1. What is Tax Difference Calculation?

The tax difference calculation compares the tax liability under the new slab rates versus the old slab rates for Financial Year 2024-25. This helps taxpayers understand the impact of tax regime changes on their finances.

2. How Does the Calculator Work?

The calculator uses a simple formula:

Where:

• \( \text{new\_slab\_tax\_fy2425} \) — Tax amount calculated under new slab rates
• \( \text{old\_slab\_tax\_fy2425} \) — Tax amount calculated under old slab rates
• \( \text{tax\_diff} \) — Difference between new and old tax amounts

Explanation: A positive result means higher tax under new slabs, while a negative result means tax savings.

3. Importance of Tax Comparison

Details: Comparing tax liabilities helps individuals make informed decisions about which tax regime to choose and understand the financial impact of tax policy changes.

4. Using the Calculator

Tips: Enter tax amounts calculated under both regimes in rupees. The calculator will show the difference, indicating whether you'll pay more or less under the new system.

5. Frequently Asked Questions (FAQ)

Q1: Which tax regime should I choose?
A: This depends on your income sources, deductions, and exemptions. Use this calculator after computing taxes under both regimes.

Q2: What if the difference is zero?
A: A zero difference means your tax liability remains unchanged regardless of which regime you choose.

Q3: Can I switch between regimes every year?
A: For salaried individuals, you can choose each year. For business/profession income, once you opt for new regime, you generally can't switch back.

Q4: Are there special cases not covered?
A: This calculator assumes standard cases. Special situations like capital gains, surcharges, or cess may require additional calculations.

Q5: How accurate is this calculator?
A: It provides exact difference based on your inputs. Ensure your tax calculations under both regimes are accurate before comparison.