Question 1

Which is better: New or Old tax regime for FY 2024-25?

Accepted Answer

It depends on your deductions. New regime has lower slab rates and ₹50,000 standard deduction for salaried/Pensioners, but most deductions like 80C/80D/HRA are not allowed. If your total eligible deductions are high, Old could be better. This calculator compares both instantly.

Question 2

Is 87A rebate available under both regimes?

Accepted Answer

Yes. Under New regime, if total income is up to ₹7,00,000, tax after rebate is ₹0. Under Old regime, if total income is up to ₹5,00,000, tax after rebate is ₹0.

Question 3

Does the New regime allow 80C/80D or HRA?

Accepted Answer

No. The New regime disallows most deductions except standard deduction for salaried/pensioners. This tool disables 80C/80D/HRA under New regime automatically.

Question 4

How is HRA exemption calculated?

Accepted Answer

HRA exemption (Old regime only) is the least of: (1) Actual HRA received, (2) Rent paid minus 10% of basic salary, (3) 50% of basic for metro cities (40% for non-metro).

Question 5

Is surcharge included?

Accepted Answer

You can toggle surcharge. For high income, surcharge applies on tax (plus cess). Highest surcharge under New regime is 25%; under Old it can go up to 37%. This tool estimates based on thresholds.

Income Tax Calculator (India) - FY 2024-25

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Notes