The old tax regime refers to the traditional method of calculating income tax based on the prevailing tax laws and rules.
The new tax regime, on the other hand, represents a simplified tax structure introduced by the government to streamline the tax system and offer a lower tax rate without the benefit of most deductions and exemptions.
The following calculations are common for both the old and new regimes:
- Rebate under section 87A: Taxpayers with an annual income of up to Rs 5 lakh will continue to get the tax rebate of Rs 12,500/- on the calculated tax.
- Health, Education Cess, and Surcharge Rates remain the same.
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