Income Tax Slabs for FY 2024-25

In the current budget announced on 23rd July 2024, new income tax slabs have been introduced. There are changes in the income tax slabs rate. Below is a detailed comparison of tax slab rate changes as per the Budget 2024.

Income tax is a direct tax that you pay to the government. It is calculated as a percentage of your annual earnings and is used by the government to fund infrastructural development, pay public sector employees, finance public healthcare and defence departments, and so on. The Central Board of Direct Taxes (CBDT), a body responsible for managing taxes, levies taxes on individuals via a slab-based system. As per this, every taxpayer is liable to pay tax based on the income tax slab they fall under, at the rate prescribed by the government for each slab.

The income tax rates are progressive in nature, which means that they increase with an increase in your income. Further, the tax slabs in India can change over time depending on the announcements made during the Union Budget or via economic policy declarations. Therefore, it is important that you keep an eye on current developments to be aware of new income tax slabs, if any. To understand the concept of income tax slabs better, start by reading who is liable to pay income tax in India.

What is an Income Tax Slab?

Income Tax Slabs for Individual Taxpayers
In India, those earning an income are liable to pay income tax and fall under an income tax slab. For the purpose of tax payment, individual taxpayers are categorised as per their age. Further, each of these categories has its own tax slabs. Take a look at the 3 categories below.

• Resident individuals under 60 years of age
• Resident senior citizens over 60 years, but below 80 years of age
• Resident super senior citizens over 80 years of age

Income Tax Slabs for FY 2024-25 for New Tax Regime

Income Tax Slabs in Budget 2024

Income Tax Slab for Old Tax Regime

Old Tax vs New Tax Regime 2024

Tax Rates for HUFs (Resident or Non-Resident)

Additionally, the budget of 2024 has raised the limit for standard deductions from ₹50,000 to ₹75,000 under the new tax regime. This change is designed to provide additional financial relief to taxpayers.

Income Tax Rates of AOP / BOI / AJP

Income Tax Rate for a Domestic Company

New income tax slabs for FY 2024 for Senior Citizens

Below is the new income tax slabs for individuals between 60 and 80 years (senior citizens):

New income tax slabs for FY 2024 for Super Senior Citizens

Below are the new income tax slabs for individuals above 80 years (super senior citizens):

Heads of Income for Tax Purposes

For individual taxpayers, income is categorised into five slabs based on its source. These five categories are as follows.

• Salary Income: Monthly salary and pension
• Profits or Gains from Profession and Business: Income earned by self-employed individuals, businessmen, freelancers, contractors, professionals and life insurance agents
• Income from House Property: Rental income
• Capital Gains: Gains from selling a residential property, mutual fund units or shares
• Income from Other Sources: Interest earned from a savings account or a fixed deposit, lottery, etc.

To arrive at your total taxable income for a financial year, you are required to declare all income that you earn under various heads and then subtract any tax deductions that you are eligible for. Post this, you can calculate the total tax payable for the year by identifying the rate applicable to you using Bajaj Finserv income tax calculator. If the total tax that you pay for a financial year exceeds your tax liability, you can file for an income tax refund online. However, to do this, you are required to e-file your income tax return. To do so with ease, remember the following important dates.

• 31st January: Last date to declare investments and submit proof of the same
• 31st March: Last date to invest in vehicles that offer a deduction under Section 80C
• 31st July: Last date for income tax filing. As per a recent update, the last date to file ITR for FY 2018–2019 has been extended 31 August 2019
• From October to November: Verifying your income tax return as per slab
  

How to File your ITR Online

Now that you are aware of the latest income tax slab rates and know about the deadlines, take a look at steps income tax filing online.

• Register yourself on the Income Tax Department website to receive your login ID and password
• Log in to your e-filing account by entering your user ID, password, date of birth and the CAPTCHA code. In this case your PAN number is your user ID
• After you have logged in, click on ‘e-filing’ and select the ITR form that applies to you. Thereafter, select the relevant assessment year
• Now, choose the ‘Prepare And Submit Online’ option. Once you do this, some of your details will get auto-populated. Fill in the other details and verify your entries to ensure accuracy of information
• After checking the data, click on ‘Preview and Submit’ to proceed
• At this point, your return will be uploaded. Next, you are required to verify the income tax return via EVC or Aadhaar

Paying income tax as per your slab, consistently, contributes to the development of the country and helps you avoid any penalties. So, keep the aforementioned deadlines, income tax slabs and tax rates in mind to be a law-abiding citizen.