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 uses the following formula:

Where:

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

Explanation: The calculator first computes income tax using new regime slab rates, then adds state-specific professional tax.

3. Importance of Tax Calculation

Details: Accurate tax calculation helps in financial planning, budgeting, and ensuring compliance with tax laws. The new regime may benefit those who don't claim many deductions.

4. Using the Calculator

Tips: Enter your annual gross income and select your state of employment. The calculator will show monthly tax liability under the new regime.

5. Frequently Asked Questions (FAQ)

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

Q2: Are deductions available in new regime?
A: Only standard deduction of ₹50,000 is available. Other deductions like 80C, HRA are not allowed.

Q3: How does professional tax vary?
A: Professional tax is state-specific, typically ranging ₹200-₹250 per month (₹2400-₹3000 annually).

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

Q5: Are there any age-based benefits?
A: No, the new regime doesn't provide additional benefits for senior citizens unlike the old regime.