Income Tax Slabs 2024-25, New Tax Regime, Old Tax Regime
Income Tax Slabs 2024-25 is now updated with new rates and deductions. Check this article for the latest tax slabs for the new and old regimes, including expected changes in Budget 2024 and more details.
Abhishek Kumar24 Jul, 2024
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Income Tax Slabs 2024-25: The Union Budget 2024 is being presented by India's Finance Minister, Nirmala Sitharaman. The latest Income Tax Slabs 2024-25 have been announced. The new tax regime is now the default for tax calculations. The exemption limit stays the same at ₹3 lakh. However, the standard deduction limit has been increased to ₹75,000. According to Nirmala Sitharaman, this hike in the standard deduction and the new income tax slabs will save taxpayers earning over ₹10 lakh annually about ₹17,500.
What is an Income Tax Slab?
In India, Income Tax is calculated based on a slab system. This means different parts of your income are taxed at different rates. The more you earn, the higher the tax rate on the additional income. This system helps ensure that those with higher incomes pay a fair share of tax. Each year, the government updates these slabs during the budget announcement to reflect changes in the economy. The slabs vary for different groups, such as individuals, senior citizens, and super senior citizens, making the tax system fair and progressive.New Tax Regime Income Tax Slabs (FY 2024-25)
In the Budget 2024, the standard deduction limit has been increased to ₹75,000 for salaried employees and ₹25,000 for family pensioners. This move aims to bring tax relief to four crore salaried employees and pensioners. Below are the latest income tax slabs announced by Finance Minister Nirmala Sitharaman for the new tax regime:| New Tax Regime Income Tax Slabs (FY 2024-25) | |
| Income Range | Tax Rate |
| Up to ₹3,00,000 | NIL |
| ₹3,00,001 to ₹7,00,000 | 5% (Tax Rebate u/s 87A) |
| ₹7,00,001 to ₹10,00,000 | 10% (Tax Rebate u/s 87A up to ₹7 lakh) |
| ₹10,00,001 to ₹12,00,000 | 15% |
| ₹12,00,001 to ₹15,00,000 | 20% |
| Above ₹15,00,000 | 30% |
Income Tax Slabs 2024 India
The Budget 2024 made the new tax regime the default option for filing income tax returns, but people can still choose the old regime if they prefer. Here are the detailed tax slabs under the new tax regime:| Income Tax Slabs 2024 India | ||
| Income Range | Tax Rate | Tax Rebate |
| Up to ₹3,00,000 | NIL | - |
| ₹3,00,001 to ₹6,00,000 | 5% | Tax Rebate u/s 87A |
| ₹6,00,001 to ₹9,00,000 | 10% | Tax Rebate u/s 87A up to ₹7 lakh |
| ₹9,00,001 to ₹12,00,000 | 15% | - |
| ₹12,00,001 to ₹15,00,000 | 20% | - |
| Above ₹15,00,000 | 30% | - |
Old Tax Regime
The old tax regime offers different tax slabs based on the age of the taxpayer. Here’s a breakdown of the income tax slabs for individuals, senior citizens, and super senior citizens under the old tax regime:| Old Tax Regime | |||
| Income Range | Individuals (Below 60 Years) | Resident Senior Citizens (60 to 79 Years) | Resident Super Senior Citizens (80 Years and Above) |
| Up to ₹2,50,000 | NIL | NIL | NIL |
| ₹2,50,001 to ₹3,00,000 | 5% | NIL | NIL |
| ₹3,00,001 to ₹5,00,000 | 5% | 5% | NIL |
| ₹5,00,001 to ₹10,00,000 | 20% | 20% | 20% |
| Above ₹10,00,000 | 30% | 30% | 30% |
What to Expect from Budget 2024
As we look forward to Budget 2024, here are some anticipated changes that could impact taxpayers:- Increased Exemption Limit : The government may raise the exemption limit to ₹5 lakh. This means that taxpayers with an income up to ₹5 lakh might not have to pay any income tax.
- Higher Standard Deduction : The standard deduction limit could be increased to ₹75,000. This change would allow individuals to reduce their taxable income by up to ₹75,000, leading to potential tax savings.
- Revised Tax Slabs : There might be new tax slabs introduced or existing ones modified. Specifically, there could be adjustments for individuals earning between ₹15 lakh and ₹20 lakh annually.
Income Tax Slabs 2024-25 FAQs
What are the new tax slabs for FY 2024-25 under the new tax regime?
The new tax slabs for FY 2024-25 are as follows: Up to ₹3,00,000 is tax-free, ₹3,00,001 to ₹7,00,000 is taxed at 5%, ₹7,00,001 to ₹10,00,000 at 10%, ₹10,00,001 to ₹12,00,000 at 15%, ₹12,00,001 to ₹15,00,000 at 20%, and above ₹15,00,000 at 30%.
How has the standard deduction limit changed in Budget 2024?
In Budget 2024, the standard deduction limit has increased to ₹75,000 for salaried employees and ₹25,000 for family pensioners.
What tax savings can taxpayers expect with the new standard deduction limit?
Taxpayers earning over ₹10 lakh annually could save approximately ₹17,500 due to the increased standard deduction and new tax slabs.
Can taxpayers still choose the old tax regime for FY 2024-25?
Yes, taxpayers can still choose the old tax regime, even though the new tax regime is now the default option.
What changes are anticipated in Budget 2024?
Budget 2024 might increase the exemption limit to ₹5 lakh, raise the standard deduction limit, and possibly introduce or modify tax slabs, especially for incomes between ₹15 lakh and ₹20 lakh.
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