What are the Income Tax Slabs for 2024-25? Know details for old and new tax regime

Feb29,2024



Income Tax Slabs 2024-25: There has been no change in the income tax slabs or rates in the interim Budget 2024 presented recently by Finance Minister Nirmala Sitharaman. If you are a common individual or a salaried taxpayer and are curious about the income tax structure for the financial year 2024-25 (Assessment Year 2025-26), we have you covered.
It is important to note that although no adjustments were made to the income tax slabs in both the old and new tax regimes, this may change when the new government presents the full year Budget 2024 after the Lok Sabha elections in 2024.

What are the income tax slabs for the year 2024-2025 after Interim Budget 2024?

As reported earlier, the Finance Minister proposed to maintain the existing tax rates in the interim budget for the financial year 2024-25. Therefore, unless any changes are made in the final budget after the general elections, the personal income tax rates for the financial year 2024-25 will remain unchanged as follows:
Income Tax Slabs for Old/Regular Tax Regime 2024-2025

Income Limit (in INR) Rates
Up to Rs 250,000* Zero
250,001 to 500,000 5%
500,001 to 1,000,000 20%
above 1,000,000 30%

These income tax slabs and rates are applicable to individuals (residents below 60 years of age, NRs and NORs) for the financial year 2024-25.
Resident individual taxpayers with total income above Rs 500,000 will be eligible for tax rebate of Rs 12,500 or actual tax payable, whichever is lower.
Additionally, it is important to note that for resident individuals who are senior citizens aged 60 years and above, the basic exemption limit is Rs 3 lakh, while for extremely senior citizens aged 80 years and above, the basic exemption limit is Rs. It is Rs 5 lakh.

Income tax slabs for the financial year 2024-2025 in the new income tax system

The income tax rates applicable under the new income tax regime, also known as the concessional tax regime, for the financial year 2024-25 are as follows:

Income Limit (in INR) Rates
up to 300,000 Zero
300,001 to 600,000 5%
600,001 to 900,000 10%
900,001 to 1200,000 15%
1,200,001 to 1,500,000 20%
above 1,500,000 30%

In the new income tax regime, the eligibility limit for exemption is Rs 7,00,000, allowing taxpayers to claim exemption of up to Rs 25,000. Additionally, marginal relief will continue to be available to resident individuals with net taxable income exceeding Rs 7,00,000 where the incremental income tax liability exceeds the incremental income exceeding Rs 7,00,000.
In addition to the taxes calculated as per the above slabs, a surcharge will be levied on the income tax of individuals if their total income exceeds Rs 5,000,000. The surcharge rates are as follows:

Income (in INR) Surcharge rates under regular/old tax regime Surcharge rates under the new tax regime
Above Rs 5,000,000 but less than Rs 10,000,000 10% 10%
Above Rs 10,000,000 but less than Rs 20,000,000 15% 15%
Above Rs 20,000,000 but less than Rs 50,000,000 25% 25%
above 50,000,000 37% 25%

In addition, a Health and Education Cess of 4% is levied on income tax and surcharge (if applicable) calculated on the basis of the above rates applicable to all individuals.



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