Question 1

What is the difference between the old and new tax regime?

Accepted Answer

The new regime offers lower tax rates but does not allow most deductions (80C, 80D, HRA, etc.). The old regime has higher rates but lets you reduce taxable income through deductions and exemptions. Which is better depends on how many deductions you can claim.

Question 2

Who should choose the new tax regime?

Accepted Answer

If your total eligible deductions (80C, HRA, 80D, home loan interest, etc.) are below roughly ₹3.75 lakh for a ₹15 lakh income, the new regime typically results in lower tax. If you have a home loan and invest the full ₹1.5 lakh in 80C instruments, the old regime is usually better.

Question 3

What is the standard deduction for FY 2024-25?

Accepted Answer

Under the new regime, the standard deduction is ₹75,000. Under the old regime, it is ₹50,000. Both apply to salaried individuals and pensioners automatically without any proof of investment.

Question 4

What is the rebate under Section 87A?

Accepted Answer

Under the new regime, if your taxable income (after the standard deduction) is ₹7 lakh or less, you pay zero tax because of the full rebate under Section 87A. Under the old regime, the rebate applies when taxable income is ₹5 lakh or less.

Question 5

Is the 4% cess included in the tax shown?

Accepted Answer

Yes. The Health and Education Cess of 4% is added on top of the income tax computed from the slabs. The total tax shown in this calculator already includes the cess, so the figure is your actual outflow.

Income Tax Calculator

Frequently asked questions

Income Tax Calculator

Frequently asked questions