Question 1

What is the difference between Old and New Tax Regime?

Accepted Answer

The Old Regime allows deductions like 80C, HRA, home loan interest but has higher tax rates. The New Regime (FY 2024-25) has lower rates and ₹75,000 standard deduction but no other deductions. Choose based on your total deductions.

Question 2

How is PF calculated from salary?

Accepted Answer

Employee PF is 12% of Basic salary (capped at ₹15,000 basic). Employer also contributes 12%, but 8.33% goes to EPS pension scheme and 3.67% to EPF. Total EPF contribution is 15.67% of basic.

Question 3

Is professional tax deductible?

Accepted Answer

Yes, professional tax paid (up to ₹2,500/year) is deductible from income under both old and new tax regimes. It varies by state, with Maharashtra charging ₹2,500/year.

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