1. What is the New Tax Regime?

The new tax regime offers lower tax rates but removes most deductions and exemptions. It's optional for individuals to choose between the old and new regimes when filing taxes.

2. How Does the Calculator Work?

The calculator computes:

Where:

• Income Tax — Calculated based on new regime slab rates
• Professional Tax — Varies by state (Maharashtra, Karnataka, Tamil Nadu, etc.)

Explanation: The new regime has different tax slabs compared to the old regime, with no deductions for HRA, 80C, etc.

3. Importance of Tax Calculation

Details: Accurate tax estimation helps in financial planning and ensures compliance with Indian tax laws.

4. Using the Calculator

Tips: Enter your annual income in INR and select your state of employment. The calculator will show income tax under new regime and applicable professional tax.

5. Frequently Asked Questions (FAQ)

Q1: Should I choose new or old regime?
A: New regime benefits those with few deductions. Compare both options before deciding.

Q2: What's not allowed in new regime?
A: Most deductions (80C, 80D, HRA, etc.) and standard deduction are not available.

Q3: Is professional tax mandatory?
A: Yes, if your state levies it. Amount varies by state and income level.

Q4: Are cesses included in this calculation?
A: No, health and education cess (4%) would be additional on income tax.

Q5: What's the rebate under section 87A?
A: Not shown here, but available up to ₹12,500 for income ≤ ₹7 lakh under new regime.