New Income Tax Slabs for FY2024-25
During her Union Budget 2024 speech, Finance Minister Nirmala Sitharaman made small tweaks to the income tax rates under the new regime for individuals and HUF. There were many requests for tweaking the tax rates and deductions for the old regime as well, but there were no changes proposed in Union Budget 2024.
Revision of tax slabs under new tax regime for FY2024-25
Apart from rejigging the tax slabs, the Union Budget 2024 also proposed to increase the standard deduction under the new tax regime for individuals and HUF to ₹75,000 from ₹50,000.
Here is a comparison of the old slabs in the new tax regime and the one announced in the Union Budget 2024.
| Old slabs under new regime (FY2023-24) | Tax rate (FY2023-24) | New slabs under new regime (FY2024-25) | Tax rate (FY2024-25) |
|---|---|---|---|
| Upto ₹ 3 lakh | Nil | Upto ₹3 lakh | Nil |
| ₹3 lakh - ₹6 lakh | 5% | ₹3 lakh - ₹7 lakh | 5% |
| ₹6 lakh - ₹9 lakh | 10% | ₹7 lakh - ₹10 lakh | 10% |
| ₹9 lakh - ₹12 lakh | 15% | ₹10 lakh - ₹12 lakh | 15% |
| ₹12 lakh - ₹ 15 lakh | 20% | ₹12 lakh - ₹ 15 lakh | 20% |
| More than ₹15 lakh | 30% | More than ₹15 lakh | 30% |
Additionally, there is a rebate on income tax that is available under the new regime under section 87A of the Income Tax Act 1961 for taxable income up to ₹7 lakh.
Tax slabs under old tax regime for FY2024-25
For individual and HUF taxpayers, the slab rates under the old tax regime remain the same. Here are the tax rates—
| Slabs under old regime | Individuals (Age < 60 years) | Resident senior citizen (Aged between 60 to 80 years | Resident senior citizen (80 years and above) |
|---|---|---|---|
| Upto ₹2.5 lakh | Nil | Nil | Nil |
| ₹2.5 lakh – ₹3.0 lakh | 5% | Nil | Nil |
| ₹3.0 lakh – ₹5.0 lakh | 5% | 5% | Nil |
| ₹5.0 lakh – ₹10.0 lakh | 20% | 20% | 20% |
| Above ₹10 lakh | 30% | 30% | 30% |
Like the new tax regime, taxpayers also get a rebate under section 87A of the Income Tax Act 1961 for taxable income up to ₹7 lakh.
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