Old Regime: 0-2.5L (Nil), 2.5-5L (5%), 5-10L (20%), >10L (30%). New Regime: 0-3L (Nil), 3-6L (5%), 6-9L (10%), 9-12L (15%), 12-15L (20%), >15L (30%). Standard deduction of ₹50,000 applies to both regimes for salaried individuals.

Which tax regime should I choose - Old or New?

Choose Old Regime if you have significant deductions (>₹2.5L) like home loan interest, 80C investments, health insurance. Choose New Regime if you have minimal deductions or prefer lower tax rates without paperwork. The New Regime is now the default option.

What deductions are available under Section 80C?

Section 80C allows deductions up to ₹1.5 lakh for: EPF, PPF, life insurance premiums, ELSS mutual funds, NSC, 5-year FD, tuition fees, home loan principal repayment, SCSS, and Sukanya Samriddhi Yojana. These are only available in the Old Regime.

How is HRA exemption calculated?

HRA exemption is the minimum of: (1) Actual HRA received, (2) 50% of salary for metro cities or 40% for non-metros, (3) Rent paid minus 10% of salary. Salary includes basic pay + DA. This exemption is only available in the Old Regime.

What is the tax on income above ₹50 lakh and ₹1 crore?

Surcharge applies on income above ₹50 lakh: 10% (₹50L-1Cr), 15% (₹1Cr-2Cr), 25% (₹2Cr-5Cr), 37% (>₹5Cr). Additionally, 4% Health & Education Cess applies on total tax including surcharge. In New Regime, maximum surcharge is capped at 25%.

Can I switch between tax regimes?

Salaried individuals can switch between regimes each year when filing returns. Business income earners can switch only once - after opting for New Regime, they cannot go back to Old Regime. From FY 2023-24, New Regime is the default unless you specifically opt for Old Regime.