Income Tax Slab and Rates F.Y.2024-25 or income tax slab for ay 2025-26

Income Tax Slab and Rates F.Y.2024-25 or income tax slab for ay 2025-26

We are providing information about the Income Tax Slab Rates for F.Y. 2024-25 (or A.Y. 2025-26) and addressing related questions commonly searched by individuals for their needs

old income tax slab, income tax slab new regime, income tax slab for senior citizens, income tax slab for senior citizens above 60 years for fy 2024-25

Income tax is a direct tax paid by the individuals and entities on their earnings in India. Income tax collected as tax revenue facilitates the provision of government services and public infrastructure. Income tax in India is a progressive tax; as taxable income increases, so does the tax rate. The following article is a synopsis of the income tax slabs and rates for an individual taxpayer under both old and new tax regimes during the financial year 2023-24.

Slabs of Income Tax

Slabs of income tax refers to the thresholds and corresponding tax rates at which the income is taxed. Two tax regimes were introduced by the Indian government, namely, the old tax regime with deductions and exemptions and the new tax regime without exemptions but with simplified slabs. The taxpayer can choose between the two regimes based on which is more beneficial to them.

Old Tax Regime (With explain of Deductions and Exemptions)

Under the old taxation system, there are lots of deductions and exemptions to which a taxpayer can appeal. These include:

Section 80C: Deductions for investing up to ₹1,50,000 in schemes like PPF, ELSS, LIC premiums, etc.

Section 80D: Exemption on health insurance

HRA: Exemption for those in rented accommodations

Standard Deduction: ₹ 50,000 standard deduction for salaried taxpayers.

The income tax slabs for individuals who are less than 60 years of age under the old tax regime for the year F.Y. 2024-25 are as follows:

Income Range (Rs.)	Tax Rate (%tage)
Up to 3,00,000	Nill
3,00,001 - 6,00,000	5%
6,00,001 - 9,00,000	10%
9,00,001 - 12,00,000	15%
12,00,001 - 15,00,000	20%
Above 15,00,000	30%

The exemption limit of this regime is higher for senior citizens (age above 60 year but less then 80 year) and super senior citizens (above age 80 year), that is ₹3,00,000 and ₹5,00,000 respectively.

New Tax Regime explain (its Without Deductions and Exemptions)

The new tax regime that has come into effect from FY 2020-21 is the one that has made it easier for the tax structure, reducing the rates, increasing the income slabs, but scrapping off most of the deductions and exemptions. The income tax slabs for FY 2024-25 as revised by Budget 2024, for individuals less than 60 years under the new tax regime, are given below:

               

Income Range (Rs.)	Tax Rate (%tage)
Up to 3,00,000	Nill
3,00,000 - 7,00,000	5%
7,00,000 - 10,00,000	10%
10,00,001 - 12,00,000	15%
12,00,001 - 15,00,000	20%
Above 15,00,000	30%

In this category, the exemption under Section 80C and the standard deduction as well as HRA exemptions are not available. A rebate is available under Section 87A for ₹5,00,000 of income. So the person earning low will have no tax liability.

You can quickly review with help of following comparison table between income tax slab of FY 2023-25 and FY 2024-25 (Click on the image for Zoom)

Section 87A Rebate

Rebate for assessment year under Section 87A can be claimed, provided that total income of an individual resident in India does not exceed Rs.5,00,000. The maximum amount payable as rebate is Rs 12,500, therefore the tax liability would reduce to nil. This scheme is applicable to both regimes and therefore is a considerable relief to the low income.

Old vs New Regimes: Which is Better?

It depends on individual tastes. Here is a quick comparison:

Factors	Old Tax Regime	New Tax Regime
Deductions & Exemptions	Available	Not available
Simplicity or easiness	Comparatively complex	Simpler with more slabs
Suitable for assessee	Taxpayers with high deductions	Taxpayers with minimal deductions

To decide, one needs to work out the tax under two regimes. For such a taxpayer with significant investments covered under 80C or suffering from major medical expense, the old regime serves better. For other such taxpayers with minor deductions, the new regime may come in handy since the effective rates are lower.

Which Regime Should I Opt For?

However, salaried people are allowed to choose annually that would help them in flexible tax regimes. Businesses and self-employed taxpayers are not allowed to switch their regime if chosen once; however, the income Tax Act does provide for a one-time change.

Conclusion

As above discussion about under Income Tax Slab and Rates" is be execute planning to save money through income taxes usually heavily influences financial savings when taxpayers know and distinguish between different tax regimes in terms of slabs, rates, and related benefits. A tax adviser would further assist people in choosing strategies to save money more appropriate for their unique financial profiles.