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

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

Understanding the applicable income tax slabs is the first step in calculating your tax liability. For FY 2024-25, taxpayers can choose between the old regime and the new regime (which is the default). This guide covers the complete tax slab structure for both regimes.

New Tax Regime Slabs – FY 2024-25

The new tax regime under Section 115BAC is the default regime from FY 2023-24 onwards. You need to specifically opt out if you prefer the old regime.

Key features of the new regime:

• Standard deduction of Rs 75,000 for salaried individuals and pensioners
• Rebate under Section 87A for income up to Rs 7 lakh (zero tax payable)
• No deductions under Chapter VI-A (except employer NPS contribution)
• No exemptions for HRA, LTA, or other allowances

Old Tax Regime Slabs – FY 2024-25

For Individuals Below 60 Years and HUFs

For Senior Citizens (60-80 Years)

For Super Senior Citizens (Above 80 Years)

Surcharge Rates

Surcharge is applicable on the income tax amount (not on income) when total income exceeds specified thresholds:

Under the new regime, the maximum surcharge rate is capped at 25% regardless of income level.

Health and Education Cess

A cess of 4% is levied on the total tax amount (including surcharge) under both regimes. This is applicable to all taxpayers without exception.

Tax Calculation Example – New Regime

For a salaried individual with gross income of Rs 10,00,000:

• Gross Income: Rs 10,00,000
• Less: Standard Deduction: Rs 75,000
• Taxable Income: Rs 9,25,000
• Tax: 0 + 20,000 (5% on Rs 4L) + 22,500 (10% on Rs 2.25L) = Rs 42,500
• Cess: Rs 1,700
• Total Tax: Rs 44,200

Tax Calculation Example – Old Regime

For the same individual with Section 80C (Rs 1.5L) and 80D (Rs 25,000) deductions:

• Gross Income: Rs 10,00,000
• Less: Standard Deduction: Rs 50,000
• Less: 80C Deduction: Rs 1,50,000
• Less: 80D Deduction: Rs 25,000
• Taxable Income: Rs 7,75,000
• Tax: 0 + 12,500 (5% on Rs 2.5L) + 55,000 (20% on Rs 2.75L) = Rs 67,500
• Cess: Rs 2,700
• Total Tax: Rs 70,200

In this scenario, the new regime saves Rs 26,000.

Rebate Under Section 87A

Under the new regime, if your taxable income is up to Rs 7 lakh, you are eligible for a rebate equal to the tax payable or Rs 25,000, whichever is lower – effectively making your tax nil. Under the old regime, the rebate applies for taxable income up to Rs 5 lakh with a maximum rebate of Rs 12,500.

Calculate Your Exact Tax with FileWithUs.ai

FileWithUs.ai provides an instant tax calculator that shows your liability under both regimes. Enter your income and deductions to see exactly which regime saves you more money. Our platform handles all the complexities including surcharge, cess, and rebate calculations automatically.