Lump-Sum Income Tax Calculator

A lump-sum income is a one-time payment received during the year, such as a bonus, commission, arrears, incentive, or other additional taxable income.

ℹ️ Refer @ Guide on Exempt Income from IT Perspective for more information.

Yes. Taxable lump-sum amounts generally form part of your taxable income and can increase your overall tax liability. Bonus and similar salary-related amounts are treated as taxable income under the applicable provisions.

ℹ️ Refer @ Salary Income Guide for more information.

The additional income may push part of your income into a higher tax slab. This calculator compares the tax before and after adding the lump-sum amount and shows the resulting additional tax.

Enter your taxable income before adding the lump-sum amount. Do not enter the lump-sum amount in this field.

Family Enter the additional taxable amount you expect to receive, such as a bonus, incentive, commission, or arrears.

No. The bonus is added to your taxable income, and the applicable slab rates are applied to the resulting total income. Therefore, only the portion falling into a higher slab is taxed at that higher rate.

Additional Tax is the difference between your tax after adding the lump sum and your tax before adding it.

It is the estimated lump-sum amount remaining after subtracting the additional tax attributable to the lump-sum income.

The TDS rate on commission depends on the type of commission and the applicable section of the Income Tax Act. For example, commission or brokerage covered under Section 194H is generally subject to TDS at 2% under the rules applicable from 1 October 2024, subject to applicable conditions and thresholds. Other types of commission may be governed by different provisions.

For FY 2025–26 (AY 2026–27), a resident individual may qualify for a Section 87A tax rebate if their eligible total income does not exceed ₹12 lakh. However, commission income is not automatically tax-free. It must be included in the total taxable income, and TDS deducted on commission is generally available as a tax credit. The final tax liability depends on the nature of the commission income, applicable tax provisions, and eligibility for the rebate. Certain special-rate income may not qualify for the rebate.