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India income tax (regime comparison)

indian_income_tax
Read-onlyIdempotent

Compute Indian personal income tax liability comparing the Union Budget 2025-26 New Tax Regime (with Section 87A rebate and ₹75,000 standard deduction) against the Old Tax Regime.

Behavior: Deterministic, idempotent calculation with zero external side effects. Applies statutory slab rates for FY 2025-26 (AY 2026-27): ₹0-4L Nil, ₹4-8L 5%, ₹8-12L 10%, ₹12-16L 15%, ₹16-20L 20%, ₹20-24L 25%, above ₹24L 30%. Applies full Section 87A rebate if taxable income is up to ₹12 Lakhs, adds 4% Health & Education Cess, and returns side-by-side comparison of old vs new regime, and states which one gives the lower tax for the inputs given.

Usage Guidelines: Use when computing personal income tax or payroll deductions for Indian residents and salaried professionals. Do not use for US federal/state taxes; use contractor_parity or solo_401k_shield instead.

Input Schema

TableJSON Schema
NameRequiredDescriptionDefault
ctcYesAnnual Cost-to-Company (CTC) / Gross taxable salary in Indian Rupees (INR ₹). Must be a positive number.
as_of_dateYesCivil date YYYY-MM-DD. Selects the rule pack in force on that date. Required: the engine will not assume a date.
isSalariedNoWhether the taxpayer is a salaried employee (eligible for statutory ₹75,000 standard deduction under the New Regime).

Schema Changelog

Changes observed during successful MCP inspections.

  1. Changed2 schema fields changed
    • addedInput schema / properties / as_of_date
      Added value: +{
      +  "description": "Civil date YYYY-MM-DD. Selects the rule pack in force on that date. Required: the engine will not assume a date.",
      +  "example": "2026-09-26",
      +  "pattern": "^\\d{4}-\\d{2}-\\d{2}$",
      +  "type": "string"
      +}
    • changedInput schema / required
      Previous value: -[
      -  "ctc"
      -]New value: +[
      +  "ctc",
      +  "as_of_date"
      +]
  2. Changed2 schema fields changed
    • changedInput schema / properties / ctc / description
      Previous value: -"Annual Cost-to-Company / Gross Salary in INR (₹)"New value: +"Annual Cost-to-Company (CTC) / Gross taxable salary in Indian Rupees (INR ₹). Must be a positive number."
    • changedInput schema / properties / isSalaried / description
      Previous value: -"Whether taxpayer is salaried (eligible for ₹75k standard deduction)"New value: +"Whether the taxpayer is a salaried employee (eligible for statutory ₹75,000 standard deduction under the New Regime)."
  3. First observed

TDQS

A4.7/5.0
Behavior5/5

Does the description disclose side effects, auth requirements, rate limits, or destructive behavior?

Annotations already mark readOnly, idempotent, and non-destructive, and the description reinforces this with 'Deterministic, idempotent calculation with zero external side effects.' It goes beyond annotations by disclosing exact slab rates, the 87A rebate threshold, the 4% cess, and that it returns a side-by-side comparison plus a lower-tax determination.

Agents need to know what a tool does to the world before calling it. Descriptions should go beyond structured annotations to explain consequences.

Conciseness5/5

Is the description appropriately sized, front-loaded, and free of redundancy?

The description is well-structured with clear purpose, Behavior, and Usage Guidelines sections. It is front-loaded with the main purpose, and the slab-rate detail is dense but earns its place as necessary behavioral transparency. There is no filler or redundancy.

Shorter descriptions cost fewer tokens and are easier for agents to parse. Every sentence should earn its place.

Completeness5/5

Given the tool's complexity, does the description cover enough for an agent to succeed on first attempt?

For a complex tax-comparison tool with no output schema, the description is remarkably complete: it specifies the assessment year, slab rates, rebate, standard deduction, cess, output behavior, and excluded use cases. An agent has enough information to invoke the tool correctly and interpret what it will return.

Complex tools with many parameters or behaviors need more documentation. Simple tools need less. This dimension scales expectations accordingly.

Parameters3/5

Does the description clarify parameter syntax, constraints, interactions, or defaults beyond what the schema provides?

Schema description coverage is 100%, so the parameters are already well documented in the schema. The description adds useful tax context but does not provide additional parameter-specific meaning beyond what the schema already states for ctc, as_of_date, and isSalaried.

Input schemas describe structure but not intent. Descriptions should explain non-obvious parameter relationships and valid value ranges.

Purpose5/5

Does the description clearly state what the tool does and how it differs from similar tools?

The description opens with a specific action and resource: 'Compute Indian personal income tax liability comparing... the New Tax Regime ... against the Old Tax Regime.' It names concrete statutory details (Section 87A rebate, ₹75,000 standard deduction, FY 2025-26 slabs), clearly differentiating it from tax siblings like tds, advance_tax, and tax_in.

Agents choose between tools based on descriptions. A clear purpose with a specific verb and resource helps agents select the right tool.

Usage Guidelines5/5

Does the description explain when to use this tool, when not to, or what alternatives exist?

It provides explicit 'Use when computing personal income tax or payroll deductions for Indian residents and salaried professionals' guidance. It also gives a clear exclusion and alternative: 'Do not use for US federal/state taxes; use contractor_parity or solo_401k_shield instead.' This leaves little ambiguity about when to invoke the tool.

Agents often have multiple tools that could apply. Explicit usage guidance like "use X instead of Y when Z" prevents misuse.

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