Question 1

Which is better: Old tax regime or New tax regime?

Accepted Answer

It depends on your deductions. If you claim significant deductions (80C, 80D, HRA, etc.) totalling more than Rs 3-4 lakh, the old regime may save more tax. If you have minimal deductions, the new regime with its lower slab rates and Rs 75,000 standard deduction is usually better. Use this calculator to compare both.

Question 2

What deductions are available under Section 80C?

Accepted Answer

Section 80C allows deductions up to Rs 1.5 lakh per year for investments in EPF, PPF, ELSS mutual funds, 5-year tax-saving FD, NSC, life insurance premiums, home loan principal repayment, tuition fees (up to 2 children), and Sukanya Samriddhi Yojana. These deductions are available only under the old tax regime.

Question 3

What is Section 80CCD(1B) for NPS?

Accepted Answer

Section 80CCD(1B) provides an additional deduction of up to Rs 50,000 for contributions to the National Pension System (NPS). This is over and above the Rs 1.5 lakh limit of Section 80C. This deduction is available only under the old tax regime and is one of the most effective tax-saving tools for salaried individuals.

Question 4

How much can I claim under Section 80D?

Accepted Answer

Under Section 80D, you can claim up to Rs 25,000 for health insurance premiums paid for yourself, spouse, and children. An additional Rs 25,000 can be claimed for parents (Rs 50,000 if parents are senior citizens). Preventive health check-up expenses up to Rs 5,000 are included within these limits.

Question 5

What is the standard deduction in old and new regimes?

Accepted Answer

Under the new tax regime (FY 2026-27), the standard deduction is Rs 75,000. Under the old regime, the standard deduction is Rs 50,000. The new regime also offers a rebate for income up to Rs 12 lakh (taxable income after standard deduction), effectively making income up to Rs 12.75 lakh tax-free.

Question 6

What are the new regime tax slabs for FY 2026-27?

Accepted Answer

The new regime slabs for FY 2026-27 are: 0-4L: nil, 4-8L: 5%, 8-12L: 10%, 12-16L: 15%, 16-20L: 20%, 20-24L: 25%, above 24L: 30%. With the Rs 75,000 standard deduction and Section 87A rebate for income up to Rs 12 lakh, effective tax-free income is Rs 12.75 lakh.

Question 7

Can I switch between old and new regime every year?

Accepted Answer

Salaried individuals can choose between old and new regimes each financial year when filing their ITR. However, individuals with business income can switch only once from the new regime to the old regime. The default regime is the new regime unless you specifically opt for the old one.

Tax Saving Calculator

Frequently Asked Questions

Tax Saving Calculator

Frequently Asked Questions