New Tax Regime (Default):

• Lower tax rates (0-30%)
• No deductions allowed (except standard deduction)
• Better for those with minimal investments
• Standard deduction: ₹75,000 for salaried
• Rebate up to ₹60,000 (income up to ₹12L)

Old Tax Regime:

• Higher tax rates (0-30%) but with deductions
• Deductions: 80C (₹1.5L), 80D (health), HRA, etc.
• Better for those with investments and high deductions
• Rebate only up to ₹12,500 (income up to ₹5L)
• No standard deduction

Long-Term Capital Gains (LTCG): Gains from assets held for specified period

• Listed Equity: Held ≥ 12 months → Taxed at 12.5% (₹1.25L exemption)
• Real Estate: Held ≥ 12 months (post July 2024) → Taxed at 12.5%
• Bonds: Held ≥ 36 months → Taxed at 12.5%

Short-Term Capital Gains (STCG): Assets held less than required period

• Taxed at applicable income tax slab rate
• No special exemptions or flat rates
• Added to total income and taxed progressively

Example: If you sell equity after 18 months earning ₹2L gain, LTCG Tax = (₹2L - ₹1.25L) × 12.5% = ₹9,375

Surcharge: Additional tax levied on high incomes, levied on basic tax (not income).

Surcharge Slabs:

• Below ₹50 Crore: 0% Surcharge
• ₹50 Crore - ₹1 Crore: 10% of tax
• ₹1 Crore - ₹2 Crore: 15% of tax
• Above ₹2 Crore: 25% of tax

Example: Income ₹75 Crore, Tax ₹20 Crore → Surcharge = ₹20 Cr × 10% = ₹2 Crore (Additional)

Note: Most salaried individuals don't pay surcharge as they're below ₹50 crore income.

Health & Education Cess: Additional 4% tax levied on the tax payable (including surcharge).

Key Points:

• Levied on all taxpayers wherever income tax is payable
• Calculated on basic tax + surcharge
• Purpose: Fund healthcare and education in rural/semi-urban areas
• Does not apply if tax payable is zero

Calculation:
Cess = (Basic Tax + Surcharge) × 4%

Example: Basic Tax ₹50,000, Surcharge ₹0 → Cess = ₹50,000 × 4% = ₹2,000

Choose NEW Regime if:

• You're a salaried individual with minimal deductions
• Your income is up to ₹15-20 Lakh
• You have simple financial life (rent to landlord, don't take HRA)
• You want simplicity without tracking deductions

Choose OLD Regime if:

• You have substantial investments (₹1.5L+ under 80C)
• You have medical insurance (80D deduction available)
• You are self-employed with business losses
• Your deductions exceed ₹2-3 Lakhs

Calculation Tip: Calculate both scenarios to see which saves more tax!

Senior Citizens (60-80 years):

• Basic Exemption Limit: ₹3,00,000 (vs ₹2,50,000 for others)
• Same tax rates as regular individuals
• Additional deductions available (medical insurance up to ₹50,000)
• No separate benefits under new regime (same as others)

Super Senior Citizens (80+ years):

• Basic Exemption Limit: ₹5,00,000
• Lower tax rates possible due to higher exemption
• Quarterly ITR filing may be exempted
• No surcharge below ₹50 crore

Note: All benefits are under OLD REGIME only. New regime has no age-based benefits.

For Salaried Individuals (FY 2025-26):

• Basic Exemption: ₹4 Lakh
• Standard Deduction: ₹75,000
• Tax Rebate u/s 87A: Up to ₹60,000 (income up to ₹12L)
• Effective Tax-Free Income: ₹12,75,000 (₹4L + ₹75K + rebate on excess)

Rebate Calculation (New Regime FY 2025-26):

If taxable income is ≤ ₹12,00,000:

Rebate = Minimum of (Basic Tax, ₹60,000)

Example: Income ₹10L, Tax ₹10,000 → Rebate = ₹10,000 (min of ₹10K & ₹60K) = Tax becomes ₹0

No: Once you choose a regime for a financial year (or default to new regime), you cannot change during that financial year. Change is effective from next financial year.

Post July 23, 2024: Indexation benefit has been removed for most assets. You can choose between 12.5% without indexation or 20% with indexation for real estate (only if held before July 23, 2024).

Mandatory ITR Filing: Even if your income is below exemption limit, you must file ITR if you:

• Have sales/turnover above ₹1 Cr
• Claim losses
• Have specified financial interests
• Are listed on TRAI/registered GST dealer

Voluntary Filing: It's beneficial to file even if income is below limit to get refund of TDS/advance tax paid.