Question 1

Which is better: old tax regime or new tax regime in 2026?

Accepted Answer

The new tax regime (default from FY 2023-24) offers lower tax rates and a standard deduction of Rs. 75,000, but no deductions like 80C, 80D, or HRA. The old regime is better if your total deductions exceed Rs. 3-4 lakh. Use our calculator to compare both regimes for your income.

Question 2

What is the basic exemption limit for income tax in India?

Accepted Answer

Under the new regime, income up to Rs. 3 lakh is exempt from tax. Under the old regime, the exemption is Rs. 2.5 lakh for individuals below 60, Rs. 3 lakh for senior citizens (60-80), and Rs. 5 lakh for super senior citizens (above 80).

Question 3

How is income tax calculated on salary?

Accepted Answer

Income tax on salary is calculated by first determining your gross salary, then subtracting exemptions (HRA, LTA) and deductions (80C, 80D, NPS) to arrive at taxable income. Tax is then computed based on the applicable slab rates, plus 4% health and education cess.

Question 4

What deductions are available under Section 80C?

Accepted Answer

Section 80C allows deductions up to Rs. 1.5 lakh per year for investments in PPF, ELSS mutual funds, NSC, tax-saving FDs (5-year lock-in), life insurance premiums, EPF contributions, home loan principal repayment, and children's tuition fees.

Income Tax Calculator

Income Tax Calculator