing tax treatments for employees and consultants. The latter are eligible for presumptive taxation under section 44AD.
- Health and education cess
- PF and pension
- Section 80C investments
- Professional tax
Bonus points if the website copy overlaps well with search keywords :)
About basic, yes, that's a pain.
I built this for my needs. If you want it to handle HRA, or LTA, or income 1 crore and above, etc, that's an entirely reasonable point of view, and I'd welcome a pull request if you have the time.
The script does have a field for EMPLOYEE_TAX_DEDUCTION. It defaults to 1.6 lac, assuming 1.5 lac for 80C and 10K for the rest (like medical insurance under 80D or whatever). But you can change it to whatever number you want to include other exemptions like HRA and LTA.
I think some things like PF and HRA are calculated based on basic income, but I was able to approximate the calculation without bringing basic income into account. Salary for the purpose of PF is limited to 15K anyway.
Again, enhancements welcome.
When I was in India a number of years ago, this term got thrown around a lot. I had no idea what it meant.
It basically means what is the total cost to a company for hiring you. Not just the salary they pay you but other costs like insurance, stock options, other benefits etc.,
44AD is for businesses and has a presumptive taxable income of 8% of gross income. 44ADA is for (eligible) individuals and has a presumptive taxable income of 50% of gross income.
According to my CA, individuals might be eligible for both depending on what they do. It's not just for businesses. If you're providing a service, like a freelance programmer, it's 50%. But if you're building your own product, it's 8%. Or some such distinction.
In any case, the script supports both; just change the parameter.
I am considering open sourcing this project so that there could be a search engine like this for other countries.
I edited my first comment from "every" to "other". Thank you.
One suggestion: could you separate the code and tax slab configuration, different files.
Actually, separating out the things should be modified from things that shouldn't would be a significant improvement. Like:
# Section 1: Configuration: Change this as appropriate:
# Section 2: Logic: Don't change this: