The taxable income slabs divide taxpayers into categories and assign different tax rates based on age and residency. The main categories are:
- Individuals below 60 years and non-residents
- Resident senior citizens (60 to 80 years)
- Resident super senior citizens (above 80 years)
Slabs also differ depending on whether you choose the old or the new tax regime. Understanding these slabs and rates helps you plan finances and taxes effectively.
Below are the income tax slabs and rates for the financial year 2024-25 under both regimes, along with surcharge details and guidance on who can opt for each regime.
Tax Slabs for FY 2024-25
Taxpayers may choose between the old and the new tax regimes depending on their income, deductions, and investment choices. The Union Budget 2024 revised the taxable income slabs under the new regime. The tables below summarize rates for both regimes.
Tax Rates for the Old Tax Regime
The old tax regime allows taxpayers to claim a variety of deductions and exemptions. The applicable tax rates by age group are:
| Income Slabs | Rates for Taxpayers up to 60 Years & NRIs | Rates for Taxpayers over 60 Years and up to 80 Years | Rates for Taxpayers Above 80 Years |
|---|---|---|---|
| Up to ₹2.5 lakhs | Nil | Nil | Nil |
| Between ₹2.5 lakhs and ₹3 lakhs | 5% | Nil | Nil |
| Above ₹3 lakhs and less than ₹5 lakhs | 5% | 5% | Nil |
| Between ₹5 lakhs and ₹10 lakhs | 20% | 20% | 20% |
| ₹10 lakhs and above | 30% | 30% | 30% |
For incomes above certain thresholds, surcharges apply under the old regime as follows:
| Range of Income | Surcharge Rate |
|---|---|
| Up to ₹50 lakhs | Zero |
| Between ₹50 lakhs and ₹1 crore | 10% |
| Between ₹1 crore and ₹2 crores | 15% |
| Between ₹2 crores and ₹5 crores | 25% |
| Above ₹5 crores | 37% |
Tax Rates for the New Tax Regime
The Union Budget 2024-25 revised the tax rates under the new regime. These rates apply uniformly to all taxpayers who opt for the new regime:
| Income Slabs | Rate for All Taxpayers |
|---|---|
| Up to ₹3 lakhs | Nil |
| Between ₹3 lakhs and ₹7 lakhs | 5% |
| Between ₹7 lakhs and ₹10 lakhs | 10% |
| Between ₹10 lakhs and ₹12 lakhs | 15% |
| Between ₹12 lakhs and ₹15 lakhs | 20% |
| ₹15 lakhs and above | 30% |
Surcharge rates under the new regime are:
| Income Slab | Surcharge Rate |
|---|---|
| Above ₹50 lakhs and less than ₹1 crore | 10% |
| Above ₹1 crore and below ₹2 crores | 15% |
| ₹2 crores and above | 25% |
Who Can Opt for the Old and New Tax Regime?
Choice of regime depends on income type and taxpayer status:
| Nature of Income | Regime Details |
|---|---|
| Salary Income or Other Income Subject to TDS | Employees may choose the regime at the start of the financial year. If no choice is indicated, the new regime applies by default. The regime cannot be changed during the financial year; switching to the old regime is allowed at the start of the next financial year. |
| Income from Business and Profession | Taxpayers with business or professional income typically make a one-time choice of regime as per tax rules governing such incomes. |
Understanding these slabs and rates lets you select the most tax-efficient regime and plan investments to optimise tax liability. Both regimes offer different benefits: the old regime provides deductions and exemptions, while the new regime has lower tax rates but fewer deductions.
FAQs on Income Tax Slabs
What is the new income tax slab for FY 2024-25?
Under the old regime, the basic exemption limit is nil up to ₹2.5 lakhs for individuals below 60 years, extended to ₹3 lakhs for those aged 60–80 years and to ₹5 lakhs for those above 80 years. Under the new regime, the basic exemption limit is ₹3 lakhs for all taxpayers. The slabs and rates for both regimes are summarized below:
| Old Tax Regime | New Tax Regime | ||
| Tax Slab | Tax Rate | Tax Slab | Tax Rate |
| Up to ₹2.5 lakhs | Nil | Up to ₹3 lakhs | Nil |
| Between ₹2.5 lakhs and ₹3 lakhs | 5% | Between ₹3 lakhs and ₹7 lakhs | 5% |
| Above ₹3 lakhs and less than ₹5 lakhs | 5% | Between ₹7 lakhs and ₹10 lakhs | 10% |
| Between ₹5 lakhs and ₹10 lakhs | 20% | Between ₹10 lakhs and ₹12 lakhs | 15% |
| ₹10 lakhs and above | 30% | Between ₹12 lakhs and ₹15 lakhs | 20% |
| ₹15 lakhs and above | 30% | ||
Is filing income tax returns compulsory?
Yes. Individuals aged 18 and above with taxable income are required to file income tax returns and pay taxes as applicable.
Is there any standard deduction for FY 2024-25?
For FY 2024-25, standard deductions are available as follows: up to ₹50,000 under the old regime and up to ₹75,000 under the new regime.