Question 1

Which tax regime is better for ₹12 lakh income?

Accepted Answer

For ₹12 lakh income with no deductions, the new tax regime is better as you pay ₹0 tax (₹60,000 rebate applies). With substantial deductions (₹2L+ in 80C, HRA, etc.), the old regime might save more. Use our calculator to compare both options for your specific case.

Question 2

What is the tax on ₹15 lakh salary in India?

Accepted Answer

Under new regime (FY 2025-26): ₹1,50,000 base tax + 4% cess = ₹1,56,000. Under old regime with ₹1.5L in 80C: ₹1,87,500 base tax + 4% cess = ₹1,95,000. New regime is better in this case. Actual tax varies based on deductions.

Question 3

How to calculate income tax in India FY 2025-26?

Accepted Answer

Enter your gross annual income, choose tax regime (old/new), add deductions if old regime (80C, 80D, HRA), and our calculator instantly shows: taxable income, tax breakdown by slab, cess (4%), total tax, and monthly deduction. It compares both regimes to find the better option.

Question 4

What is Section 80C deduction limit?

Accepted Answer

Section 80C allows maximum deduction of ₹1,50,000 per year in the old tax regime. Eligible investments include PPF, EPF, ELSS, NSC, 5-year FD, life insurance premium, home loan principal, tuition fees. Not available in new regime.

Question 5

Can I switch between old and new tax regime?

Accepted Answer

Yes, salaried individuals can switch between old and new regime every financial year at the time of filing ITR. Business/professional income taxpayers can switch only once in their lifetime. Choose based on your deductions each year.

Question 6

Is HRA available in new tax regime?

Accepted Answer

No, HRA exemption is not available in the new tax regime. If you receive significant HRA and pay high rent, the old regime might be more beneficial. Use our calculator to compare both regimes with your actual HRA and rent details.

Question 7

What is the tax rebate under Section 87A?

Accepted Answer

Section 87A provides tax rebate: New regime - ₹60,000 rebate if taxable income ≤ ₹12 lakh (effectively zero tax). Old regime - ₹25,000 rebate if taxable income ≤ ₹7 lakh. Rebate is on calculated tax, not on income.

Question 8

How is health and education cess calculated?

Accepted Answer

Health and Education Cess is 4% of the total income tax calculated. For example, if your tax is ₹1,00,000, cess will be ₹4,000, making total tax ₹1,04,000. Cess applies to both old and new regimes.

Annual Income (₹)	New Regime Tax	Old Regime Tax	Better Regime	Break-even Deductions
₹5,00,000	₹0	₹0	Both	—
₹7,00,000	₹0	₹32,500	New	₹1.5L
₹10,00,000	₹46,800	₹1,08,160	New	₹4.5L
₹12,00,000	₹0	₹2,20,000	New	₹6.5L
₹15,00,000	₹2,10,000	₹3,16,000	New	₹7.5L
₹20,00,000	₹4,96,000	₹5,10,000	New	₹7.1L
₹25,00,000	₹7,50,000	₹7,82,000	Similar	₹8.0L

Stock Market Income (Optional)

Deductions & Exemptions (For Old Regime)