For the financial year 2024-25 (Assessment Year 2025-26), India continues to have two tax regimes: the Old Tax Regime and the New Tax Regime. Below are the income tax slab rates for individuals under both regimes:
1. Old Tax Regime (with deductions and exemptions)
This regime allows you to claim various exemptions and deductions, such as Section 80C, 80D, HRA, and more.
For Individuals below 60 years of age:
• Income up to ₹2.5 lakh: Nil
• Income from ₹2.5 lakh to ₹5 lakh: 5% of income exceeding ₹2.5 lakh
• Income from ₹5 lakh to ₹10 lakh: 20% of income exceeding ₹5 lakh
• Income above ₹10 lakh: 30% of income exceeding ₹10 lakh
For Senior Citizens (60 to 80 years):
• Income up to ₹3 lakh: Nil
• Income from ₹3 lakh to ₹5 lakh: 5% of income exceeding ₹3 lakh
• Income from ₹5 lakh to ₹10 lakh: 20% of income exceeding ₹5 lakh
• Income above ₹10 lakh: 30% of income exceeding ₹10 lakh
For Super Senior Citizens (above 80 years):
• Income up to ₹5 lakh: Nil
• Income from ₹5 lakh to ₹10 lakh: 20% of income exceeding ₹5 lakh
• Income above ₹10 lakh: 30% of income exceeding ₹10 lakh
2. New Tax Regime (without deductions and exemptions)
In the New Tax Regime, taxpayers do not get most deductions and exemptions but benefit from lower tax rates. The slabs for the new regime are as follows:
• Income up to ₹2.5 lakh: Nil
• Income from ₹2.5 lakh to ₹5 lakh: 5% of income exceeding ₹2.5 lakh
• Income from ₹5 lakh to ₹7.5 lakh: 10% of income exceeding ₹5 lakh
• Income from ₹7.5 lakh to ₹10 lakh: 15% of income exceeding ₹7.5 lakh
• Income from ₹10 lakh to ₹12.5 lakh: 20% of income exceeding ₹10 lakh
• Income from ₹12.5 lakh to ₹15 lakh: 25% of income exceeding ₹12.5 lakh
• Income above ₹15 lakh: 30% of income exceeding ₹15 lakh
Important Notes:
• Rebate under Section 87A: Both regimes allow a rebate under Section 87A. If your total income is up to ₹5 lakh, you are eligible for a tax rebate, which means no tax will be payable.
• Surcharge and Cess: Surcharge and Health and Education Cess are applicable as per the income level under both regimes.
• Surcharge applies on income above ₹50 lakh at varying rates (10% to 37%).
• A 4% Health and Education Cess is applied on the total tax amount.
You can choose between the Old and New Tax Regime when filing your returns, based on which regime benefits you more in terms of total tax liability.
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