1. What is the New Tax Regime 2024-25?

The new tax regime for 2024-25 offers lower tax rates but without most deductions and exemptions. It's optional, and taxpayers can choose between the old and new regimes based on their financial situation.

2. How Does the Calculator Work?

The calculator computes:

• Income Tax: Based on new regime slab rates for FY 2024-25
• Professional Tax: State-specific tax deducted by employers

3. Importance of Tax Calculation

Details: Accurate tax calculation helps in financial planning, understanding take-home salary, and making informed decisions about tax regime selection.

4. Using the Calculator

Tips: Enter your gross annual income and select your state of employment. The calculator will show income tax (new regime) and professional tax applicable.

5. Frequently Asked Questions (FAQ)

Q1: Should I choose new or old tax regime?
A: New regime is better if you don't have many deductions. Old regime may be better if you have significant investments (like HRA, 80C deductions).

Q2: Is professional tax same across India?
A: No, professional tax varies by state with different slabs and maximum amounts.

Q3: Are there cess and surcharges in new regime?
A: Yes, 4% health and education cess is applicable on the calculated tax amount.

Q4: What's the rebate under section 87A?
A: For income up to ₹7 lakh, full tax rebate is available in new regime (no tax payable).

Q5: Can I switch regimes every year?
A: Yes, you can choose different regimes each financial year as per your situation.