Income Tax Slabs for FY 2025-26 and FY 2024-25

New Income Tax Slabs Announced in Union Budget 2025

In the Union Budget presented on 1st February 2025, Finance Minister Nirmala Sitharaman introduced revised income tax slabs under the new tax regime, offering substantial relief for taxpayers. The tax-free income limit has been raised from Rs. 7 lakh to Rs. 12 lakh, and for salaried individuals, this extends to Rs. 12.75 lakh per annum, considering the standard deduction of Rs. 75,000. These changes are expected to benefit a majority of middle-class taxpayers and encourage more people to opt for the simplified tax structure.

Here’s a detailed look at the revised income tax slabs under the new regime:

Annual Income Range (₹)	Tax Rate
Up to ₹4 lakh	Nil (0%)
₹4 lakh – ₹8 lakh	5%
₹8 lakh – ₹12 lakh	10%
₹12 lakh – ₹16 lakh	15%
₹16 lakh – ₹20 lakh	20%
₹20 lakh – ₹24 lakh	25%
Above ₹24 lakh	30%

 

The revised structure simplifies the filing process while offering potential tax savings of up to Rs. 1.14 lakh per annum. A significant update is the enhanced rebate under Section 87A, which has increased from Rs. 25,000 to Rs. 60,000. This means individuals with a net taxable income of up to Rs. 12 lakh will not pay any income tax.

In addition to the basic exemption being raised to Rs. 4 lakh, salaried individuals benefit from the standard deduction of Rs. 75,000 and continue to receive tax-free employer contributions to NPS under the new regime. While the new regime is now the default option, taxpayers still retain the flexibility to switch to the old tax regime if they wish to claim deductions under various sections like 80C, 80D, and HRA.

This taxpayer-friendly move is designed to promote transparency and ease while widening the tax net and boosting compliance.

New income tax slab and rates for FY 2025-26 (AY 2026-27) After Budget 2025

The Union Budget 2025-26 introduces significant reforms and allocations across various sectors, aiming to drive economic growth, support rural and urban development, and enhance financial inclusivity. Key changes include tax relief for individuals, increased allocations for infrastructure and healthcare, and new initiatives for agriculture, education, and technology. Below is a summary of the major announcements:

Sector	Announcement	Details/ Comments
Income tax	New income tax regime	-        Income up to Rs 12 lakh: No tax; -        Rs 8-12 lakh: 10%; -        Rs 12-16 lakh: 15%; -        Rs 16-20 lakh: 20%; -        Rs 20-25 lakh: 25%; -        Above Rs 25 lakh: 30%
	TDS on rent	Annual limit raised from Rs 2.4 lakh to Rs 6 lakh
	Tax deduction for senior citizens	Limit doubled to Rs 1 lakh
	Tax for salaried taxpayers	No income tax payable for income up to Rs 12.75 lakh
	Tax on income up to Rs 4 lakh	Set at 0% under the new regime
Start-ups	Benefits continuation	Benefits for start-ups will continue for five years from inception
Banking/Insurance	Grameen credit score framework	To be established for rural India
	FDI in insurance sector	Limit raised to 100%
Housing	Housing fund	Allocation of Rs 15,000 crore for completion of one lakh housing units
Agriculture	Atmanirbharta in oil seeds	Six-year mission launched
	Cotton yield improvement	Five-year mission initiated
	Kisan Credit Card	Loan limit increased from Rs 3 lakh to Rs 5 lakh
Education	Atal Tinkering Labs	To be established in schools
	Broadband internet	Provision for government secondary schools
	IIT infrastructure	Additional infrastructure to increase student capacity; IIT Patna to be expanded
Healthcare	Daycare cancer centres	To be set up in all district hospitals; 200 centres planned by fiscal 2026
	Duty on life-saving drugs	Six life-saving drugs to have a 5% duty; 36 drugs exempted from basic customs duty
Growth	MSME credit guarantees	Coverage raised from Rs 5 crore to Rs 10 crore
Infrastructure	PPP mode projects	Three-year projects can be implemented in PPP mode
	Interest-free loans	Rs 1.5 lakh crore allocated for states to implement infrastructure reforms
	Regional airports	Over 100 new regional airports planned over the next decade
	UDAN 2.0	To connect 120 new airports, with a focus on Northeast and Bihar
Excise/Customs duty	Export promotion mission	Set up for easier access to export credit
	Tariff rates	Proposal to remove seven tariff rates, leaving eight remaining
Economy	Investment-friendly index	To promote competition among states
	Fiscal deficit	Revised fiscal deficit target set at 4.8% for fiscal year 2025
	Capital expenditure	Set at Rs 10.18 lakh crore
Women's development	Term loan for women entrepreneurs	Up to Rs 2 crore available for first-time entrepreneurs from SC/ST and backward classes
Rural India	Nutritional support	For over eight crore children and one crore lactating mothers
Make in India	National Manufacturing Mission	Provides policy support and monitoring framework
	Clean technology manufacturing mission	New initiative launched
	Nuclear Energy Mission	Focused on research and development
Water management	Jal Jeevan Mission	Extended until 2028
Technology	Centre of Excellence in AI	To be established with an allocation of Rs 500 crore
	EV battery manufacturing	Additional capital goods for production
Tourism	Visa fee waivers	For certain tourist groups

These reforms aim to drive inclusive growth, enhance technological advancements, and support financial well-being across diverse sectors. The budget reflects the government's commitment to strengthening the economy while ensuring welfare and development.

Below is a detailed comparison of tax slab rate changes as per the Budget 2025.

New income tax slab for FY 2025-26

Tax slab for FY 2025	Tax rate
Up to Rs. 4 lakh	Nil
Rs. 4 lakh – Rs. 8 lakh	5%
Rs. 8 lakh – Rs. 12 lakh	10%
Rs. 12 lakh – Rs. 16 lakh	15%
Rs. 16 lakh - Rs. 20 lakh	20%
Rs. 20 lakh - Rs. 24 lakh	25%
More than Rs. 24 lakh	30%

Income tax scenarios under new regime (FY 2025-26 / AY 2026-27)

Scenario details and tax calculations

Scenario	Income range	Tax calculation details
1	Rs. 11.5 lakh	-        Income below Rs.12 lakh threshold -        Qualifies for full Section 87A rebate
2	Rs. 12.75 lakh	-        Standard deduction of Rs.75,000 applies -        Taxable income reduces to Rs.12 lakh -        Still qualifies for 100% rebate
3	Rs. 13 lakh	-        Exceeds rebate eligibility -        Taxable income after deduction: Rs.12.25 lakh -        Detailed tax calculation: o   Rs.0-4 lakh: No tax o   Rs.4-8 lakh: Rs.20,000 (5%) o   Rs.8-12 lakh: Rs.40,000 (10%) o   Rs.12-12.25 lakh: Rs.3,750 (15%) -        Total before marginal relief: Rs.63,750

Key points to remember

1. Zero tax threshold: Income up to Rs.12.75 lakh effectively qualifies for zero tax liability due to the rebate structure.
2. Basic exemption: The basic exemption limit remains at Rs.4 lakh, not Rs.12 lakh. The higher threshold is due to rebate benefits.
3. Regime specificity: These calculations apply exclusively to the new tax regime.
4. Capital gains: STCG and LTCG are subject to separate taxation rules and aren't covered under these scenarios.
5. Eligibility: These provisions are applicable only to resident individuals.
6. Standard deduction: A flat Rs.75,000 standard deduction is available to all taxpayers under the new regime.

Important Notes

• All calculations assume no additional income sources
• Health and Education Cess to be added where applicable
• Marginal relief provisions apply for incomes slightly above Rs.12.75 lakh

Understanding the new tax slabs (FY 2025-26 and AY 2026-27)

The Indian government has introduced sweeping changes to the tax regime for FY 2025-26, significantly raising the tax-free income threshold to Rs. 12 lakh. For salaried individuals, this limit extends to Rs. 12.75 lakh when accounting for the standard deduction of Rs. 75,000. This reform aims to increase disposable income and simplify tax compliance for a broader range of taxpayers.

Tax slab rates

Income range (Rs.)	Tax rate
0 - 12,00,000	Nil
12,00,001 - 16,00,000	15%
16,00,001 - 20,00,000	20%
20,00,001 - 24,00,000	25%
Above 24,00,000	30%

This new structure represents a significant departure from the previous regime, where incomes above Rs. 15 lakh were subject to a flat 30% tax rate. The graduated increase in tax rates between Rs. 12 lakh and Rs. 24 lakh provides substantial tax savings for middle- and high-income earners, making the new tax regime more attractive to a wider range of taxpayers.

Key highlights:

• Complete tax exemption up to Rs. 12 lakh (Rs. 12.75 lakh for salaried individuals)
• Progressive tax rates from 15% to 30%
• Simplified tax brackets for easier compliance
• Greater tax savings for incomes between Rs. 12 lakh and Rs. 24 lakh

Upcoming changes and policy announcements in tax bill

The government is set to introduce a comprehensive Income Tax Bill that aligns with the principles of Nyay (justice) as outlined in the Bharatiya Nyay Sanhita. The proposed changes focus on simplifying the tax structure and providing relief to taxpayers, particularly the middle class. Key modifications include rationalisation of the TDS regime and significant adjustments to tax slabs.

Key changes	Details
Basic exemption limit	Zero Income Tax up to Rs. 12 lakh under New Tax Regime
Extended benefits	Nil tax slab up to Rs. 12.75 lakh for salaried taxpayers (includes Rs. 75,000 standard deduction)
Scope of reform	Tax slab revisions across all brackets to benefit taxpayers universally
Expected outcomes	-        Reduced tax burden on middle class -        Increased disposable income -        Boost to consumption, savings, and investments
Compliance	Rationalisation of TDS regime for simplified taxpayer compliance

The Finance Ministry emphasises that these reforms are part of a broader vision for enhancing governance and fostering economic growth, rather than being standalone policy changes.

Features of latest tax regime: FY 2025-26 (AY 2026-27)

The new tax regime introduces significant changes for taxpayers, offering revised exemption limits and rebates while simplifying the tax structure. These updates aim to make the tax system more attractive, particularly for middle-income earners, by increasing exemptions and reducing overall tax liability.

Feature	Details
Default tax regime	The new tax regime remains the default option. Individuals without business income can opt for the old tax regime in any financial year.
Basic exemption limit	Increased from Rs. 3 lakh to Rs. 4 lakh effective April 1, 2025 (FY 2025-26), providing additional tax relief to all individual taxpayers.
Tax rebate (Section 87A)	Enhanced to cover taxable incomes up to Rs. 12 lakh (previously Rs. 7 lakh), ensuring zero tax liability up to this amount.
Surcharge rate	Highest surcharge rate of 25% on incomes exceeding Rs. 2 crore remains unchanged under Budget 2025.

Income tax slab and rates for FY 2024-25 (AY 2025-26) after Budget 2024

The new tax regime has been designated as the default option for individual taxpayers in FY 2024-25. While this regime offers simplified tax calculations with fewer deductions, taxpayers still retain the option to choose the old tax regime if it proves more advantageous for their specific financial situation.

The new tax regime slab rates in FY 2024-25 (AY 2025-26) have been revised, offering taxpayers additional tax relief compared to the rates applicable in FY 2023-24 (AY 2024-25).

Key changes and important notes

• These revised rates apply uniformly to all taxpayers, regardless of age
• The same tax slabs are applicable for:
  • Individuals below 60 years
  • Senior citizens (aged 60 to 80 years)
  • Super senior citizens (aged 80 years and above)
• The old tax regime continues to offer certain advantages for senior citizens, such as higher exemption limits

Comparative tax slab rates

Annual income slab	New tax regime FY (24-25 (AY 25-26)	New tax regime FY 23-24 (AY 24-25)
Up to Rs. 3,00,000	Nil	Nil
Rs. 3,00,001 to Rs. 6,00,000	5% on income exceeding Rs. 3,00,000	5% on income exceeding Rs. 3,00,000
Rs. 6,00,001 to Rs. 7,00,000	5% on income exceeding Rs. 3,00,000	15,000 + 10% on income exceeding Rs. 6,00,000
Rs. 7,00,001 to Rs. 9,00,000	20,000 + 10% on income exceeding Rs. 7,00,000	25,000 + 10% on income exceeding Rs. 7,00,000
Rs. 9,00,001 to Rs. 10,00,000	20,000 + 10% on income exceeding Rs. 7,00,000	45,000 + 10% on income exceeding Rs. 9,00,000
Rs. 10,00,001 to Rs. 12,00,000	50,000 + 15% on income exceeding Rs. 10,00,000	55,000 + 15% on income exceeding Rs. 10,00,000
Rs. 12,00,001 to Rs. 15,00,000	80,000 + 20% on income exceeding Rs. 12,00,000	90,000 + 20% on income exceeding Rs. 12,00,000
Above Rs. 15,00,000	1,40,000 + 30% on income exceeding Rs. 15,00,000	1,50,000 + 30% on income exceeding Rs. 15,00,000

New income tax slabs under the old tax regime for individual, HUF, AOP, and BOI

Under the old tax regime for FY 2024-25, different tax slabs apply based on the age of individual taxpayers, while Hindu Undivided Families (HUFs), Associations of Persons (AOPs), and Bodies of Individuals (BOIs) follow the same structure as individuals below 60 years. The tax rates remain unchanged, with benefits such as deductions and exemptions available under this regime.

Income tax slab rates for FY 2024-25 under the old regime

Annual taxable income	Individuals below 60 years, HUF, AOP, BOI	Senior citizens (60-80 years)	Super senior citizens (Above 80 years)
Up to Rs. 2,50,000	Nil	-	-
Up to Rs. 3,00,000	-	Nil	-
Up to Rs. 5,00,000	-	-	Nil
Rs. 2,50,001 - Rs. 5,00,000	5% on income exceeding Rs. 2,50,000	5% on income exceeding Rs. 3,00,000	-
Rs. 5,00,001 - Rs. 10,00,000	Rs. 12,500 + 20% on income exceeding Rs. 5,00,000	Rs. 10,000 + 20% on income exceeding Rs. 5,00,000	20% on income exceeding Rs. 5,00,000
Above Rs. 10,00,000	Rs. 1,12,500 + 30% on income exceeding Rs. 10,00,000	Rs. 1,10,000 + 30% on income exceeding Rs. 10,00,000	Rs. 1,00,000 + 30% on income exceeding Rs. 10,00,000

These tax slabs ensure progressive taxation, allowing deductions and exemptions under the old tax regime, making it a viable option for taxpayers looking to optimise their tax liability.

Old tax regime vs new tax regime: FY 2024-25 (AY 2025-26) vs. FY 2023-24 (AY 2024-25)

Starting FY 2024-25, the new tax regime is the default option for individual taxpayers. Unlike the old regime, it provides lower tax rates but limits deductions and exemptions. However, eligible taxpayers can still choose the old tax regime if it aligns better with their financial planning.

A comparison of income tax slab rates for FY 2024-25 (AY 2025-26) and FY 2023-24 (AY 2024-25) highlights that the new tax regime offers enhanced tax relief, making it an attractive choice for many taxpayers. The table below provides a detailed comparison of tax slabs and rates under both regimes:

Comparison of income tax slabs – Old vs. New Tax Regime

Income slab	Old tax regime – Tax rate (FY 2024-25 & FY 2023-24)	New tax regime (u/s 115BAC) – Tax rate (FY 2024-25 & FY 2023-24)
Up to Rs. 2,50,000	Nil	-
Up to Rs. 3,00,000	-	Nil
Rs. 2,50,001 - Rs. 5,00,000	5% above Rs. 2,50,000	-
Rs. 3,00,001 - Rs. 7,00,000	-	5% above Rs. 3,00,000
Rs. 5,00,001 - Rs. 10,00,000	Rs. 12,500 + 20% above Rs. 5,00,000	-
Rs. 7,00,001 - Rs. 10,00,000	-	Rs. 20,000 + 10% above Rs. 7,00,000
Rs. 10,00,001 - Rs. 50,00,000	Rs. 1,12,500 + 30% above Rs. 10,00,000	-
Rs. 10,00,001 - Rs. 12,00,000	-	Rs. 50,000 + 15% above Rs. 10,00,000
Rs. 50,00,001 - Rs. 100,00,000	Rs. 1,12,500 + 30% above Rs. 10,00,000 + 10% surcharge	-
Rs. 12,00,001 - Rs. 15,00,000	-	Rs. 80,000 + 20% above Rs. 12,00,000
Rs. 100,00,001 - Rs. 200,00,000	Rs. 1,12,500 + 30% above Rs. 10,00,000 + 15% surcharge	-
Rs. 15,00,001 - Rs. 50,00,000	-	Rs. 1,40,000 + 30% above Rs. 15,00,000
Rs. 200,00,001 - Rs. 500,00,000	Rs. 1,12,500 + 30% above Rs. 10,00,000 + 25% surcharge	-
Rs. 50,00,001 - Rs. 100,00,000	-	Rs. 1,40,000 + 30% above Rs. 15,00,000 + 10% surcharge
Above Rs. 500,00,000	Rs. 1,12,500 + 30% above Rs. 10,00,000 + 37% surcharge	-
Rs. 100,00,001 - Rs. 200,00,000	-	Rs. 1,40,000 + 30% above Rs. 15,00,000 + 15% surcharge
Above Rs. 200,00,001	-	Rs. 1,40,000 + 30% above Rs. 15,00,000 + 25% surcharge

The Interim Budget 2024-25 initially retained the same tax slabs and rates for the Assessment Year 2025-26 as the previous year. However, the full Budget 2024 reinforced the new tax regime as the default option for individual taxpayers, Hindu Undivided Families (HUFs), and certain entities.

While taxpayers can still opt for the old tax regime to claim deductions and exemptions, the new tax regime has simplified tax calculations with revised slab rates. Taxpayers with business or professional income must carefully consider their choice, as they can only switch regimes once.

Old tax regime slabs and rates for individual taxpayers under 60 years (AY 2025-26, FY 2024-25)

The old tax regime follows a progressive taxation structure, allowing individual taxpayers below 60 years to benefit from a tax-free slab up to Rs. 2,50,000. Higher income brackets are taxed at increasing rates, starting from 5% for earnings between Rs. 2,50,001 and Rs. 5,00,000 and reaching 30% for income exceeding Rs. 10,00,000. Additionally, a surcharge applies to higher-income groups, starting at 10% for income above Rs. 50,00,000 and increasing to 37% for income exceeding Rs. 5,00,00,000. The table below outlines the applicable tax rates and surcharges under the old tax regime.

Income tax slabs and rates under the old tax regime (for individuals below 60 years)

Income slab (Rs.)	Income tax rate	Surcharge
Up to 2,50,000	Nil	Nil
2,50,001 - 5,00,000	5% above Rs. 2,50,000	Nil
5,00,001 - 10,00,000	Rs. 12,500 + 20% above Rs. 5,00,000	Nil
10,00,001 - 50,00,000	Rs. 1,12,500 + 30% above Rs. 10,00,000	Nil
50,00,001 - 1,00,00,000	Rs. 1,12,500 + 30% above Rs. 10,00,000	10%
1,00,00,001 - 2,00,00,000	Rs. 1,12,500 + 30% above Rs. 10,00,000	15%
2,00,00,001 - 5,00,00,000	Rs. 1,12,500 + 30% above Rs. 10,00,000	25%
Above 5,00,00,000	Rs. 1,12,500 + 30% above Rs. 10,00,000	37%

Old tax regime slabs and rates for super senior citizens aged above 80 years (AY 2025-26, FY 2024-25)

For super senior citizens (aged 80 years and above), the old tax regime provides a higher tax exemption limit of Rs. 5,00,000. Income exceeding Rs. 5,00,000 is taxed at 20% up to Rs. 10,00,000 and 30% thereafter. A surcharge ranging from 10% to 37% is levied on incomes exceeding Rs. 50,00,000, with the highest rate applicable for incomes exceeding Rs. 5 crores.

Income tax slab	Income tax rate	Surcharge
Up to Rs. 5,00,000	Nil	Nil
Rs. 5,00,001 - Rs. 10,00,000	20% above Rs. 5,00,000	Nil
Rs. 10,00,001- Rs. 50,00,000	Rs. 1,12,500 + 30% above Rs. 10,00,000	Nil
Rs. 50,00,001- Rs. 100,00,000	Rs. 1,12,500 + 30% above Rs. 10,00,000	10%
Rs. 100,00,001- Rs. 200,00,000	Rs. 1,12,500 + 30% above Rs. 10,00,000	15%
Rs. 200,00,001- Rs. 500,00,000	Rs. 1,12,500 + 30% above Rs. 10,00,000	25%
Above Rs. 500,00,000	Rs. 1,12,500 + 30% above Rs. 10,00,000	37%

Individual taxpayers aged less than 60 years old: latest tax slabs for Annual Year 2025-26

The following table displays the latest tax slabs and rates for individuals below 60 years. Tax rates increase progressively based on income brackets, with a maximum rate of 30% applicable for income exceeding Rs. 15,00,000.

Income tax slab	Income tax rate	Surcharge
Up to Rs. 3,00,000	Nil	Nil
Rs. 3,00,001 - Rs. 7,00,000	5% above Rs. 3,00,000	Nil
Rs. 7,00,001 - Rs. 10,00,000	Rs. 20,000 + 10% above Rs. 7,00,000	Nil
Rs. 10,00,001 - Rs. 12,00,000	Rs. 50,000 + 15% above Rs. 10,00,000	Nil
Rs. 12,00,001 - Rs. 15,00,000	Rs. 80,000 + 20% above Rs. 12,00,000	Nil
Rs. 15,00,001- Rs. 50,00,000	Rs. 1,40,000 + 30% above Rs. 15,00,000	Nil
Rs. 50,00,001- Rs. 1,00,00,000	Rs. 1,40,000 + 30% above Rs. 15,00,000	10%
Rs. 1,00,00,001- Rs. 2,00,00,000	Rs. 1,40,000 + 30% above Rs. 15,00,000	15%
Above Rs. 2,00,00,001	Rs. 1,40,000 + 30% above Rs. 15,00,000	25%

Old vs new income tax slabs and tax rates for individual taxpayers aged less than 60 years old

The table below compares the old and new tax regimes for individual taxpayers aged below 60 years.

Old tax regime	New tax regime u/s 115BAC
Income tax slab	Income tax rate	Income tax slab	Income tax rate
Up to Rs. 2,50,000	Nil	Up to Rs. 3,00,000	Nil
Rs. 2,50,001 - Rs. 5,00,000	5% above Rs. 2,50,000	Rs. 3,00,001 - Rs. 7,00,000	5% above Rs. 3,00,000
Rs. 5,00,001 - Rs. 10,00,000	Rs. 12,500 + 20% above Rs. 5,00,000	Rs. 7,00,001 - Rs. 10,00,000	Rs. 20,000 + 10% above Rs. 7,00,000
Rs. 10,00,001- Rs. 50,00,000	Rs. 1,12,500 + 30% above Rs. 10,00,000	Rs. 10,00,001 - Rs. 12,00,000	Rs. 50,000 + 15% above Rs. 10,00,000
Rs. 50,00,001- Rs. 1,00,00,000	Rs. 1,12,500 + 30% above Rs. 10,00,000	Rs. 12,00,001 - Rs. 15,00,000	Rs. 80,000 + 20% above Rs. 12,00,000
Above Rs. 1,00,00,000	Rs. 1,12,500 + 30% above Rs. 10,00,000 + surcharge	Rs. 15,00,001- Rs. 50,00,000	Rs. 1,40,000 + 30% above Rs. 15,00,000

Senior citizen taxpayers aged between 60 to 80 years: New tax slabs for AY 2025-26

Senior citizens (aged 60-80 years) benefit from a higher exemption limit of Rs. 3,00,000. The tax rates progressively increase based on income brackets, reaching a maximum of 30%.

Income tax slab	Income tax rate	Surcharge
Up to Rs. 3,00,000	Nil	Nil
Rs. 3,00,001 - Rs. 7,00,000	5% above Rs. 3,00,000	Nil
Rs. 7,00,001 - Rs. 10,00,000	Rs. 20,000 + 10% above Rs. 7,00,000	Nil
Rs. 10,00,001 - Rs. 12,00,000	Rs. 50,000 + 15% above Rs. 10,00,000	Nil
Rs. 12,00,001 - Rs. 15,00,000	Rs. 80,000 + 20% above Rs. 12,00,000	Nil
Above Rs. 15,00,000	Rs. 1,40,000 + 30% above Rs. 15,00,000	Nil

Old vs new income tax slabs and tax rates for senior citizen taxpayers aged between 60 to 80 years

To make informed financial decisions, senior citizens (aged 60 to 80 years) must understand the differences between the old and new income tax slabs. The Indian government has introduced new tax regimes to simplify tax calculations, making it crucial to assess how these changes impact tax liability. The following table provides a comparative analysis of the old and new tax slabs and rates, helping taxpayers determine the most beneficial tax regime.

Old tax regime	Income tax rate	Surcharge	New tax regime u/s 115BAC	Income tax rate	Surcharge
Up to Rs. 3,00,000	Nil	Nil	Up to Rs. 3,00,000	Nil	Nil
Rs. 3,00,001 - Rs. 5,00,000**	5% above Rs. 3,00,000	Nil	Rs. 3,00,001 - Rs. 7,00,000**	5% above Rs. 3,00,000	Nil
Rs. 5,00,001 - Rs. 10,00,000	Rs. 10,000 + 20% above Rs. 5,00,000	Nil	Rs. 7,00,001 - Rs. 10,00,000	Rs. 20,000 + 10% above Rs. 7,00,000	Nil
Rs. 10,00,001 - Rs. 50,00,000	Rs. 1,12,500 + 30% above Rs. 10,00,000	Nil	Rs. 10,00,001 - Rs. 12,00,000	Rs. 50,000 + 15% above Rs. 10,00,000	Nil
Rs. 50,00,001 - Rs. 1,00,00,000	Rs. 1,12,500 + 30% above Rs. 10,00,000	10%	Rs. 12,00,001 - Rs. 15,00,000	Rs. 80,000 + 20% above Rs. 12,00,000	Nil
Rs. 1,00,00,001 - Rs. 2,00,00,000	Rs. 1,12,500 + 30% above Rs. 10,00,000	15%	Rs. 15,00,001 - Rs. 50,00,000	Rs. 1,40,000 + 30% above Rs. 15,00,000	Nil
Above Rs. 2,00,00,001	Rs. 1,12,500 + 30% above Rs. 10,00,000	25%	Above Rs. 50,00,000	Rs. 1,40,000 + 30% above Rs. 15,00,000	10-25%

Super senior citizen taxpayers aged over 80 years: New tax slabs for AY 2025-26

For individuals above 80 years of age, the income tax slabs and rates differ to provide additional financial relief. The table below presents the applicable tax rates under the new regime for AY 2025-26.

Income tax slab	Income tax rate	Surcharge
Up to Rs. 3,00,000	Nil	Nil
Rs. 3,00,001 - Rs. 7,00,000**	5% above Rs. 3,00,000	Nil
Rs. 7,00,001 - Rs. 10,00,000	Rs. 20,000 + 10% above Rs. 7,00,000	Nil
Rs. 10,00,001 - Rs. 12,00,000	Rs. 50,000 + 15% above Rs. 10,00,000	Nil
Rs. 12,00,001 - Rs. 15,00,000	Rs. 80,000 + 20% above Rs. 12,00,000	Nil
Above Rs. 15,00,000	Rs. 1,40,000 + 30% above Rs. 15,00,000	10-25%

Old vs new income tax slabs and tax rates for super senior citizen individual taxpayers aged over 80 years

Super senior citizens (aged 80+) benefit from preferential tax treatment. The following comparison of the old and new tax slabs will help determine the most advantageous regime.

Old tax regime	Income tax rate	Surcharge	New tax regime u/s 115BAC	Income tax rate	Surcharge
Up to Rs. 5,00,000	Nil	Nil	Up to Rs. 3,00,000	Nil	Nil
Rs. 5,00,001 - Rs. 10,00,000	20% above Rs. 5,00,000	Nil	Rs. 3,00,001 - Rs. 7,00,000**	5% above Rs. 3,00,000	Nil
Rs. 10,00,001 - Rs. 50,00,000	Rs. 1,12,500 + 30% above Rs. 10,00,000	Nil	Rs. 7,00,001 - Rs. 10,00,000	Rs. 20,000 + 10% above Rs. 7,00,000	Nil
Rs. 50,00,001 - Rs. 1,00,00,000	Rs. 1,12,500 + 30% above Rs. 10,00,000	10%	Rs. 10,00,001 - Rs. 12,00,000	Rs. 50,000 + 15% above Rs. 10,00,000	Nil
Rs. 1,00,00,001 - Rs. 2,00,00,000	Rs. 1,12,500 + 30% above Rs. 10,00,000	15%	Rs. 12,00,001 - Rs. 15,00,000	Rs. 80,000 + 20% above Rs. 12,00,000	Nil
Rs. 2,00,00,001 - Rs. 5,00,00,000	Rs. 1,12,500 + 30% above Rs. 10,00,000	25%	Rs. 15,00,001 - Rs. 50,00,000	Rs. 1,40,000 + 30% above Rs. 15,00,000	Nil
Above Rs. 5,00,00,000	Rs. 1,12,500 + 30% above Rs. 10,00,000	37%	Above Rs. 50,00,000	Rs. 1,40,000 + 30% above Rs. 15,00,000	10-25%

By comparing the old and new tax regimes, senior and super senior citizens can make informed decisions that optimise their tax savings. It is advisable to consult a tax professional before finalising tax declarations to ensure compliance with the latest regulations and maximise benefits.

Most important points for income tax slabs and rates for AY 2025-26 (FY 24-25)

The income tax slabs and rates for Assessment Year (AY) 2025-26 (Financial Year 2024-25) have undergone key modifications, impacting taxpayers across various categories. Below are the most significant points:

1. Surcharge and cess:
   • A 4% health and education cess is applicable on total tax payable.
   • Surcharge rates for income above Rs. 50 lakh:

Annual taxable income	Surcharge (old tax regime)	Surcharge (new tax regime)
Up to Rs. 50 Lakh	Nil	Nil
Rs. 50 Lakh - Rs. 1 Crore	10%	10%
Rs. 1 Crore - Rs. 2 Crore	15%	15%
Rs. 2 Crore - Rs. 5 Crore	25%	25%
Above Rs. 5 Crore	37%	25%

1. Gender neutrality: Income tax slabs and rates remain the same for male and female taxpayers.
2. Tax rebate:
   • Old Tax Regime: Income up to Rs. 5 lakh qualifies for a rebate of Rs. 12,500 under Section 87A.
   • New Tax Regime: Income up to Rs. 7 lakh qualifies for a full tax rebate under Section 87A.

15 Key income tax rule changes in 2024 that will influence ITR filing in 2025

The Union Budget 2024 introduced several significant income tax rule changes that will directly affect taxpayers filing their Income Tax Returns (ITR) in 2025. Here are the most important updates:

1. Revised income tax slabs: The new tax regime now allows taxpayers to save up to Rs. 17,500 annually.
2. Higher standard deduction: Standard deduction increased to Rs. 75,000 for salaried individuals and Rs. 25,000 for family pensioners.
3. Employer's NPS contribution: Deduction increased to 14% of the basic salary (previously 10%).
4. Revised LTCG and STCG tax rates: Short-term capital gains on equity increased to 20%, while LTCG exemption limit on equity-oriented mutual funds raised to Rs. 1.25 lakh.
5. New holding period rules: Listed securities categorized as long-term after 12 months; unlisted securities after 24 months.
6. TDS rate changes: New standardised TDS rates introduced for rent, insurance commission, and e-commerce transactions.
7. TDS/ TCS credits for salary income: Employees can offset TDS/TCS credits against salary income.
8. TCS credit transfer for parents/ guardians: Parents can claim TCS credits for tuition fee payments.
9. Taxation of share buybacks: Tax on buybacks shifted to individual shareholders instead of companies.
10. TCS on luxury goods: Purchases exceeding Rs. 10 lakh will attract TCS from January 2025.
11. Updated TDS rules for property sales: Buyers must deduct TDS even if a seller’s share is below Rs. 50 lakh.
12. TDS on RBI floating rate bonds: Interest above Rs. 10,000 per month now attracts TDS.
13. Vivad Se Vishwas Scheme 2.0: Tax dispute resolution scheme reintroduced.
14. Aadhaar enrolment number discontinued: Aadhaar enrolment numbers will no longer be accepted in ITR filings.
15. Reduced ITR reopening limit: Old ITRs can now be reopened only up to 5 years instead of 10 years.

Income tax slabs for Hindu Undivided Family (HUF) for AY 2025-2026

The income tax slabs for Hindu Undivided Families (HUFs) for the Assessment Year 2025-26 have been revised to provide better financial planning opportunities. The tax structure follows both the old tax regime and the new tax regime under section 115BAC, allowing taxpayers to choose their preferred structure.

Old tax regime			New tax regime u/s 115BAC
Income tax slab	Income tax rate	*Surcharge	Income tax slab	Income tax rate
Up to Rs. 2,50,000	Nil	Nil	Up to Rs. 3,00,000	Nil
Rs. 2,50,001 - Rs. 5,00,000**	5% above Rs. 2,50,000	Nil	Rs. 3,00,001 - Rs. 7,00,000**	5% above Rs. 3,00,000
Rs. 5,00,001 - Rs. 10,00,000	Rs. 12,500 + 20% above Rs. 5,00,000	Nil	Rs. 7,00,001 - Rs. 10,00,000	Rs. 20,000 + 10% above Rs. 7,00,000
Rs. 10,00,001- Rs. 50,00,000	Rs. 1,12,500 + 30% above Rs. 10,00,000	Nil	Rs. 10,00,001 - Rs. 12,00,000	Rs. 50,000 + 15% above Rs. 10,00,000
Rs. 50,00,001- Rs. 1,00,00,000	Rs. 1,12,500 + 30% above Rs. 10,00,000	10%	Rs. 12,00,001 - Rs. 15,00,000	Rs. 80,000 + 20% above Rs. 12,00,000
Rs. 1,00,00,001- Rs. 2,00,00,000	Rs. 1,12,500 + 30% above Rs. 10,00,000	15%	Rs. 15,00,001- Rs. 50,00,000	Rs. 1,40,000 + 30% above Rs. 15,00,000
Rs. 2,00,00,001- Rs. 5,00,00,000	Rs. 1,12,500 + 30% above Rs. 10,00,000	25%	Rs. 50,00,001- Rs. 1.00,00,000	Rs. 1,40,000 + 30% above Rs. 15,00,000
Above Rs. 5,00,00,000	Rs. 1,12,500 + 30% above Rs. 10,00,000	37%	Rs. 1,00,00,001- Rs. 2,00,00,000	Rs. 1,40,000 + 30% above Rs. 15,00,000
			Above Rs. 2,00,00,001	Rs. 1,40,000 + 30% above Rs. 15,00,000

New Income tax slabs for Non-Resident Individual (AY 2025-26)

Non-resident individuals are taxed differently based on their global income sources. The tax slabs remain aligned with resident individual tax slabs but with specific provisions for non-residents.

Old tax regime			New tax regime u/s 115BAC
Income tax slab	Income tax rate	*Surcharge	Income tax slab	Income tax rate	*Surcharge
Up to Rs. 2,50,000	Nil	Nil	Up to Rs. 3,00,000	Nil	Nil
Rs. 2,50,001 - Rs. 5,00,000	5% above Rs. 2,50,000	Nil	Rs. 3,00,001 - Rs. 7,00,000	5% above Rs. 3,00,000	Nil
Rs. 5,00,001 - Rs. 10,00,000	Rs. 12,500 + 20% above Rs. 5,00,000	Nil	Rs. 7,00,001 - Rs. 10,00,000	Rs. 20,000 + 10% above Rs. 7,00,000	Nil
Rs. 10,00,001- Rs. 50,00,000	Rs. 1,12,500 + 30% above Rs. 10,00,000	Nil	Rs. 10,00,001 - Rs. 12,00,000	Rs. 50,000 + 15% above Rs. 10,00,000	Nil
Rs. 50,00,001- Rs. 1,00,00,000	Rs. 1,12,500 + 30% above Rs. 10,00,000	10%	Rs. 12,00,001 - Rs. 15,00,000	Rs. 80,000 + 20% above Rs. 12,00,000	Nil
Rs. 1,00,00,001- Rs. 2,00,00,000	Rs. 1,12,500 + 30% above Rs. 10,00,000	15%	Rs. 15,00,001- Rs. 50,00,000	Rs. 1,40,000 + 30% above Rs. 15,00,000	Nil
Rs. 2,00,00,001- Rs. 5,00,00,000	Rs. 1,12,500 + 30% above Rs. 10,00,000	25%	Rs. 50,00,001- Rs. 1,00,00,000	Rs. 1,40,000 + 30% above Rs. 15,00,000	10%
Above Rs. 5,00,00,000	Rs. 1,12,500 + 30% above Rs. 10,00,000	37%	Rs. 1,00,00,001- Rs. 2,00,00,000	Rs. 1,40,000 + 30% above Rs. 15,00,000	15%
			Above Rs. 2,00,00,001	Rs. 1,40,000 + 30% above Rs. 15,00,000	25%

Association of Persons (AOP) / Body of Individuals (BOI) / Trust / Artificial Juridical Person (AJP) for AY 2025-26

Entities classified under Association of Persons (AOPs), Body of Individuals (BOIs), Trusts, and Artificial Juridical Persons (AJPs) are subject to specific tax regulations. The tax slabs are structured to align with the taxation framework applicable to individual taxpayers and business entities.

Old tax regime			New tax regime u/s 115BAC
Income tax slab	Income tax rate	*Surcharge	Income tax slab	Income tax rate	*Surcharge
Up to Rs.  2,50,000	Nil	Nil	Up to Rs.  3,00,000	Nil	Nil
Rs.  2,50,001 - Rs.  5,00,000**	5% above Rs.  2,50,000	Nil	Rs.  3,00,001 - Rs.  7,00,000**	5% above Rs.  3,00,000	Nil
Rs.  5,00,001 - Rs.  10,00,000	Rs.  12,500 + 20% above Rs.  5,00,000	Nil	Rs.  7,00,001 - Rs.  10,00,000	Rs.  20,000 + 10% above Rs.  7,00,000	Nil
Rs.  10,00,001- Rs.  50,00,000	Rs.  1,12,500 + 30% above Rs.  10,00,000	Nil	Rs.  10,00,001 - Rs.  12,00,000	Rs.  50,000 + 15% above Rs.  10,00,000	Nil
Rs.  50,00,001- Rs.  100,00,000	Rs.  1,12,500 + 30% above Rs.  10,00,000	10%	Rs.  12,00,001 - Rs.  15,00,000	Rs.  80,000 + 20% above Rs.  12,00,000	Nil
Rs.  100,00,001- Rs.  200,00,000	Rs.  1,12,500 + 30% above Rs.  10,00,000	15%	Rs.  15,00,001- Rs.  50,00,000	Rs.  1,40,000 + 30% above Rs.  15,00,000	Nil
Rs.  200,00,001- Rs.  500,00,000	Rs.  1,12,500 + 30% above Rs.  10,00,000	25%	Rs.  50,00,001- Rs.  100,00,000	Rs.  1,40,000 + 30% above Rs.  15,00,000	10%
Above Rs.  500,00,000	Rs.  1,12,500 + 30% above Rs.  10,00,000	37%	Rs.  100,00,001- Rs.  200,00,000	Rs.  1,40,000 + 30% above Rs.  15,00,000	15%
			Above Rs.  Rs.  200,00,001	Rs.  1,40,000 + 30% above Rs.  15,00,000	25%

These tax slabs ensure that various entities and individuals are taxed fairly while providing flexibility in choosing their preferred taxation model.

New tax slabs for domestic company for AY 2025-26

The updated income tax rates for domestic companies have been introduced to enhance business growth and economic stability in India. These rates are essential for companies to plan their financial strategies and meet tax obligations effectively.

Condition	Income tax rate (excluding surcharge and cess)
Total Turnover or Gross Receipts during the previous year 2020-21 does not exceed Rs. 400 crores	25%
If opted for Section 115BA	25%
If opted for Section 115BAA	22%
If opted for Section 115BAB	15%
Any other Domestic Company	30%

Income tax rate for foreign company under new income tax regime

Foreign companies operating in India are subject to specific income tax rates, designed to align with international tax standards and promote a favorable investment environment. These rates impact financial planning and compliance for multinational corporations operating in India.

Nature of income	Tax rate
Royalty received from the Government or an Indian concern according to an agreement post-March 31, 1961, but before April 1, 1976; or fees for technical services from an agreement post-February 29, 1964, but before April 1, 1976, approved by the Central Government	50%
Any other income	40%

What are the exemptions/ deductions unavailable under the new tax regime in FY 24-25?

The new tax regime significantly reduced the number of available exemptions and deductions. Nearly 70 out of 100 exemptions were removed, and opting for the new tax slabs means taxpayers must forgo several key deductions, including:

• House Rent Allowance (HRA): Previously deductible under Section 10(13A), no longer available.
• Leave Travel Allowance (LTA): Section 10(5) benefits for travel expenses during leave are no longer applicable.
• Specific allowances: Section 10(14) exemptions, including conveyance and children's education allowance, are discontinued.
• Tax-free perquisites: Food coupons and similar allowances are now taxable.
• Chapter VI A deductions: No deductions under Sections 80C (investments), 80D (medical insurance), 80TTA (savings interest), etc.
• Home loan interest deduction: Interest deductions for self-occupied property under Sections 24(b) and 80EEA are removed.

What exemptions/deductions come under the new tax regime in FY 24-25?

Despite the removal of many deductions, certain exemptions and benefits remain available under the new tax regime:

• NPS contributions by employer: Up to 10% of salary (14% for Central Government employees) is deductible under Section 80CCD(2).
• Standard deduction on rental income: A standard 30% deduction applies to net rental income.
• Home loan interest (Let-out property): Interest paid on loans for let-out properties remains deductible from rental income.
• Transport allowance for Divyang employees: Tax exemption for disabled employees covering daily travel expenses.
• Conveyance allowance: Permissible for official duties.
• Allowances for travel and transfer: Exemptions for expenses related to job-related travel or transfer.
• Daily allowance: Provided for day-to-day expenses when away from the usual place of duty.

These retained benefits provide some relief to taxpayers under the new regime while simplifying tax calculations and compliance.

Deductions: Old tax regime vs. new tax regime (Section 115BAC) for FY 2024-25

The table below outlines the key differences in available deductions between the Old Tax Regime and the New Tax Regime (Section 115BAC) for the financial year 2024-25.

Deduction/ Exemption	Old regime	New regime (Section 115BAC)
Section 80C (Investment in PPF, NSC, Life Insurance Premium, ELSS, etc.)	Available up to Rs. 1.5 lakh	Not available
Section 80D (Health insurance premium)	Available	Not available
Standard Deduction (for salaried individuals)	Rs. 50,000	Rs. 75,000 (FY 2024-25) and Rs. 50,000 (FY 2023-24)
House Rent Allowance (HRA)	Available (based on actuals)	Not available
Leave Travel Allowance (LTA)	Available	Not available
Interest on Housing Loan (Section 24) (for self-occupied property)	Deduction up to Rs. 2 lakh	Not available
Section 80E (Interest on education loan)	Available	Not available
Section 80G (Donations to charitable institutions)	Available	Not available

Benefits and disadvantages of new tax regime

Choosing between India's new and old tax regimes involves weighing their respective advantages and disadvantages against your financial habits, income level, and investment strategy. Here's a breakdown to help guide your decision:

Benefits of the new tax regime:

• Simplified tax process: With fewer deductions and exemptions, the new regime streamlines tax filing, benefiting those overwhelmed by the complexity of the old regime.
• Reduced tax rates: For individuals earning up to Rs. 7 lakhs, the new regime often provides lower tax rates, potentially increasing your net income.
• Tax rebate advantage: Earnings up to Rs. 7 lakhs qualify for a full tax rebate, resulting in zero tax liability under the new regime.
• Enhanced liquidity: The absence of compulsory tax-saving investments increases available cash for other financial purposes.

Drawbacks of the new tax regime:

• Loss of deductions and exemptions: Opting for the new regime means missing out on several key deductions and exemptions (e.g., HRA, LTA), which could raise your taxable income.
• Reduced financial planning flexibility: The elimination of deductions limits opportunities to strategically lower your tax obligations through targeted investments and expenditures.
• Potentially higher taxes for higher earners: Individuals with incomes over Rs. 10 lakhs might find themselves subject to higher taxes under the new regime, especially when including surcharges on incomes above Rs. 5 crores.
• Disadvantages for long-term savers: The new regime may not suit those who depend on tax-saving investments for wealth accumulation, as it excludes these benefits.

How to calculate income tax for income tax slabs for FY 24-25 (AY 2025-26)

To illustrate the process of income tax calculation, let's take the example of Sameera, a salaried individual with an annual income of Rs. 9,00,000. Sameera is eligible for deductions under Section 80C amounting to Rs. 2,00,000. The calculation of her income tax involves a few key steps:

1. Calculating gross taxable income
   • Total annual income: Rs. 9,00,000
   • Less deductions under Section 80C: Rs. 2,00,000
   • Gross taxable income: Rs. 9,00,000 - Rs. 2,00,000 = Rs. 7,00,000
2. Understanding the applicable tax slabs
   The income tax rates for FY 2024-25 are structured as follows:
   • Up to Rs. 2,50,000: 0% (no tax)
   • Rs. 2,50,001 to Rs. 5,00,000: 5%
   • Rs. 5,00,001 to Rs. 10,00,000: 20%
   • Above Rs. 10,00,000: 30%
3. Calculating the income tax
   • The first Rs. 2,50,000 of her income is tax-free.
   • The next Rs. 2,50,000 (from Rs. 2,50,001 to Rs. 5,00,000) is taxed at 5%, resulting in a tax of Rs. 12,500.
   • The remaining Rs. 2,00,000 (from Rs. 5,00,001 to Rs. 7,00,000) is taxed at 20%, amounting to Rs. 40,000.
   • Total tax liability: Rs. 12,500 + Rs. 40,000 = Rs. 52,500.
4. Consideration of surcharge and rebate
   • Since Sameera's income does not exceed Rs. 50 lakhs, no surcharge applies.
   • She is not eligible for the Section 87A rebate, as her taxable income is above Rs. 5,00,000.

Thus, Sameera’s total income tax liability amounts to Rs. 52,500.

How to calculate income tax liability under the old tax regime?

Calculating income tax liability under the old tax regime involves understanding the income tax slabs, deductions, and exemptions applicable for the financial year. The old tax regime allows taxpayers to claim various deductions, such as those under Section 80C, HRA, and standard deductions, which help reduce the taxable income. Here’s a step-by-step guide:

1. Determine gross total income
   • Sum all income sources, including salary, house property, capital gains, business or profession, and other sources like interest income.
2. Apply deductions and exemptions
   • Claim deductions under Section 80C (investments in ELSS, PPF, etc.), Section 80D (medical insurance), and others.
   • Common exemptions include House Rent Allowance (HRA), Leave Travel Allowance (LTA), and the standard deduction of Rs. 50,000.
   • Subtract these from the gross total income to calculate the net taxable income.
3. Identify the applicable tax slabs
   • The old tax regime has different slabs based on the taxpayer’s age group:
     • Individuals below 60 years
     • Senior citizens (60-79 years)
     • Super senior citizens (80 years and above)

By applying the appropriate tax rates and deductions, taxpayers can determine their tax liability under the old regime effectively.Tax slab 2025 vs 2024

Tax slab for FY 2024-25	Tax slab for FY 2025-26	Tax rate
Up to Rs. 3 lakh	Up to Rs. 4 lakh	Nil
Rs. 3 lakh - Rs. 7 lakh	Rs. 4 lakh - Rs. 8 lakh	5%
Rs. 7 lakh - Rs. 10 lakh	Rs. 8 lakh - Rs. 12 lakh	10%
Rs. 10 lakh - Rs. 12 lakh	Rs. 12 lakh - Rs. 16 lakh	15%
Rs. 12 lakh - Rs. 15 lakh	Rs. 16 lakh - Rs. 20 lakh	20%
-	Rs. 20 lakh - Rs. 24 lakh	25%
More than Rs. 15 lakh	More than Rs. 24 lakh	30%

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

Tax Slab for FY 2024	Tax Rate
Up to Rs. 3 lakh	Nil
Rs. 3 lakh - Rs. 7 lakh	5%
Rs. 7 lakh - Rs. 10 lakh	10%
Rs. 10 lakh - Rs. 12 lakh	15%
Rs. 12 lakh - Rs. 15 lakh	20%
More than Rs. 15 lakh	30%

Income Tax Slab for Old Tax Regime

Income Slab	Old Tax Regime
Rs. 0 - Rs. 2,50,000	-
Rs. 2,50,000 - Rs. 5,00,000	5%
Rs. 5,00,000 - Rs. 10,00,000	20%
>Rs. 10,00,000	30%

 

Old Tax vs New Tax Regime 2024

Tax Slab	Old Tax Regime	New Tax Regime FY 2023	New Tax Regime FY 2024
Under 250000	-	-	-
250000 - 300000	5%	-	-
300000 - 500000	5%	5%	5%
500000 - 600000	20%	5%	5%
600000 - 700000	20%	10%	5%
700000 - 900000	20%	10%	10%
900000 - 1000000	20%	15%	10%
1000000 - 1200000	30%	15%	15%
1200000 - 1500000	30%	20%	20%
More Than 1,500,000	30%	30%	30%

Tax Rates for HUFs (Resident or Non-Resident)

Old Tax Regime 2023		New Tax Regime 2024
Income Tax Slab	Income Tax Rate	Income Tax Slab	Income Tax Rate
Up to Rs.  2,50,000	Nil	Up to Rs.  3,00,000	Nil
Rs.  2,50,001 - Rs.  5,00,000	5% above Rs.  2,50,000	Rs.  3,00,001 - Rs.  6,00,000	5% above Rs.  3,00,000
Rs.  5,00,001 - Rs.  10,00,000	Rs.  12,500 + 20% above Rs.  5,00,000	Rs.  6,00,001 - Rs.  9,00,000	Rs.  15,000 + 10% above Rs.  6,00,000
Above Rs.  10,00,000	Rs.  1,12,500 + 30% above Rs.  10,00,000	Rs.  9,00,001 - Rs.  12,00,000	Rs.  45,000 + 15% above Rs.  9,00,000
		Rs.  12,00,001 - Rs.  15,00,000	Rs.  90,000 + 20% above Rs.  12,00,000
		Above Rs.  15,00,000	Rs.  1,50,000 + 30% above Rs.  15,00,000

Additionally, the budget of 2024 has raised the limit for standard deductions from Rs. 50,000 to Rs. 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

Old Tax Regime 2023		New Tax Regime 2024
Income Tax Slab	Income Tax Rate	Income Tax Slab	Income Tax Rate
Up to Rs.  3,00,000	Nil	Up to Rs.  3,00,000	Nil
Rs.  3,00,001 - Rs.  5,00,000	5% above Rs.  3,00,000	Rs.  3,00,001 - Rs.  6,00,000	5% above Rs.  3,00,000
Rs.  5,00,001 - Rs.  10,00,000	Rs.  10,000 + 20% above Rs.  5,00,000	Rs.  6,00,001 - Rs.  9,00,000	Rs.  15,000 + 10% above Rs.  6,00,000
Above Rs.  10,00,000	Rs.  1,10,000 + 30% above Rs.  10,00,000	Rs.  9,00,001 - Rs.  12,00,000	Rs.  45,000 + 15% above Rs.  9,00,000
		Rs.  12,00,001 - Rs.  15,00,000	Rs.  90,000 + 20% above Rs.  12,00,000
		Above Rs.  15,00,000	Rs.  1,50,000 + 30% above Rs.  15,00,000

Income Tax Rate for a Domestic Company

Condition	Income Tax Rate (excluding surcharge and cess)
Total Turnover or Gross Receipts during the previous year 2020-21 does not exceed Rs.  400 crores	25%
If opted for Section 115BA	25%
If opted for Section 115BAA	22%
If opted for Section 115BAB	15%
Any other Domestic Company	30%

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):

Income Tax Slab	Income Tax Rate
Up to Rs.  3,00,000	Nill
Rs.  3,00,001 - Rs.  6,00,000	5% above Rs.  3,00,000
Rs.  6,00,001 - Rs.  9,00,000	Rs.  15,000 + 10% above Rs.  6,00,000
Rs.  9,00,001 - Rs.  12,00,000	Rs.  45,000 + 15% above Rs.  9,00,000
Rs.  12,00,001 - Rs.  15,00,000	Rs.  90,000 + 20% above Rs.  12,00,000
Above Rs.  15,00,000	Rs.  1,50,000 + 30% above Rs.  15,00,000

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):

Income Tax Slab	Income Tax Rate
Up to Rs.  3,00,000	Nill
Rs.  3,00,001 - Rs.  6,00,000	5% above Rs.  3,00,000
Rs.  6,00,001 - Rs. 9,00,000Rs.	Rs.  15,000 + 10% above Rs. 6,00,000
Rs.  9,00,001 - Rs.  12,00,000	Rs.  45,000 + 15% above Rs. 9,00,000
Rs.  12,00,001 - Rs.  15,00,000	Rs.  90,000 + 20% above Rs.  12,00,000
Above Rs.  15,00,000	Rs.  1,50,000 + 30% above Rs.  15,00,000

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.