Income Tax Slabs FY 2024-25 Explained: New Tax Regime Vs Old Tax Regime - What are the tax rates, slabs & surcharge rates? Find out

Income Tax Slabs FY 2024-25: At the start of the new financial year 2024-25 from April 1, it is important for income tax payers to be cognizant of the income tax rates and income tax slabs that are applicable to them - both under the new income tax regime and the old income tax regime. It is also important to remember that effective FY 2023-24, the new income tax regime has become the default income tax regime. Hence if you wish to opt for the old tax regime, you will have to tell your employer at the start of the financial year so that your income tax outgo is calculated accordingly. We take a look at the income tax slabs for FY 2024-25 (AY 2025-26):

Income Tax Slabs 2024-25 Old Tax regime: For the financial year 2024-25, the income tax slabs and rates in the table apply to individuals, including residents below 60 years of age, non-residents (NR), and non-ordinary residents (NOR).

Income Tax Slabs 2024-25 Old Tax regime: Resident individual taxpayers with a total income not exceeding Rs 500,000 will be eligible for a tax rebate of Rs 12,500 or the actual tax payable, whichever is lower.

Income Tax Slabs 2024-25 Old Tax regime: It's also important to note that for resident individuals who are senior citizens aged 60 and above, the basic exemption limit is Rs 3 lakh, while for super senior citizens aged 80 and above, the basic exemption limit is Rs 5 lakh.

Income Tax Slabs 2024-25 New Tax Regime: The income tax rates and slabs for the financial year 2024-25 under the new income tax regime, also known as the Concessional Tax Regime are mentioned in the table.

Income Tax Slabs 2024-25 New Tax Regime: In the new income tax regime, the rebate eligibility threshold is set at Rs 7,00,000, allowing taxpayers to claim a rebate of up to Rs 25,000. Moreover, marginal relief remains available for resident individuals with a net taxable income exceeding Rs 7,00,000, where the incremental income tax liability surpasses the incremental income above Rs 7,00,000.

Income Tax Slabs 2024-25 surcharge rates: Individuals will face a surcharge on their income tax if their total income exceeds Rs 5,000,000. The surcharge rates under the old and the new tax regime are mentioned in the table.

Income Tax FY 2024-25: A health and education cess of 4% is applied to the income tax and surcharge (if applicable) calculated based on the mentioned rates, applicable to all individuals.

Income Tax Slabs 2024-25 New vs Old Regime: The basic difference between the old and new income tax regime is that the former allows for major exemptions and deductions such as Section 80C, Section 80D, Section 80TTA etc. Those opting for the new tax regime can avail lower tax rates depending on the slab they fall under, but the only major exemption available to them is standard deduction.

Income Tax Slabs FY 2024-25 standard deduction: Since no changes were announced in Interim Budget earlier this year, the standard deduction for the financial year 2024-2025 remains unchanged. It will stay at Rs 50,000 for both the old and the new income tax regime.

Income Tax Slabs FY 2024-25 deductions under new income tax regime: Apart from standard deduction, the new income tax regime provides another deduction which is under Section 80CCD (2) for the employer's contribution to the NPS account.

Income Tax Slabs FY 2024-25: Since the new income tax regime is the default income tax regime, it is important for a salaried individual to alert the employer about the choice of tax regime - new or old - at the start of the financial year so that tax deduction happens in accordance. In case you miss out on informing your employer, you can always switch between the regimes at the time of filing your income tax return, provided you file your ITR within the due date.

Income Tax Slabs FY 2024-25: The option to opt out of the new tax regime remains available until filing the return. Individuals eligible, without any business income, can choose between the regimes for each financial year. Therefore, they have the flexibility to select the new tax regime in one financial year and the old tax regime in another, and vice versa.

Income Tax Slabs 2024-25: It's worth noting that while both the old and new tax regimes remain unchanged after this year’s Interim Budget,, adjustments could be made in the full-year Budget 2024 after the Lok Sabha polls in 2024.