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Compute Indian income tax

compute_tax
Read-only

Compute Indian income tax for a fiscal year by selecting tax regime (new/old), entering salary, other income, capital gains, and deductions to get tax liability including surcharge and cess.

Instructions

Deterministic Indian income tax computation for a fiscal year. Handles new/old regime slabs, standard deduction, 87A rebate with marginal relief, 111A/112A capital gains rates, surcharge (with the 15% cap on gains), and 4% cess. All arithmetic is done in code from a versioned rule pack -- never estimated.

Input Schema

TableJSON Schema
NameRequiredDescriptionDefault
fyNoFiscal year, e.g. '2025-26' (AY 2026-27)2025-26
regimeYesTax regime. 'new' (115BAC) is the default regime since FY 2023-24.
ageBandNoAge band: below60, senior (60-79), superSenior (80+). Affects old-regime exemption only.below60
ltcg112ANoLong-term capital gains under section 112A in INR, BEFORE the 1.25L exemption
stcg111ANoShort-term capital gains under section 111A (listed equity, STT paid) in INR
deductionsNoOld regime only: total Chapter VI-A deductions (80C, 80D, ...) in INR. Ignored under the new regime.
otherIncomeNoOther normal-rate income in INR (interest, net rent, etc.)
salaryIncomeNoGross salary income in INR, before standard deduction
Behavior5/5

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

The description adds significant behavioral context beyond the readOnlyHint annotation: it confirms determinism ('Deterministic', 'never estimated'), source of logic ('code from a versioned rule pack'), and coverage of all major Indian tax rules. This fully informs the agent of the tool's behavior and limitations.

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 a compact paragraph with five sentences, each contributing distinct information. No redundant or filler content. The purpose and key features are front-loaded, making it efficient for an AI agent to parse.

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

Completeness4/5

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

Given the tool's complexity (8 parameters, no output schema) and the annotation richness, the description adequately covers computation logic and inputs. However, it omits any mention of the output format (e.g., whether it returns a single tax amount or a breakdown), which is a minor gap. Overall, it is nearly complete.

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

Parameters4/5

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

Schema description coverage is 100%, so baseline is 3. The description adds value by explaining how parameters interact (e.g., 'all arithmetic is done in code', 'Handles new/old regime slabs...'), which complements the individual parameter descriptions. It clarifies the role of deductions (old regime only) and capital gains rates, providing semantic depth beyond the schema.

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 starts with 'Deterministic Indian income tax computation for a fiscal year', which is a specific verb+resource combination. It enumerates handled features (regime slabs, standard deduction, 87A rebate, capital gains, surcharge, cess), making the purpose unmistakable and distinct from sibling tools like compare_regimes and compute_hra.

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

Usage Guidelines3/5

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

The description states what the tool does but does not explicitly provide when-to-use or when-not-to-use guidance relative to siblings. While the purpose is clear, there is no exclusionary context (e.g., 'use compare_regimes for regime comparisons'). The implied usage is present, but formal guidelines are absent.

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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