Income Tax Slabs for FY 2024-25 (AY 2025-26)

The income tax slab for FY 2024-25 are: Rs.0 to Rs. 3 lakh - Nil; Rs. 3 lakh to Rs. 7 lakh - 5%; Rs. 7 lakh to Rs. 10 lakh - 10%, Rs. 10 lakh to Rs. 12 lakh - 15%; Rs. 12 lakh to Rs. 15 lakh- 20%; Above Rs. 15 lakh - 30%

Key Highlights

• The new tax regime is the default tax regime for FY 2024-25 (AY 2025-26)
• The basic exemption limit is Rs. 2.5 lakhs under the old regime and Rs 3 lakh under the new regime.
• The due date for filing ITR for FY 2024-25 is extended to 15th September, 2025.

Income Tax Slab for FY 2024-25 Under New Regime

The income tax slabs of FY 2024-25 (AY 2025-25) for the new tax regime are as follows:

Income Tax Slabs for FY 2024-25 Under Old Regime

The income tax slabs under the old regime differ according to the age and residential status of the individual. The old tax regime slabs and rates for FY 2024-25 (AY 2025-26) are as follows:

1. Income Tax Slabs for Individuals Less than 60 years and Non-Residents

For non-residents and residents aged less than 60 years, there are no beneficial slab rates. They are as follows:

2. Income Tax Slabs for Senior Citizens (60–80 years)

For resident senior citizens, the income tax slabs under the old regime are slightly relaxed, making it comparatively beneficial for them. They are as follows:

3. Income Tax Slabs for Super Senior Citizens (>80 years)

For resident individuals aged more than 80 years, the income tax slabs under the old regime are as follows:

New Tax Regime v/s Old Tax Regime for FY 2024-25 - Which is Better?

• For taxpayers with more tax-saving deductions (up to a few lakhs), the old regime is the most beneficial.
• For middle-class income earners and taxpayers with fewer tax-saving deductions, the new regime is the most beneficial.
• The following table shows the break-even deduction for different income levels. If the taxpayer has deductions above the break-even deductions, the old regime will be the most beneficial. Otherwise, the new regime will be the most desirable choice.

• For a deduction level of Rs. 4 lakhs, the most beneficial regime is tabulated below:

Tax Calculation under the Old and New Regime - An Illustration

Mr. A had an income of Rs. 9 lakh for FY 2024-25 (AY 2025-26). His tax liability under the new regime will be computed as follows:

A standard deduction of Rs. 75,000 will be available to Mr. A, after which his taxable income will be Rs. 8,25,000. The final tax liability of Mr. A will be Rs. 33,800 after a standard deduction of Rs. 75,000. 

Tax calculation under the old regime is given below:

A standard deduction of Rs. 50,000 will be available to Mr. A, after which his taxable income will be Rs. 8.5 lakhs. The final tax liability of Mr. A will be Rs. 85,800 after a standard deduction of Rs. 50,000. 

The Bottom Line: For middle income earners with meagre to nil tax saving deductions, the new regime is more beneficial

How to Choose Between the Old & New Income Tax Regimes for FY 2024-25?

• The new tax regime is the default tax regime for FY 2024-25.
• If you do not exercise any choice, the new regime will be automatically selected for you.
• However, you can opt for the old regime for FY 2024-25 if it is more beneficial for you.
• If you have business income for FY 2024-25, you can opt for the old regime by filing Form 10-IEA.
• If you file Form 10-IEA for FY 2024-25, it holds good for all future years as well. You don't have to file Form  10-IEA for every financial year. 
• In any succeeding years, if the new regime is more beneficial for you, you can file a Form 10-IEA again, opting again for the new regime. However, this choice is available only once in a lifetime.

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Income Tax Slabs for FY 2025-26