Income Tax Slab for FY 2024-2025

The interim FY 2024-25 budget did not bring any changes in the income tax slabs. That means the tax calculations for the coming year will be the same as 2023-24. However, choosing between the old and the new income tax slab significantly impacts your financial and tax planning.

The following sections explore the tax slabs of both regimes, helping you make better financial decisions.

Tax Slabs Under New Regime: Budget 2024-25 Updated

The income tax slab 2024-25 under the New Tax Regime is as follows:

What is an Income Tax Slab?

The Indian Tax Department uses the income tax slab system to levy income tax on individual taxpayers. The tax slab varies for people with different income ranges. As income increases, so does the applicable tax rate. The taxation system has a progressive approach that ensures a fair distribution of the tax burden across multiple income levels.

The slab rates are subject to revisions from time to time. The Finance Minister usually announces these revisions in the annual budget according to the prevailing economic conditions. The tax rates may vary for taxpayers in different categories. Taxpayers are categorised into three age-based groups:

1. Individuals below 60 years
2. Senior citizens between 60 and 80 years
3. Super-senior citizens above 80 years

Read Also: What is Income Tax Return (ITR)?

Comparison Between Tax Rates Under New Tax Regime & Old Tax Regime

Income Tax Slab Rates for FY 2024-25 (AY 2025-26)

Here is an overview of the income tax slab rates for FY 2024-25 (AY 2025-26):

New Tax Regime Until 31st March 2024:

The new tax regime offers lower tax rates but does not offer many deductions and exemptions available under the old regime. These are the tax slab rates under the new tax regime for FY 2024-25 (AY 2025-26):

Old Tax Regime

Let's explore the tax slab rates for various taxpayer categories under the old tax regime:

Income tax slabs for individuals aged below 60 years & HUFs

Income tax slab for individuals aged above 60 years to 80 years

Income tax slab for Individuals aged more than 80 years

How to Calculate Income Tax from Income Tax Slabs for FY 24-25?

Here is an example of how to calculate income tax from the income tax slab rates for FY 2024-25:

Read Also: How to File ITR for Salaried Employees?

Comparison of Income Tax Slabs under New Regime Before and After Budget

The Interim Budget 2024-25 did not make any changes in the income tax slab rates. The comparison will be as follows:

Old Tax Vs New Tax Regime: Which one is better?

When choosing between the old and the new tax slab, you must consider the tax deductions and exemptions available under them. Your net taxable income depends on the eligible exemptions. Calculate your tax liability to compare the savings under both regimes. Choosing a regime with a lower tax obligation makes sense. Once you finalise the tax regime to select, inform your employer so they can deduct the appropriate TDS from your salary.

Apart from the tax deductions, you must also consider any loss from capital gains, business, profession, or house property. Along with these losses, your previous year's losses will also lapse. Not being able to carry forward the losses might impact your future taxes and income calculations.

When Can I Opt for Old vs New Regime?

Read Also: Old Tax Regime Vs New Tax Regime: Which is Better?

Income Tax Slabs for Domestic Companies - FY 2024-25

Income Tax Rate for Partnership Firm or LLP as per Old/New Regime

Partnerships firms and LLPs are taxable at 30%. Here are some additional charges you must be aware of:

• 12% surcharge on income more than Rs 1 Crore
• 4% Health and Education Cess
• No concession for LLPs in the new tax regime

It's important to note that tax laws can change, so it's always advisable to consult with a tax professional for the most up-to-date information and guidance.

Read Also: Tax Saving Options for Salaried Employees

Income Tax Slab Rates for FY 2019-20, FY 2020-21, FY 2021-22 and FY 2022-23

Let’s look at the tax slab rates for different categories in the last few years:

Income Tax Slab for Individuals aged below 60 years & HUF

Income Tax Slab for Individuals aged above 60 years to 80 years

Income Tax Slab for Individuals aged more than 80 years

FY 2019-20

FY 2020-21

FY 2021-22

FY 2022-23

Read Also: How to get tax benefits on a personal loan?

Conclusion

Now that you know the income tax slab 2024 for various categories and its comparison with the last few years, you can choose between new and old tax regimes and reduce your taxable income. Always pay your taxes on time to enjoy the benefits and become a responsible citizen.

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Frequently Asked Questions

1. What is the new tax slab from 2024 to 2025?

   The new income tax slab for 2024-2025 is 0% for 0 to 3 Lakh, 5% for 3 to 6 Lakh, 10% for 6 to 9 Lakh, 15% for 9 to 12 Lakh, 20% for 12 to 15 Lakh, and 30% for above 15 lakh.

2. What is the 87A rebate for FY 2024-2025?

   Under Section 87A, a tax rebate of up to Rs 12,500 is available for taxpayers with a total taxable income up to Rs 5 lakh under the old tax regime. For the new tax regime, the rebate applies to taxable income up to Rs 7 lakh, allowing a maximum rebate of Rs 25,000.

3. What are the income tax changes for 2024?

   Budget 2024 did not change the income tax slabs, so the tax slab rates remained the same as the previous year.

4. Will the old tax regime be discontinued in 2025?

   In the recent budget, the Finance Minister announced that they are yet to decide whether to discontinue the old tax regime in 2025. If it offers more benefits, taxpayers can opt for the old tax regime for FY 2024-25.

5. Can we use the old tax regime for 2024-25?

   If you see more benefits in the old tax regime, you can use it for 2024-25.

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