For the Financial Year (FY) 2024-25, which corresponds to the Assessment Year (AY) 2025-26, the income tax slabs for individuals are as follows. Note that the rates apply to both the old tax regime and the new tax regime, but the old regime allows for deductions and exemptions, whereas the new regime does not.
Old Tax Regime (FY 2024-25)
The old tax regime continues to have progressive tax slabs with higher rates for higher income levels:
For Individuals below 60 years of age:
- Income up to ₹2.5 lakh: Nil
- ₹2.5 lakh to ₹5 lakh: 5%
- ₹5 lakh to ₹10 lakh: 10%
- ₹10 lakh to ₹12.5 lakh: 15%
- ₹12.5 lakh to ₹15 lakh: 20%
- Above ₹15 lakh: 30%
For Senior Citizens (60 years and above but below 80 years):
- Income up to ₹3 lakh: Nil
- ₹3 lakh to ₹5 lakh: 5%
- ₹5 lakh to ₹10 lakh: 10%
- ₹10 lakh to ₹12.5 lakh: 15%
- ₹12.5 lakh to ₹15 lakh: 20%
- Above ₹15 lakh: 30%
For Very Senior Citizens (80 years and above):
- Income up to ₹5 lakh: Nil
- ₹5 lakh to ₹10 lakh: 20%
- Above ₹10 lakh: 30%
New Tax Regime (FY 2024-25)
The new tax regime offers lower tax rates but does not permit most deductions and exemptions:
- For All Individuals:
- Income up to ₹2.5 lakh: Nil
- ₹2.5 lakh to ₹5 lakh: 5%
- ₹5 lakh to ₹7.5 lakh: 10%
- ₹7.5 lakh to ₹10 lakh: 15%
- ₹10 lakh to ₹12.5 lakh: 20%
- ₹12.5 lakh to ₹15 lakh: 25%
- Above ₹15 lakh: 30%
Key Points:
- Surcharge and Cess: In both regimes, a surcharge is applicable for high-income individuals, and a cess of 4% on income tax (Health and Education Cess) is also levied.
- Choice of Regime: Taxpayers can choose between the old and new tax regimes based on which is more beneficial for their specific financial situation.
It’s important to review both regimes and calculate the tax liability under each to make an informed choice, considering your eligibility for deductions and exemptions under the old regime.
