Income Tax Slabs 2024–25 (Assessment Year 2025–26): Complete Guide

 

Overview

The Government of India has announced the latest Income Tax Slabs applicable for Financial Year 2024–25 (Assessment Year 2025–26). The tax rates differ for individuals opting for the Old Tax Regime and those under the New Simplified Regime introduced under Section 115BAC of the Income Tax Act.

Let’s understand both systems clearly.

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💰 New Tax Regime (Default from FY 2024–25)

Income Range (₹)	Tax Rate
Up to ₹3,00,000	Nil
₹3,00,001 – ₹6,00,000	5%
₹6,00,001 – ₹9,00,000	10%
₹9,00,001 – ₹12,00,000	15%
₹12,00,001 – ₹15,00,000	20%
Above ₹15,00,000	30%

Key Benefits of New Regime:

• No tax up to ₹7 lakh (after rebate under section 87A)

• Lower tax rates for most income groups

• Simpler compliance and no need for multiple deductions

• Standard deduction of ₹50,000 available for salaried individuals and pensioners

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💼 Old Tax Regime (Optional for FY 2024–25)

Income Range (₹)	Tax Rate
Up to ₹2,50,000	Nil
₹2,50,001 – ₹5,00,000	5%
₹5,00,001 – ₹10,00,000	20%
Above ₹10,00,000	30%

Benefits under Old Regime:

• Continue claiming deductions like:

  • Section 80C (up to ₹1.5 lakh)

  • Section 80D (Health Insurance)

  • HRA, LTA, Home Loan Interest, etc.

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🧮 Which Regime Should You Choose?

If you have fewer deductions, the New Regime is better due to lower tax rates.
If you invest regularly in PF, ELSS, NPS, or Home Loan, the Old Regime might save you more.

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📝 Rebate & Surcharge

• Rebate under Section 87A: Taxpayers with income up to ₹7 lakh (New Regime) or ₹5 lakh (Old Regime) pay zero tax.

• Surcharge: 10% to 25% applies to high-income groups (above ₹50 lakh).

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📢 Important Update (Budget 2024)

• The New Regime is now default, but taxpayers can still opt for the Old Regime while filing ITR.

• Senior citizens (above 60 years) enjoy the same slabs as others in the New Regime.

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🧾 Conclusion

Understanding income tax slabs helps in effective financial planning and choosing the right regime.
Whether you’re a salaried employee, businessperson, or pensioner, select the system that maximizes your take-home income.

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📅 Published by Punjab Notification

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