Question 1

How is zero tax calculated up to ₹12.75 Lakhs under Budget 2025–26?

Accepted Answer

Under the Union Budget 2025–26 New Regime, the standard deduction for salaried employees is ₹75,000. For a gross salary of ₹12,75,000, subtracting ₹75,000 leaves ₹12,00,000 taxable income. Under Section 87A, 100% tax rebate is granted up to ₹12 Lakhs taxable income, resulting in ₹0 tax payable.

Question 2

Which regime is better: Old or New Tax Regime in FY 2025-26?

Accepted Answer

For most taxpayers without massive home loan interest and deductions above ₹4.25 Lakhs, the New Regime is significantly more beneficial due to lower slab rates and the ₹12.75L zero-tax threshold. Our side-by-side comparison engine shows your exact break-even threshold.

Question 3

What deductions can be claimed in the Old Tax Regime?

Accepted Answer

Old Regime allows Section 80C (up to ₹1.5L for EPF, PPF, ELSS, LIC), Section 80D (health insurance up to ₹1L), Section 80CCD(1B) NPS (₹50k), Section 24b Home Loan Interest (up to ₹2L), and HRA rent exemption.

Question 4

Is in-hand take-home salary calculated with EPF and Professional Tax?

Accepted Answer

Yes. The salary slip engine deducts Employee PF (12% of basic), state Professional Tax (₹200/mo), and estimated monthly TDS to compute your exact net credit take-home salary.

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