Surcharge thresholds (FY 2024-25)
| Total income | Old regime | New regime |
|---|---|---|
| Up to ₹50 lakh | Nil | Nil |
| ₹50 L – ₹1 Cr | 10% | 10% |
| ₹1 Cr – ₹2 Cr | 15% | 15% |
| ₹2 Cr – ₹5 Cr | 25% | 25% |
| Above ₹5 Cr | 37% | 25% (capped) |
Surcharge is applied on the tax, not on income. Marginal relief is granted near each threshold to prevent the increase in tax from exceeding the increase in income that crossed the threshold.
Why the bonus might net less than expected
- Slab jump — bonus pushes income from a lower slab into a higher one, so most of it is taxed at the higher rate
- Surcharge crossing — bonus crosses the ₹50 L / 1 Cr / 2 Cr / 5 Cr threshold, adding surcharge
- TDS over-deduction — employers often apply 30% TDS on bonus assuming top slab; you reclaim excess at filing
- Lost rebate — if income was just under the 87A rebate cutoff, the bonus may eliminate the rebate entirely
FAQ
Can I save tax by deferring the bonus?
Sometimes — if a deferral pushes the bonus into a year where your other income is lower (e.g., between jobs, sabbatical, retirement year). For most full-time employees, deferral isn't possible.
Is joining bonus / sign-on bonus taxed differently?
No. Sign-on bonus is fully taxable as salary in the year received, regardless of any clawback period. If you later repay it (because you left), you can claim relief in that future year.
What about ESOP or RSU vesting?
ESOPs / RSUs are taxed as perquisite (salary) at exercise / vesting at FMV minus exercise price. This calculator handles cash bonus only — ESOP tax has additional capital-gains consequences at sale.