RELEVANT TO FINANCIAL YEAR 2024-2025: The normal tax rates applicable to an resident individual will depend on the age of the individual.
For the purpose of ascertainment of the applicable tax slab, an individual can be classified as follows:
• Individual below the age of 60 year, i.e. born on or after 01-04-1965
• Individual of the age of 60 years or above at any time during the year but below the age of 80 year, i.e. born during 01-04-1945 to 31-03-1965
• Individual of the age of 80 years or above at any time during the year, i.e. born before 01-04-1945
The Finance Act 2024 has amended the provisions of Section 115BAC w.e.f AY 2024-25 to make new tax regime the default tax regime for the assessee being an Individual, HUF, AOP (not being co-operative societies), BOI or Artificial Juridical Person. However, the eligible taxpayers have the option to opt out of new tax regime and choose to be taxed under old tax regime. The old tax regime refers to the system of income tax calculation and slabs that existed before the introduction of the new tax regime. In the old tax regime, taxpayers have the option to claim various tax deductions and exemptions.
In “non-business cases”, option to choose the regime can be exercised every year directly in the ITR to be filed on or before the due date specified under section 139(1).
In case of eligible taxpayers having income from business and profession, new tax regime is default regime. If assessee wants to opt out of new tax regime, they can furnish Form-10-IEA on or before the due date u/s 139(1) for furnishing the return of income. Also, for the purpose of withdrawal of such option i.e. opting out of old tax regime shall also be done by way of furnishing Form No.10-IEA. However, option to switch to old tax regime and withdraw the option in any subsequent AY is available only once in lifetime for eligible taxpayers having income from business and profession.
I. In case of an Individual (resident or non-resident) or HUF or Association of Person or Body of Individual or any other artificial juridical person
*Add: Surcharge and Health & Education Cess [see Note]
II. In case of a resident or non-resident senior citizen (who is 60 years or more at any time during the previous year but less than 80 years on the last day of the previous year)
*Add: Surcharge and Health & Education Cess [see Note]
III. In case of a resident or non-resident super senior citizen (who is 80 years or above at any time during the previous year)
Old Tax Regime Slab Rate FY 2023-24
New Tax Regime Slab Rate FY 2023-24
Net Taxable Income
Tax Rate
*Surcharge
Taxable Income
Tax Rate
*Surcharge
Up to ₹ 5,00,000
Nil
Nil
Up to ₹ 3,00,000
Nil
Nil
₹ 3,00,001 to Rs 7,00,000
5% above ₹ 3,00,000
Nil
₹ 7,00,001 to ₹ 10,00,000
₹ 20,000 + 10% above ₹ 7,00,000
Nil
₹ 10,00,001 to ₹ 12,00,000
₹ 50,000 + 15% above ₹ 10,00,000
Nil
₹ 5,00,001 to ₹ 10,00,000
20% above ₹ 5,00,000
Nil
₹ 12,00,001 to ₹ 15,00,000
₹ 80,000 + 20% above ₹ 12,00,000
Nil
₹ 10,00,001 to ₹ 50,00,000
₹ 1,12,500 + 30% above ₹ 10,00,000
Nil
₹ 15,00,001 to ₹ 50,00,000
₹ 1,40,000 + 30% above ₹ 15,00,000
Nil
₹ 50,00,001 to ₹ 1,00,00,000
₹ 1,12,500 + 30% above ₹ 10,00,000
10%
₹ 50,00,001 to ₹ 1,00,00,000
₹ 1,40,000 + 30% above ₹ 15,00,000
10%
₹ 1,00,00,001 to ₹ 2,00,00,000
₹ 1,12,500 + 30% above ₹ 10,00,000
15%
₹ 1,00,00,001 to ₹ 2,00,00,000
₹ 1,40,000 + 30% above ₹ 15,00,000
15%
₹ 2,00,00,001 to ₹ 5,00,00,000
₹ 1,12,500 + 30% above ₹ 10,00,000
25%
Above ₹ 2,00,00,000
₹ 1,40,000 + 30% above ₹ 15,00,000
25%
Above ₹ 5,00,00,000
₹ 1,12,500 + 30% above ₹ 10,00,000
37%
*Add: Surcharge and Health & Education Cess [see Note]
*Note:
1. The enhanced surcharge of 25% & 37%, as the case may be, is not levied, from income chargeable to tax under sections 111A, 112, 112A and Dividend Income. Hence, the maximum rate of surcharge on tax payable on such incomes shall be 15%, except when the income is taxable under section 115A, 115AB, 115AC, 115ACA and 115E.
2. **Rebate u/s 87A: Resident Individuals are also eligible for a Rebate of up to 100% of income tax subject to a maximum limit depending on tax regimes as under:
Tax rebate up to Rs.12,500 is applicable for resident individuals if the total income does not exceed Rs 5,00,000 (not applicable for NRIs
Tax rebate up to Rs.25,000 is applicable for resident individuals if the total income does not exceed Rs 7,00,000 (not applicable for NRIs
From 5 Lakhs to 7 Lakhs
NIL
***Note : Health & Education cess @ 4% to be paid on the amount of income tax plus Surcharge (if any) in both the regimes.
Marginal relief can be claimed from surcharge if the amount of income earned exceeding ₹ 50 lakhs, ₹ 1 crore, ₹ 2 crore or ₹ 5 crores respectively as under:
Net Income Range
Marginal Relief
Exceeds (Rs.)
Does not exceed (Rs.)
50 Lakh
1 Crore
Amount payable as income tax and surcharge shall not exceed the total amount payable as income tax on total income of Rs 50 Lakh by more than the amount of income that exceeds Rs 50 Lakhs
Amount payable as income tax and surcharge shall not exceed the total amount payable as income-tax on total income of Rs. 2 crore by more than the amount of income that exceeds Rs. 2 crore
5 Crore
—-
Amount payable as income tax and surcharge shall not exceed the total amount payable as income-tax on total income of Rs. 5 crore by more than the amount of income that exceeds Rs. 5 crore.
Tax Benefits on Investments / Payments / Incomes
Tax deductions in the New Tax Regime
Following deductions will be available to a taxpayer opting for the New Tax Regime u/s 115BAC:
Deduction in respect of contribution to Agnipath Scheme
Where an assessee, being an individual enrolled in the Agnipath Scheme and subscribing to the Agniveer Corpus Fund on or after the 1st day of November, 2022, has in the previous year paid or deposited any amount in his account in the said fund
Life Insurance PremiumProvident FundSubscription to certain equity sharesTuition FeesNational Savings CertificateHousing Loan PrincipalOther various items
Deduction in respect of contribution to Agnipath Scheme
Where an assessee, being an individual enrolled in the Agnipath Scheme and subscribing to the Agniveer Corpus Fund on or after the 1st day of November, 2022, has in the previous year paid or deposited any amount in his account in the said fund
Allowed a deduction in the computation of total income, of the whole of the amount so paid or deposited
Where the Central Government makes any contribution to the account of an assessee in the Agniveer Corpus Fund
Allowed a deduction in the computation of total income of the whole of the amount so contributed
₹ 5,000 for preventive health check up, included in above limit
Deduction towards Medical Expenditure incurred on a Senior Citizen, if no premium is paid on health insurance coverage
For Self / Spouse or Dependent Children
Deduction limit of ₹ 50,000
For Parents
Deduction limit of ₹ 50,000
Section 80DD
Deduction towards payments made towards maintenance or medical treatment of a Disabled Dependent or Paid / Deposited any amount under relevant approved scheme
Flat deduction of ₹ 75,000 available for a person with Disability, irrespective of expense incurred.The deduction is ₹ 1,25,000 if the person has Severe Disability (80% or more).
Please note: If Taxpayer is claiming deduction u/s 80DD then its recommended to file form 10-IA also before filing of return.
Form 10IA can be filed later also however it is recommended to file form 10-IA along with return of income to avoid any inconvenience later.
Section 80DDB
Deduction towards payments made towards Medical treatment of Self or Dependant for specified diseases
Deduction limit of ₹ 40,000 (₹ 1,00,000 if Senior Citizen)
Deduction available only to individuals towards interest payments made on loan taken for acquisition of residential house property for the first time where the loan is sanctioned between 1st April 2019 to 31st March 2022 & deduction should not have been claimed u/s 80EE
Deduction limit of ₹ 1,50,000 on the interest paid on loan taken
Section 80EEB
Deduction towards interest payments made on loan for purchase of Electric Vehicle where the loan is sanctioned between 1st April 2019 to 31st March 2023
Deduction limit of ₹ 1,50,000 on the interest paid on loan taken
Note: No deduction shall be allowed under this section in respect of donation made in cash exceeding ₹ 2000/-
Section 80GG
Deduction towards rent paid for house & applicable to only those who are self-employed or for whom HRA is not part of SalaryLeast of the following shall be allowed as deduction
Note: No deduction shall be allowed under this Section in respect of donation made in cash exceeding ₹ 2000/- or if Gross Total Income includes income from Profit / Gains of Business / Profession
Deductions for a resident individual taxpayer with Disability
Flat ₹ 75,000 deduction for a person with Disability, irrespective of expense incurredFlat ₹ 1,25,000 deduction for a person with Severe Disability (80% or more), irrespective of expense incurred
Please note: If Taxpayer is claiming deduction u/s 80U then it is recommended to file form 10-IA also before filing of return.
Form 10IA can be filed later also however it is recommended to file form 10-IA along with return of income to avoid any inconvenience later.
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