u/Affectionate_Ant7680

at 10 lakh:

In regime (1), tax = 20% of 10 lakh = 2 lakh.

In regime (2), first deduct 2 lakh, so taxable income becomes 8 lakh. 25% of 8 lakh = 2 lakh.

So both regimes give the same tax. Nothing makes regime (1) attractive here — they are equal.

At 12 lakh:

Regime (1): 20% of 12 lakh = 2.4 lakh

Regime (2): Taxable income = 12 − 2 = 10 lakh 25% of 10 lakh = 2.5 lakh

Now regime (1) gives lower tax, so this is where it actually becomes attractive.

Therefore, the correct option should be 12 lakh.

Do you all agree?