1. What is the Old Tax Regime?

The Old Tax Regime in India allows taxpayers to claim various deductions and exemptions under different sections of the Income Tax Act, resulting in lower taxable income but with more complex calculations.

2. How Does the Calculator Work?

The calculator uses the basic tax formula:

Where:

• \( Taxable\ Income \) — Income after all deductions and exemptions (₹)
• \( Old\ Regime\ Rate \) — Applicable tax rate (%)
• \( Rebates \) — Any applicable tax rebates (₹)

Explanation: The calculator applies the tax rate to your taxable income and subtracts any rebates you're eligible for.

3. Importance of Tax Calculation

Details: Accurate tax calculation helps in financial planning, ensures compliance with tax laws, and helps avoid penalties for underpayment.

4. Using the Calculator

Tips: Enter your taxable income after all deductions, the applicable tax rate (typically 5%, 20%, or 30%), and any rebates you qualify for.

5. Frequently Asked Questions (FAQ)

Q1: What's the difference between old and new tax regimes?
A: The old regime allows deductions but has higher rates, while the new regime has lower rates but fewer deductions.

Q2: How do I know which regime is better for me?
A: It depends on your income level and available deductions. Generally, those with many deductions benefit from the old regime.

Q3: What are common deductions in the old regime?
A: Section 80C (₹1.5L), HRA, medical insurance, home loan interest, and more.

Q4: Can I switch between regimes?
A: Salaried individuals can choose annually, while business/professionals must typically stick with their choice.

Q5: What are the current tax slabs under old regime?
A: Up to ₹2.5L: 0%, ₹2.5-5L: 5%, ₹5-10L: 20%, Above ₹10L: 30% (plus cess).