Income tax is a direct tax which follows a progressive slab system, where tax rates increase with higher income. The taxpayers can choose between the old regime, which offers deductions and exemptions, and the new regime, which offers lower tax rates but without deductions and exemptions. In this article, we will explore the different slabs under both the old and new regimes and help you understand which one is more beneficial for you.
Income Tax Slabs for FY 2025-26 (AY 2026-27)
Under the Budget 2025, individuals with income up to Rs. 12,00,000 will have zero tax liability for FY 2025-26 (AY 2026-27) under the new tax regime. The revised tax slabs are as follows:
| Income Tax Slabs | Income Tax Rates |
| Upto Rs.4 lakh | NIL |
| Rs. 4 lakh – Rs.8 lakh | 5% |
| Rs.8 lakh – Rs.12 lakh | 10% |
| Rs.12 lakh – Rs.16 lakh | 15% |
| Rs.16 lakh – Rs.20 lakh | 20% |
| Rs.20 lakh – Rs.24 lakh | 25% |
| Above Rs.24 lakh | 30% |
With the revised tax structure, individuals earning up to Rs.12,00,000 will have no tax liability due to the increased rebate of Rs.60,000. For salaried individuals, the tax liability will be zero for incomes up to Rs.12,75,000, due to the Rs.75,000 standard deduction.
Note:
- The marginal relief on the rebate is still applicable.
- The rebate is not available for income that is taxed at special rates (e.g., capital gains under section 112A).
Tax Savings Across Various Income Levels
The revisions to the tax slabs will lead to substantial savings for taxpayers. Here’s a breakdown of the tax savings across different income levels:
| Taxable Income | New Regime (Pre Budget 2025) | New Regime (Post Budget 2025) | Savings | Savings % |
| 10,00,000 | 44,200 | 0 | 44,200 | 100% |
| 12,00,000 | 71,500 | 0 | 71,500 | 100% |
| 15,00,000 | 1,30,000 | 97,500 | 32,500 | 25% |
| 18,00,000 | 2,15,800 | 1,50,800 | 65,000 | 30% |
| 20,00,000 | 2,78,200 | 1,92,400 | 85,800 | 31% |
| 25,00,000 | 4,34,200 | 3,19,800 | 1,14,400 | 26% |
| 30,00,000 | 5,90,200 | 4,75,800 | 1,14,400 | 19% |
| 40,00,000 | 9,02,200 | 7,87,800 | 1,14,400 | 13% |
Let’s understand the tax liability and rebate eligibility for different levels of income:
Scenario 1 – If your income is Rs.11.9 lakh
- Your tax liability will be Nil as your income is below Rs.12 lakh, as you will be eligible for rebate under section 87A.
Scenario 2 – If your income is Rs. 12.75 lakh
- If you are a salaried individual, your tax liability will be nil.
- You can claim a standard deduction of Rs. 75,000.
- This deduction makes you eligible for a rebate under Section 87A, as your income is below Rs. 12 lakh.
Scenario 3 – If your income is Rs. 14 lakh
Since the income exceeds Rs. 12.75 lakh, the rebate will no longer apply, and the income will be taxed according to the applicable slab rates.
Taxable income: Rs. 14 lakh – Rs. 75,000 = Rs. 13.25 lakh
Tax Calculation:
| Slabs | Rate | Calculation | Amount |
| Rs. 0 – Rs. 4 lakhs | 0% | Not applicable | Nil |
| Rs. 4 lakhs – Rs. 8 lakhs | 5% | 4,00,000 x 5% | 20,000 |
| Rs. 8 lakhs – Rs. 12 lakhs | 10% | 4,00,000 x 10% | 40,000 |
| Rs. 12 lakhs – Rs. 13.25 lakhs | 15% | 1,25,000 x 15% | 18,750 |
| Total Tax Liability | 78,750 | ||
Key Interpretations
- Income up to Rs. 4 lakhs is exempt from tax.
- Due to the rebate under Section 87A, non-salaried employees with income up to Rs. 12 lakh will have zero tax liability.
- For salaried employees, income up to Rs. 12.75 lakh will have zero tax liability due to the standard deduction of Rs. 75,000 and rebate.
- Any income exceeding Rs. 12.75 lakh will be taxed according to the applicable tax slabs.
Income Tax Slabs for FY 2024-25 (AY 2025-26) Under New Tax Regime
The tax slabs for FY 2024-25 (AY 2025-26) are as follows:
| Income Tax Slabs | Income Tax Rates |
| Up to Rs. 3 lakh | NIL |
| Rs. 3 lakh – Rs. 7 lakh | 5% |
| Rs. 7 lakh – Rs.10 lakh | 10% |
| Rs. 10 lakh – Rs.12 lakh | 15% |
| Rs.12 lakh – Rs.15 lakh | 20% |
| Above Rs.15 lakh | 30% |
Note:
- Rebate: Tax rebate up to Rs.25,000 is applicable if the total income does not exceed Rs.7,00,000 (not applicable for NRIs). Therefore, no tax for an income up-to Rs.7,00,000.
- Standard Deduction: The standard deduction for salaried employees is Rs.75,000 under the new regime.
- Deduction under Family Pension: The deduction on family pension received has been increased from Rs.15,000 to Rs.25,000.
- Standard Deduction: The standard deduction for salaried employees is Rs.75,000 under the new regime.
- NPS Contribution: The deduction limit on employer’s contribution to NPS is 14% for FY 2024-25.
As a result of the above changes, a salaried employee in the new tax regime can save up to Rs.17,500 in taxes.
The new regime is the default tax regime. If individuals want to choose the old regime then they have to file Form 10-IEA. The highest surcharge rate is 25% under the new regime as opposed to 37% in the old regime.
Revised Income Tax Slabs Under the New Regime:
The tax slabs is modified by the government for FY 2024-25. This has resulted in certain relaxations. The gist of changes made in the slab rates is given below:
| Income Tax Slabs for FY 2023-24 | Tax Rates (FY 2023-24) | Income Tax Slabs for FY 2024-25 | Tax Rates (FY 2024-25) | Changes |
| Up to Rs.3 lakh | NIL | Up to Rs.3 lakh | NIL | No Change |
| Rs.3 lakh – Rs.6 lakh | 5% | Rs.3 lakh – Rs.7 lakh | 5% | Slab expanded by Rs.1 lakh |
| Rs.6 lakh – Rs.9 lakh | 10% | Rs.7 lakh – Rs.10 lakh | 10% | Slab expanded by Rs.1 lakh |
| Rs.9 lakh – Rs.12 lakh | 15% | Rs.10 lakh – Rs.12 lakh | 15% | No Change in Rate; New Threshold |
| Rs.12 lakh – Rs.15 lakh | 20% | Rs.12 lakh – Rs.15 lakh | 20% | No Change |
| Above Rs.15 lakh | 30% | Above Rs.15 lakh | 30% | No Change |
Income Tax Slabs for FY 2024-25 (AY 2025-26) Under Old Regime
There were no changes made to the tax slabs under the old regime in the budget 2024. The tax slabs under the old regime are as follows:
| Income Slabs | Age < 60 years & NRIs | Age of 60 Years to 80 years (Resident Individuals) | Age above 80 Years (Resident Individuals) |
| Up to Rs.2.5 lakh | NIL | NIL | NIL |
| Rs.2.5 lakh – Rs.3 lakh | 5% | NIL | NIL |
| Rs.3 lakh – Rs.5 lakh | 5% | 5% | NIL |
| Rs.5 lakh – Rs.10 lakh | 20% | 20% | 20% |
| Rs.10 lakh and above | 30% | 30% | 30% |
NOTE: Surcharge and cess will be applicable.
Old vs New Tax Regime Slabs Comparison for FY 2024-25 (AY 2025-26)
| Tax Slabs | Old Tax Regime Rates | New Tax Regime Rates |
| Up to Rs.2.5 lakh | NIL | NIL |
| Rs.2.5 lakh – Rs.3 lakh | 5% | NIL |
| Rs.3 lakh – Rs.5 lakh | 5% | 5% |
| Rs.5 lakh – Rs.6 lakh | 20% | 5% |
| Rs.6 lakh – Rs.7 lakh | 20% | 5% |
| Rs.7 lakh – Rs.9 lakh | 20% | 10% |
| Rs.9 lakh – Rs.10 lakh | 20% | 10% |
| Rs.10 lakh – Rs.12 lakh | 30% | 15% |
| Rs.12 lakh – Rs.15 lakh | 30% | 20% |
| Rs.15 lakh and above | 30% | 30% |
Income Tax Slab Calculation for AY 2025-26 (FY 2024-25)
| New Regime | |
| Income Slabs | Income Tax Rates |
| Up to Rs.3 lakh | Nil |
| Rs.3 lakh to Rs.7 lakh | 5% on income which exceeds Rs.3 lakh |
| Rs.7 lakh to Rs.10 lakh | Rs.20,000 + 10% on income more than Rs.7 lakh |
| Rs.10 lakh to Rs.12 lakh | Rs.50,000 + 15% on income more than Rs.10 lakh |
| Rs.12 lakh to Rs.15 lakh | Rs.80,000 + 20% on income more than Rs.12 lakh |
| Above Rs.15 lakh | Rs.1,40,000 + 30% on income more than Rs.15 lakh |
| Old Regime | |||||
| For Normal Tax Payers | For Residents Aged 60-80 Years | For Residents Aged Greater Than 80 Years | |||
| Income Slabs | Income Tax Rates | Income Slabs | Income Tax Rates | Income Slabs | Income Tax Rates |
| Up to Rs.2.5 lakh | Nil | Upto Rs.3 lakh | NIL | Upto Rs.5 lakh | NIL |
| Rs.2.5 lakh – Rs.5 lakh | 5% on income which exceeds Rs.2.5 lakh | Rs.3 lakh – Rs.5 lakh | 5% on income which exceeds Rs.3 lakh | Rs.5 lakh – Rs.10 lakh | 20% on income which exceeds Rs.5 lakh |
| Rs.5 lakh – Rs.10 lakh | Rs.12,500 + 20% on income more than Rs.5 lakh | Rs.5 lakh – Rs.10 lakh | Rs.10,000 + 20% on income more than Rs.5 lakh | Rs.10 lakh and above | Rs.1,00,000 + 30% on income more than Rs.10 lakh |
| Rs.10, lakh and above | Rs.1,12,500 + 30% on income more than Rs.10 lakh | Rs.10 lakh and above | Rs.1,10,000 + 30% on income more than Rs.10 lakh | – | – |
Individuals with net taxable income less than or equal to Rs.5 lakh will be eligible for tax rebate u/s 87A under the old tax regime, i.e. tax liability will be NIL.
Important Points to note if you select the new tax regime:
- Please note that the tax rates in the New tax regime are the same for all categories of Individuals, i.e. Individuals, Senior citizens, and Super senior citizens.
- Individuals with net taxable income less than or equal to Rs.7 lakh will be eligible for tax rebate u/s 87A, i.e. tax liability will be NIL under the new regime.
The tax slabs under the new tax regime across different years is shown below.
What is Marginal Relief?
Marginal relief is a benefit offered to taxpayers whose income slightly exceeds the threshold at which they would otherwise have zero tax liability i.e. exceeds Rs. 12,00,000 for FY 2025-26.
It ensures that the tax payable does not excessively surpass the incremental income earned.
Here’s the comparison of tax payable with and without marginal relief:
| Total Income | Income Tax without marginal relief | Income Tax with marginal relief | Savings |
| Rs. 12 lakhs | 0 | 0 | 0 |
| Rs. 12.2 lakhs | 63,000 | 20,000 | -43,000 |
| Rs. 12.5 lakhs | 67,500 | 50,000 | -17,500 |
| Rs. 12.7 lakhs | 70,590 | 70,590 | 0 |
Example: Marginal relief Calculation at the income level Rs. 12,50,000:
| Income Details | Amount |
| Income threshold for zero tax (A) | Rs. 12,00,000 |
| Total Income (B) | Rs.12,50,000 |
| Taxable Income | Rs. 12,50,000 |
| Excess Income (C = B-A) | Rs. 50,000 |
| Tax Liability on ₹12,50,000 at slab rate (D) | Rs. 67,500 |
| Marginal Relief (D-C) | Rs. 17,500 |
| Tax Payable due to Marginal Relief (Lower of C and D) | Rs. 50,000 |
*Calculation is done excluding cess
What is Surcharge?
If income exceeds a certain threshold, additional taxes must be paid over and above existing tax rates. This is an additional tax on High-Income Earners.
Surcharge rates are as below:
| Total Income | Surcharge Rate |
| > Rs. 50 lakh and < Rs. 1 crore | 10% |
| > Rs. 1 crore and < Rs. 2 crore | 15% |
| > Rs. 2 crore and < Rs. 5 crore | 25% |
| > Rs. 5 crore | 37% |
*The highest surcharge rate of 37% has been reduced to 25% under the new tax regime. (applicable from 1st April 2023)
- Surcharge rates of 25% or 37% will not apply to the income from dividends and capital gains taxable under sections 111A (Short Term Capital Gain on Shares), 112A (Long Term Capital Gain on Shares), and 115AD (Tax on the income of Foreign Institutional Investors). Therefore, the highest surcharge rate on the tax payable for such incomes will be 15%.
- The surcharge rate for an Association of Persons (AOP) consisting entirely of companies will also be limited to 15%.
Additional Health and Education cess at the rate of 4% will be added to the income tax liability.
What are the Exemptions and Deductions Not Available Under the New Regime?
The following are some of the major deductions and exemptions that are not available under the new tax regime:
Salary:
- Professional tax and entertainment allowance on salaries
- Leave Travel Allowance (LTA)
- House Rent Allowance (HRA)
- Allowances to MPs/MLAs
- Helper allowance
- Children education allowance
- Other special allowances [Section 10(14)]
House property:
- Interest on housing loan on the self-occupied property or vacant property (Section 24)
Other sources:
- Minor child income allowance
Business or profession:
- Additional depreciation under section 32(1)(iia)
- Deductions under section 32AD, 33AB, 33ABA
- Various deductions for donation for or expenditure on scientific research contained in section 35(2AA) or 35(1)(ii) or (iia) or (iii)
- Deduction under section 35AD or section 35CCC
- Exemption under section 10AA for SEZ units
Chapter VI A deductions:
- The deduction under Section 80TTA/80TTB
- Section 80C, 80D, 80E and so on, except Section 80CCD(2) and Section 80JJAA
- Exemption or deduction for any other perquisites or allowances including food allowance of Rs.50/meal subject to 2 meals a day
- Employee’s (own) contribution to NPS
- Donation to Political party/trust, etc
What are the Exemptions and Deductions Available Under the New Regime?
The following are deductions and exemptions that are available under the new tax regime:
Salary:
- Transport allowances in case of a specially-abled person.
- Conveyance allowance received to meet the conveyance expenditure incurred as part of the employment.
- Any compensation received to meet the cost of travel on tour or transfer.
- Daily allowance received to meet the ordinary regular charges or expenditure you incur on account of absence from his regular place of duty.
- Perquisites for official purposes
- Exemption on voluntary retirement 10(10C), gratuity u/s 10(10) and Leave encashment u/s 10(10AA)
- Budget 2023 introduced a standard deduction of Rs.50,000 under New Tax Regime applicable from FY 2023-24. This has been increased to Rs.75,000 in Budget 2024 applicable from FY 2024-25
House property:
- Interest on Home Loan on let-out property (Section 24)
Other sources:
- Gifts up to Rs. 50,000
- Budget 2023 also introduced deduction under Section 57(iia) of family pension income. In Budget 2024 Limit of maximum Deduction under Family Pension has been increased from Rs.15,000 to Rs.25,000.
Chapter VI A deductions:
- Deduction for employer’s contribution to NPS account [Section 80CCD(2)]
- Deduction for additional employee cost (Section 80JJA)
- Budget 2023 further introduced deduction of amount paid or deposited in the Agniveer Corpus Fund under Section 80CCH(2)
- The deduction on employers contribution to pension Scheme as per Section 80CCD (2) has been increased from 10% of salary to the 14% of salary in Budget 2024.
Old Tax Regime Vs New Tax Regime – Analysis of Deductions
A comparative analysis of deductions available in new regime and old regime is given below:
| Deduction | Old Regime | New Regime |
| House Rent Allowance | Exemption up to a certain limit.Calculate now | NOT AVAILABLE |
| Relocation Allowance | AVAILABLE | NOT AVAILABLE |
| Leave Travel Allowance | Actual travel ticket expenses exempt for two trips in 4 years under 10(5). Read more | NOT AVAILABLE |
| Transport allowances in case of a specially-abled person. | AVAILABLE | AVAILABLE |
| Conveyance allowance received to meet the conveyance expenditure incurred as part of the employment. | AVAILABLE | AVAILABLE |
| Any compensation received to meet the cost of travel on tour or transfer. | AVAILABLE | AVAILABLE |
| Daily allowance received to meet the ordinary regular charges or expenditure you incur on account of absence from his regular place of duty. | AVAILABLE | AVAILABLE |
| Perquisites for official purposes | AVAILABLE | AVAILABLE |
| Mobile Reimbursement | Exempt if:– used predominantly for office purposes– proofs/bills submitted | NOT AVAILABLE |
| Food Expenses | Rs.50 per meal (max 2 meals a day)Annual=Rs.26,400 (50*2*22 days*12 months) | NOT AVAILABLE |
| Children’s Education and Hostel allowance | Rs. 4,800 per child (max 2 children) | NOT AVAILABLE |
| Exemption on voluntary retirement 10(10C), gratuity u/s 10(10) and Leave encashment u/s 10(10AA) | AVAILABLE | AVAILABLE |
| Professional Tax Deduction under section 16 | AVAILABLE | NOT AVAILABLE |
| Standard deduction | Rs.50,000 | Rs.75,000 |
| Interest on Home Loan on let-out property (Section 24) | AVAILABLE | AVAILABLE |
| Interest on Home Loan on Self-occupied property (Section 24) | Allowed to the extent of Rs.2,00,000 | NOT AVAILABLE |
| Gifts up to Rs.50,000 | AVAILABLE | AVAILABLE |
| Family Pension u/s 57(iia) : | One third of pension amount subject to a maximum limit of Rs.15,000 for FY 2025-2026. | One third of pension amount subject to a maximum limit of Rs.25,000 for Fy 2025-2026. |
| Deduction for additional employee cost (Section 80JJA) | AVAILABLE | AVAILABLE |
| Section 80CCH(2) deduction of amount paid or deposited in the Agniveer Corpus Fund | Available for the entire contribution made by applicants and the Central Government | Available for the entire contribution made by applicants and the Central Government |
| Deduction for employer’s contribution to NPS account [Section 80CCD(2)] | Actual contribution subject to a maximum limit of 10% of the salary | Actual contribution subject to a maximum limit of 14% of the salary |
| Section 80C:Investments made in pension funds, mutual funds, ULIPs, government savings schemes, life insurance premiums, home loan principal amount, education fees, etc. | Rs.1,50,000 | NOT AVAILABLE |
| Section 80CCD: Additional exemption for investment in the National Pension Scheme. | Rs.50,000 | NOT AVAILABLE |
| Section 80D: Tax deduction on health insurance premium payments made towards self or parents. | Self, your spouse, and your dependent children:Rs.25,000 (Rs.50,000 if aged 60 and above)Parents: Rs.25,000 (Rs.50,000 if aged 60 and above) | NOT AVAILABLE |
| 80TTA: Deduction on Savings account interest. | Rs.10,000 | NOT AVAILABLE |
| 80TTB: Deduction on interest on Deposits. | Rs.50,000 (Only for Senior Citizens) | NOT AVAILABLE |
| 80G: Donations to charitable organisations | AVAILABLE | NOT AVAILABLE |
| Maturity amount of a Life InsurancePolicy | Maturity proceeds are tax-exempt if the sum assured is ≤:– 20%: policies issued before 1 April 2012– 10%: policies issued after 1 April 2012– 15%: policies issued after 1 April 2013 for a person with disability or disease. | Maturity proceeds are tax-exempt if the sum assured is ≤:– 20%: policies issued before 1 April 2012– 10%: policies issued after 1 April 2012– 15%: policies issued after 1 April 2013 for a person with disability or disease. |
Here’s a detailed list of exemptions and deductions available under the Old vs New Regime.
Old Tax Regime Vs New Tax Regime – Which is Better?
The new tax regime can largely benefit middle-class taxpayers who have a taxable income of up to Rs.15 lakh. The old regime is a better option for high-income earners.
Since the Basic Exemption Limit of Rs.5,00,000 is relaxed for super-senior citizens, the old regime is beneficial for them, even if they are middle-class earners.
The new income tax regime is beneficial for people who make low investments. As the new regime offers six lower-income tax slabs, anyone paying taxes without claiming tax deductions can benefit from paying a lower rate of tax under the new tax regime. For instance, the assessee having total income before deduction up to Rs.12 lakh will have higher tax liability under the old system if they have investments less than Rs.3,12,500. Therefore, if you invest less in tax-saving schemes, go for the new regime.
That being said, if you already have in place a financial plan for wealth creation by making investments in tax-saving instruments; medical claims and life insurance; making payments of children’s tuition fees; payment of EMIs on education loan; buying a house with a home loan; and so on, the old regime helps you with higher tax deductions and lower tax outgo.
In light of the above and considering the new income tax regime, if taxpayers want to opt for the concessional tax rates, they may evaluate both regimes. Hence, it is advisable to do a comparative evaluation and analysis under both regimes and then choose the most beneficial one, as it may vary from person to person.
When Can I Opt for Old vs New Regime?
| Nature of Income | Time of Selection of option of old vs new regime |
| Income from Salary or any other head of income attracting TDS | Choice to be made by the employee at the beginning of the financial year. Though the choice cannot be changed during the year, It can be changed at the time of filing Income Tax Return. |
| Income from Business & Profession | In case you have Business or professional income, the choice between tax regimes can only be made once in a lifetime. |
Income Tax Rate for Domestic Companies
| Particulars | Old regime Tax rates | New Regime Tax rates |
| Company opts for section 115BAB (not covered in sections 115BA and 115BAA) & is registered on or after October 1, 2019, and has commenced manufacturing on or before 31st March 2024 and subject to the conditions specified in the section. | – | 15% |
| Company opts for Section 115BAA, wherein the total income of a company has been calculated without claiming specified deductions, incentives, or exemptions and additional depreciation as specified in the section. | – | 22% |
| The company opts for section 115BA registered on or after March 1, 2016 and engaged in the manufacture of any article or thing and does not claim the deduction as specified in the section. | – | 25% |
| Turnover or gross receipt of the company is less than Rs.400 crore in the previous year 2020-21 | 25% | 25% |
| Any other domestic company | 30% | 30% |
*Please refer to the new sections for checking the applicability for the above concessional income tax rates.
NOTE:
- Additional Health and Education cess at the rate of 4 % will be added to the income tax liability in all cases.
- Surcharge applicable for companies is as below:
- 7% of Income tax where total income > Rs.1 crore,
- 12% of Income tax where total income > Rs.10 crore,
- 10% of income tax where domestic company opted for section 115BAA and 115BAB.
Income Tax Rate for Partnership Firm or LLP as per Old/New Regime
A partnership firm/ LLP is taxable at 30%.
NOTE:
- 12% Surcharge is levied on income is more than Rs.1 crore
- Health and Education Cess at the rate of 4% will be applicable
- No concessional rates are introduced for firms LLPs in the next tax regime
Income Tax Slab for FY 2024-25 for Domestic Companies
| Turnover Particulars | Tax Rate |
| Gross turnover up to 400 Cr. in the previous year | 25% |
| Gross turnover exceeding 400 Cr. in the previous year | 30% |
NOTE:
- In addition cess and surcharge are levied as follows:
- Cess: 4% of corporate tax
- Surcharge applicability:
- Taxable income is more than 1 Crore but less than 10 Crores: 7%
- Taxable income is more than 10 Crores: 12%
Income Tax Slab Rates for FY 2019-20, FY 2020-21, FY 2021-22 and FY 2022-23
Income Tax Slab for Individual Aged Below 60 Years & HUF
| Income Tax Slab | Tax Rates for Individual & HUF Below the Age Of 60 Years & NRIs |
| Up to Rs.2.5 lakh* | Nil |
| Rs.2.5 lakh to Rs.5 lakh | 5% |
| Rs.5 lakh to Rs.10 lakh | 20% |
| Above Rs.10 lakh | 30% |
NOTE:
- Income tax exemption limit is up to Rs.2,50,000 for Individuals, HUF below 60 years aged and NRIs
- Surcharge and cess will be applicable as discussed above
- An additional 4% Health & education cess will be applicable on the tax and surcharge amount
Income Tax Slab for Individual Aged Above 60 Years to 80 Years
| Income Tax Slab | Tax Rates for Senior citizens aged above 60 Years & Less than 80 Years |
| Up to Rs.3 lakh* | No tax |
| Rs.3 lakh – Rs.5 lakh | 5% |
| Rs.5 lakh – Rs.10 lakh | 20% |
| More than Rs.10 lakh | 30% |
NOTE:
- Income tax exemption limit is up to Rs.3 lakh for senior citizens aged above 60 years but less than 80 years.
- Surcharge and cess will be applicable as discussed above
Income Tax Slab for Individual Aged More Than 80 Years
| Income Tax Slab | Tax Rates for Super Senior Citizens (Aged 80 Years And Above) |
| Up to Rs.5 lakh* | No tax |
| Rs.5 lakh – Rs.10 lakh | 20% |
| More than Rs.10 lakh | 30% |
NOTE:
- Income tax exemption limit is up to Rs.5 lakh for super senior citizen aged above 80 years.
- Surcharge and cess will be applicable as discussed above.
Income Tax Slab FY 2019-20, FY 2020-21, FY 2021-22 and FY 2022-23 for Domestic Companies
| Turnover Particulars | Tax Rate |
| Gross turnover up to 250 Cr. in the previous year | 25% |
| Gross turnover exceeding 250 Cr. in the previous year | 30% |
NOTE:
- In addition cess and surcharge are levied as follows:
- Cess: 4% of corporate tax
- Surcharge applicability:
- Taxable income is more than 1 Crore but less than 10 Crores: 7%
- Taxable income is more than 10 Crores: 12%
FY 2018-19: Income Tax Slab Rates
Income Tax Slab for Individual Aged Below 60 Years & HUF
| Income Tax Slab | Tax Rates for Individual & HUF Below the Age Of 60 Years |
| Income up to Rs.2.5 lakh* | No tax |
| Income from Rs.2.5 lakh – Rs.5 lakh | 5% |
| Income from Rs.5 lakh – 10 lakh | 20% |
| Income more than Rs.10 lakh | 30% |
NOTE:
- An additional 4% Health & education cess will be applicable on the tax amount calculated as above.
- Surcharge applicability:
- 10% of income tax, where total income exceeds Rs.50 lakh up to Rs.1 crore.
- 15% of income tax, where the total income exceeds Rs.1 crore.
Income Tax Slab for Individuals Aged Above 60 Years to 80 Years
| Income Tax Slab | Tax Rate for Senior citizens aged 60 Years But Less than 80 Years |
| Income up to Rs.3 lakh* | No tax |
| Income from Rs.3 lakh – Rs.5 lakh | 5% |
| Income from Rs.5 lakh – 10 lakh | 20% |
| Income more than Rs.10 lakh | 30% |
NOTE:
- An additional 4% Health & education cess will be applicable on the tax amount calculated as above.
- Surcharge applicability:
- 10% of income tax, where total income exceeds Rs.50 lakh up to Rs.1 crore.
- 15% of income tax, where the total income exceeds Rs.1 crore.
Income Tax Slab for Individuals Aged More Than 80 Years
| Income Tax Slab | Tax Rates for Super Senior Citizens (Aged 80 Years And Above) |
| Income up to Rs.5 lakh* | No tax |
| Income from Rs.5 lakh – Rs.10 lakh | 20% |
| Income more than Rs.10 lakh | 30% |
NOTE:
- An additional 4% Health & education cess will be applicable on the tax amount calculated as above.
- Surcharge applicability:
- 10% of income tax, where total income exceeds Rs.50 lakh up to Rs.1 crore.
- 5% of income tax, where the total income exceeds Rs.1 crore
Can I claim 80C deductions and opt for a new income tax slab regime?
No, the new tax regime does not allow many deductions and exemptions which are otherwise available in the old tax regime. Deductions u/s 80C cannot be claimed if the taxpayer is opting for a New tax regime
What is the meaning of rebate under section 87A under the IT Act?
Section 87A provides a rebate for individual taxpayers whose income is below a specified threshold. Under the new tax regime, the limit is Rs. 7 lakh, while under the old regime, it is Rs. 5 lakh. If your income falls within these limits, your tax liability will be reduced to zero.
How much income is tax free in India?
Individual below 60 years of age are not required to pay tax upto the income limit of ₹ 2.5 Lakh under old regime. Individuals above 60 years but less than 80 years of age are not required to pay tax upto ₹ 3 lakh of income under old regime. Individuals above 80 years are not required to pay tax upto ₹ 5 lakh of income under old regime. The basic exemption limit for all the individuals under the new tax regime is ₹ 3 lakh, irrespective of age.
Do I have to mandatorily opt for a New tax regime while filing returns for AY 2025-26?
No, taxpayers have the freedom to select the tax regimes. If one needs to opt for the old regime and claim deductions, exemptions, and losses must file their income tax returns by opting out of the new regime. If the taxpayer does not opt out, the new regime is chosen as default tax regime.
Is standard deduction applicable in the new tax regime?
Yes, the standard deduction is allowed under the new tax regime for FY 2024-25.
Standard deductions is allowed against salary income. ₹75,000 deduction is available under the new tax regime and ₹50,000 is available under the old regime respectively.
What deductions are allowed in the new tax regime?
One can claim a few selective deductions under the new tax regime for FY 2024-25, such as a standard deduction of ₹75,000, interest on Home Loan u/s 24b on let-out property, employer’s contribution to NPS u/s 80CCD, Contributions to Agniveer Corpus Fund u/s 80CCH, Deduction on Family Pension Income (lower of 1/3rd of actual pension or ₹25,000).
Is HRA exemption available in new tax regime?
No, HRA exemption u/s10(13A) is not allowed in new tax regime.
Is there any changes in the new tax regime for FY 2024-25?
Yes. The new tax regime has been revised in the Budget 2024 for FY 24-25.
Can we save tax on the new tax regime?
Budget 2024 has proposed a revision in the Tax Slab for new tax regime for FY 24-25. As a result, taxpayers choosing the new tax regime stand to gain as much as ₹17,500.
What is the income tax slab for AY 2024-25 for salaried person?
The income tax slab for salaried individuals is the same as that applicable to all other assessees.
Is income up to 12 lakhs tax-free for FY 2025-26?
Yes, if your income is up to ₹ 12,00,000 in the FY 2025-26 you will have zero tax liability. For an income upto ₹4,00,000, the income earned is taxed under NIL rate. But, a rebate of ₹60,000 is allowed for an income earned up-to ₹12,00,000 because of which, the tax liability comes to NIL for an income upto ₹12,00,000.
How to calculate the age of a senior citizen for income tax?
To determine if you qualify as a senior citizen or super senior citizen for income tax purposes in India, you need to calculate your age by comparing your date of birth with the current date (April 1, 2025). If you’re 60 or older, you’re a senior citizen, and if you’re 80 or older, you’re a super senior citizen.
What are the tax slabs for Senior citizens above 60 years?
Income Tax Slabs for Individuals Aged 60 to 79 Years under the Old Regime:
- Up to Rs. 3 lakhs: Nil
- Rs. 3 lakhs to Rs. 5 lakhs: 5%
- Rs. 5 lakhs to Rs. 10 lakhs: 20%
- Above Rs. 10 lakhs: 30%
The income tax slabs under the new regime are the same for all taxpayers irrespective of their age.
What is the tax slab for Salaried Individuals under the new regime?
Under the new regime, tax rates for salaried individuals are as follows:
- Up to Rs. 3 lakhs: Nil
- Rs. 3,00,001 to Rs. 7,00,000: 5%
- Rs. 7 lakhs to Rs. 10 lakhs: 10%
- Rs. 10 lakhs to Rs. 12 lakhs: 15%
- Rs. 12 lakhs to Rs. 15 lakhs: 20%
- Above Rs. 15 lakhs: 30%
Note: The standard deduction of Rs. 75,000 is available for salaried individuals.