1. What is the Tax Regime Comparison?

The calculator compares tax liability under India's new (optional) and old tax regimes. The new regime offers lower tax rates but removes most deductions and exemptions available under the old regime.

2. How Does the Calculator Work?

The calculator uses the current tax slabs for both regimes:

New Regime Slabs (FY 2023-24):

• Up to ₹3 lakh: 0%
• ₹3-6 lakh: 5%
• ₹6-9 lakh: 10%
• ₹9-12 lakh: 15%
• ₹12-15 lakh: 20%
• Above ₹15 lakh: 30%

Old Regime Slabs (FY 2023-24):

• Up to ₹2.5 lakh: 0%
• ₹2.5-5 lakh: 5%
• ₹5-10 lakh: 20%
• Above ₹10 lakh: 30%

3. Importance of Tax Calculation

Details: Choosing the right tax regime can significantly impact your take-home salary. The new regime may benefit those with fewer investments/deductions, while the old regime may be better for those who can claim substantial deductions.

4. Using the Calculator

Tips: Enter your taxable income (after standard deduction if applicable) and select whether to compare both regimes or calculate a specific one. The calculator shows the tax amount and difference between regimes.

5. Frequently Asked Questions (FAQ)

Q1: Which regime should I choose?
A: It depends on your investments and eligible deductions. If your deductions exceed ₹1.5-2 lakh, the old regime might be better.

Q2: Can I switch regimes every year?
A: Yes, salaried individuals can choose each year which regime to follow.

Q3: What deductions are not available in new regime?
A: HRA, LTA, 80C, 80D, and most other Chapter VI-A deductions are not available in the new regime.

Q4: Is standard deduction available in new regime?
A: Yes, ₹50,000 standard deduction is available in both regimes for salaried individuals.

Q5: Are there any cess or surcharges?
A: Yes, 4% health and education cess is added to the calculated tax in both regimes.