Question 1

Which tax regime is better for FY 2025-26 (AY 2026-27)?

Accepted Answer

The optimal tax regime depends on your total deductions. Under the New Tax Regime (Section 115BAC), standard deduction is ₹75,000 and taxable income up to ₹12,00,000 is tax-free via Section 87A rebate. If your total eligible deductions under Chapter VI-A (80C, 80D, HRA, home loan interest) exceed the breakeven threshold (typically ₹3.75L - ₹4.5L), the Old Regime may save you more money. TaxPlanner calculates both deterministically to show your exact savings.

Question 2

What is the Section 87A rebate in the New Regime for FY 2025-26?

Accepted Answer

For FY 2025-26 (AY 2026-27), salaried individuals with taxable income up to ₹12,00,000 pay zero income tax under the New Tax Regime due to the Section 87A statutory rebate, with marginal relief provisions for income slightly above ₹12 Lakhs.

Question 3

What is Zero LLM Tax Arithmetic?

Accepted Answer

Large Language Models often produce rounding errors when calculating tax slabs. TaxPlanner enforces a strict architecture where all slab calculations, rebates, and cess are computed by a deterministic, audited Python engine, while AI is strictly used for conversational explanations.