Income Tax Act 2024-25, New Tax Slabs
Income Tax Act 2024-25 updates are now out by Finance Minister Ms Nirmala Sitamramn. Check the new tax slab, increased deduction and key changes in income tax regime 2024-25
Shruti Dutta26 Jul, 2024
Share
In the Union Budget 2024, Finance Minister Ms Nirmala Sitharaman presented a series of significant Income Tax Act 2024-25 and reforms aimed at shaping the economic landscape for the upcoming fiscal year. The Income Tax Act 2024-25 focuses on promoting growth, enhancing tax efficiency, and providing relief to taxpayers through various measures.
The key highlights include a revised set of income New Tax Slabs 2024-25, an increased standard deduction, and important capital gains tax regime changes. These Latest Income Tax Updates 2024 and the adjustments reflect the government's commitment to fostering a more inclusive and progressive tax system while addressing the evolving needs of the economy. Check out the "IT Tax Act PDF to learn more about the income tax guide 2024-25.Income Tax Act 2024-25
The Income Tax Act is legislation enacted by the government to regulate the taxation system within a country. It outlines the laws and regulations regarding collecting, assessing, and administering income taxes. The Act contains detailed provisions on various aspects of taxation, such as tax rates, deductions, exemptions, and procedures for filing tax returns. Its primary objective is to ensure a systematic and fair process for collecting revenue from individuals and businesses, thereby contributing to the country's financial stability and development.Provisions of Income Tax Act 1961
The Income Tax Act of 1961 has several important provisions, including:- Taxability of Income
- Annual Information and Financial Transaction Statement
- Assessing Tax Authorities
- Mode of Undertaking Transactions
- Instructions to Subordinate Authorities
| Also Read | |
| Taxation | Cash Flow Statement |
| Activity and Profitability Ratio | Abnormal Loss And Abnormal Gains |
Latest Changes in Income Tax Act 2024-25
For the Income Tax Act 2024-25, Finance Minister Nirmala Sitharaman has introduced significant revisions to the tax structure. These changes are designed to streamline the taxation process, offer relief to various taxpayer segments, and adjust tax rates and exemptions in response to the new Economic landscape. The modifications have increased deductions, altered tax rates, and adjusted the TDS provisions. Here is the detailed tax slab| Latest Changes in Income Tax Act 2024-25 | ||
| Provision | Previous Limit/Rate | New Limit/Rate |
| Standard Deduction for Salaried Individuals | ₹50,000 | ₹75,000 |
| Family Pension Deduction Limit | ₹15,000 | ₹25,000 |
| Exemption Limit on Long-Term Capital Gains (LTCG) | ₹1 Lakh | ₹1.25 Lakh |
| Tax Rate on LTCG | 10% | 12.5% |
| Taxation of Short-Term Capital Gains (STCG) on Listed Equity Shares | 15% | 20% |
| TDS Rate on Specified Payments | 5% | 2% |
| TDS on Repurchase of Units by Mutual Funds/UTI (Section 194F) | 20% | Omitted |
| TDS on E-commerce | 1% | 0.1% |
| Angel Tax | Applicable | Abolished |
| Security Transaction Tax (STT) on Futures and Options | 0.02% | 0.1% |
Old Income Tax Regime
The old tax regime provided different tax slabs for individuals based on age. These slabs offer varying levels of tax relief for different age groups, from regular individuals to senior and super senior citizens. Below is a detailed breakdown of the income tax slabs and rates under the old regime:| Old Income Tax Regime | ||
| Category | Range of Income | Tax Rate |
| Individuals (Below 60 Years) | Up to Rs. 2,50,000 | Nil |
| Rs. 2,50,001 to Rs. 5,00,000 | 5% | |
| Rs. 5,00,001 to Rs. 10,00,000 | 20% | |
| Above Rs. 10,00,000 | 30% | |
| Senior Citizens (Age 60 to 80) | Up to Rs. 3,00,000 | Nil |
| Rs. 3,00,001 to Rs. 6,00,000 | 5% | |
| Rs. 6,00,001 to Rs. 9,00,000 | 10% | |
| Rs. 9,00,001 to Rs. 12,00,000 | 15% | |
| Rs. 12,00,001 to Rs. 15,00,000 | 20% | |
| Above Rs. 15,00,000 | 30% | |
| Super Senior Citizens (Above 80 Years) | Up to Rs. 5,00,000 | Nil |
| Rs. 5,00,001 to Rs. 10,00,000 | 20% | |
| Above Rs. 10,00,000 | 30% | |
Income Tax Slabs Under New Tax Regime
The new tax regime, introduced to streamline tax calculations and reduce rates, has undergone revisions to better address current economic conditions. The Income Tax Act 2024-25 slabs have been adjusted to reflect these changes. Below is the updated table showing the income New Tax Slabs 2024-25 and rates under the new tax regime:| Income Tax Slabs Under New Tax Regime | ||||
| Current Tax Slabs | Current Tax Rates | Proposed Tax Slabs | Proposed Tax Rates | Change |
| Up to Rs. 3,00,000 | 0 | Up to Rs. 3,00,000 | 0 | No Change |
| Rs. 3,00,000 - Rs. 6,00,000 | 5% | Rs. 3,00,000 - Rs. 7,00,000 | 5% | Slab expanded by Rs. 1,00,000 |
| Rs. 6,00,000 - Rs. 9,00,000 | 10% | Rs. 7,00,000 - Rs. 10,00,000 | 10% | Slab expanded by Rs. 1,00,000 |
| Rs. 9,00,000 - Rs. 12,00,000 | 15% | Rs. 10,00,000 - Rs. 12,00,000 | 15% | Continuity |
| Rs. 12,00,000 - Rs. 15,00,000 | 20% | Rs. 12,00,000 - Rs. 15,00,000 | 20% | No Change |
| Above Rs. 15,00,000 | 30% | Above Rs. 15,00,000 | 30% | No Change |
- Income Tax Slabs: The new regime has five tax slabs, with the highest rate of 30% applicable to income exceeding Rs. 15 lakh.
- Basic Exemption Limit: No tax is levied on income up to Rs. 3 lakh.
- Tax Rebate: Under Section 87A, individuals with incomes up to Rs. 7 lakh receive a rebate of up to Rs. 25,000, resulting in no tax payable.
- Surcharge on High Incomes: A 25% surcharge applies to income exceeding Rs. 5 crore.
- Marginal Tax Relief: Provides relief to taxpayers whose incomes slightly exceed Rs. 7 lakh to reduce their tax burden.
Deductions and Exemptions under New Tax Regime
Under the New Tax Slabs Explained 2024-25, many deductions and exemptions available in the old tax regime are no longer applicable. The new system will not have approximately 70 deductions and exemptions from the old regime. However, certain deductions remain permissible under the new tax regime. Below are some of the deductions announced in Income Tax Basics 2024 that are allowed:- Travel Allowance for Employment or Transfer : This includes allowances for travel related to employment or job transfers.
- Depreciation : While additional depreciation is not allowed, other deductions related to depreciation under Section 32 remain applicable.
- Deduction for New Employees : Under Section 80JJAA, deductions for employing new employees are allowed.
- Investments in Notified Pension Schemes : Contributions to Notified Pension Schemes under Section 80CCD(2) are deductible.
- Conveyance Allowance : Allowances received to cover work-related travel expenses are permitted.
- Transport Allowance for Specially Abled Individuals : Individuals can claim a transport allowance.
Comparison of New Tax Regime Slabs: FY 2023-24 vs. FY 2024-
The new tax regime has seen some revisions for the fiscal year 2024-25 compared to the previous year, 2023-24. These IT Tax Act Changes 2024-25 aim to adjust the tax slabs and rates to better align with current economic conditions and relieve taxpayers. Below is a detailed comparison of the income tax slabs under the new tax regime for FY 2023-24 and FY 2024-25:| Comparison of New Tax Regime Slabs: FY 2023-24 vs. FY 2024- | ||
| Income Range (FY 2023-24) | Income Range (FY 2024-25) | Tax Rate |
| Up to ₹3,00,000 | Up to ₹3,00,000 | NIL |
| ₹3,00,001 to ₹6,00,000 | ₹3,00,001 to ₹7,00,000 | 5% |
| ₹6,00,001 to ₹9,00,000 | ₹7,00,001 to ₹10,00,000 | 10% |
| ₹9,00,001 to ₹12,00,000 | ₹10,00,001 to ₹12,00,000 | 15% |
| ₹12,00,001 to ₹15,00,000 | ₹12,00,001 to ₹15,00,000 | 20% |
| Above ₹15,00,000 | Above ₹15,00,000 | 30% |
Begin your journey towards academic excellence in Commerce with our comprehensive Commerce courses . Master the CBSE syllabus with expert guidance and ace your exams. Enroll now!”
Income Tax Act 2024-25 FAQs
Will the Section 80C limit increase in 2024?
No, the deduction limit under Section 80C of the Income Tax Act remains unchanged in Budget 2024.
What are the exemptions in the new tax slab?
Under the new tax regime, individuals with earnings up to Rs 7.75 lakh will not be liable to pay income tax. This is due to the latest tax slab adjustments and the standard deduction increase from Rs 50,000 to Rs 75,000.
Talk to a counsellorHave doubts? Our support team will be happy to assist you!
Check out these Related Articles
Join 15 Million students on the app today!
Live & recorded classes available at easeDashboard for progress trackingMillions of practice questions at your fingertips
Free Learning Resources
PW Books
Notes (Class 10-12)
PW Study Materials
Notes (Class 6-9)
Ncert Solutions
Govt Exams
Class 6th to 12th Online Courses
Govt Job Exams Courses
UPSC Coaching
Defence Exam Coaching
Gate Exam Coaching
Other Exams
Know about Physics Wallah
Physics Wallah is an Indian edtech platform that provides accessible & comprehensive learning experiences to students from Class 6th to postgraduate level. We also provide extensive NCERT solutions, sample paper, NEET, JEE Mains, BITSAT previous year papers & more such resources to students. Physics Wallah also caters to over 3.5 million registered students and over 78 lakh+ Youtube subscribers with 4.8 rating on its app.
We Stand Out because
We provide students with intensive courses with India’s qualified & experienced faculties & mentors. PW strives to make the learning experience comprehensive and accessible for students of all sections of society. We believe in empowering every single student who couldn't dream of a good career in engineering and medical field earlier.
Our Key Focus Areas
Physics Wallah's main focus is to make the learning experience as economical as possible for all students. With our affordable courses like Lakshya, Udaan and Arjuna and many others, we have been able to provide a platform for lakhs of aspirants. From providing Chemistry, Maths, Physics formula to giving e-books of eminent authors like RD Sharma, RS Aggarwal and Lakhmir Singh, PW focuses on every single student's need for preparation.
What Makes Us Different
Physics Wallah strives to develop a comprehensive pedagogical structure for students, where they get a state-of-the-art learning experience with study material and resources. Apart from catering students preparing for JEE Mains and NEET, PW also provides study material for each state board like Uttar Pradesh, Bihar, and others
Copyright © 2025 Physicswallah Limited All rights reserved.