Frequently Asked Questions (FAQs)
Find answers to commonly asked questions about tax slabs, deductions, and exemptions.
Which is better: Old or New Tax Regime?▼
It depends entirely on your eligible deductions. The New Tax Regime offers lower slab rates but eliminates exemptions. If you claim significant exemptions—such as House Rent Allowance (HRA), Section 80C investments (PF, ELSS, LIC), Section 80D medical insurance, and Home Loan interest—the Old Regime might save you more money. If you don't invest in tax-saving instruments, the New Regime is typically the optimal and simpler choice.
What is the Standard Deduction for FY 2025-26 and FY 2026-27?▼
Salaried individuals receive an automatic flat Standard Deduction:
• **Old Tax Regime**: ₹50,000
• **New Tax Regime**: ₹75,000 (increased in recent union budgets to promote adoption of the New Tax slabs).
Can I claim HRA or Home Loan Interest under the New Tax Regime?▼
No. Popular exemptions like House Rent Allowance (HRA), Section 24(b) Home Loan Interest on self-occupied properties, and Chapter VI-A investments (80C, 80D, 80E) are **disallowed** under the New Tax Regime. They are exclusively available if you opt for the Old Tax Slabs.