1. What is the New Tax Regime 2025?

The new tax regime for 2025 offers simplified tax slabs with lower rates but fewer deductions. It's optional for taxpayers to choose between the old and new regimes.

2. How Does the Calculator Work?

The calculator computes:

Where:

• Income Tax — Calculated based on new regime slabs
• Professional Tax — Varies by state in India

3. Tax Slabs for New Regime 2025

New Regime Tax Slabs:

• Up to ₹3,00,000: Nil
• ₹3,00,001-₹6,00,000: 5%
• ₹6,00,001-₹9,00,000: 10%
• ₹9,00,001-₹12,00,000: 15%
• ₹12,00,001-₹15,00,000: 20%
• Above ₹15,00,000: 30%

4. Professional Tax Rates

State-wise Professional Tax:

• Maharashtra: ₹200/month (₹2,500 if income > ₹7.5L)
• Karnataka: Nil (₹2,500 if income > ₹15L)
• Tamil Nadu: Nil (₹2,500 if income > ₹21L)
• Other states: Varies

5. Frequently Asked Questions (FAQ)

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

Q2: Are there surcharges in new regime?
A: Yes, same surcharge rules apply as old regime for income above ₹50L.

Q3: Can I switch regimes every year?
A: Yes, you can choose different regimes each financial year.

Q4: Is professional tax deductible?
A: Yes, professional tax is deductible under both regimes.

Q5: When is professional tax deducted?
A: Typically deducted monthly by employer and paid to state government.