1. What is Part Time Income Tax?

Part time income tax refers to the tax levied on income earned from part-time work or freelance activities during the Assessment Year 2024-25. It's calculated based on your income and the applicable tax rate.

2. How Does the Calculator Work?

The calculator uses the simple formula:

Where:

• \( Income \) — Your part-time income in INR
• \( Tax\ Rate \) — Applicable tax rate as a decimal (e.g., 0.15 for 15%)

Explanation: The calculator multiplies your income by the tax rate to estimate your tax liability.

3. Importance of Tax Calculation

Details: Accurate tax estimation helps in financial planning and ensures compliance with tax regulations for part-time income.

4. Using the Calculator

Tips: Enter your income in INR and the applicable tax rate as a decimal (e.g., 0.30 for 30%). Both values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What tax rate should I use?
A: Use the applicable income tax slab rate for AY 2024-25 based on your total income.

Q2: Is TDS applicable on part-time income?
A: TDS may apply if payments exceed specified thresholds under Section 194J or other relevant sections.

Q3: Can I claim deductions on part-time income?
A: Yes, standard deductions under Chapter VI-A may apply if you meet the conditions.

Q4: How is this different from regular salary tax?
A: Part-time income is taxed similarly but may not have benefits like standard deduction available to salaried employees.

Q5: When should I pay tax on part-time income?
A: Advance tax may be required if your tax liability exceeds ₹10,000 in a financial year.