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Good news: If your total income is ₹5 lakh or below, you pay ZERO tax under both old and new regimes thanks to the rebate under Section 87A.
Income up to ₹7 lakh is effectively tax-free due to rebate. So at ₹5 lakh, your tax = ₹0.
With standard deduction of ₹50,000, taxable income = ₹4.5 lakh. With 87A rebate, tax = ₹0.
If you earn slightly more than ₹5 lakh, invest in 80C (ELSS, PPF) to bring taxable income below ₹5 lakh and pay zero tax.
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