Income Tax Slab Rate for F.Y. 2023-24 / F.Y. 2024-25
Honorable FM, Smt. Nirmala Sitharaman presented the Union Budget on 1st Feb 2023. The new tax regime has proposed a few changes to income tax slab rates.
Income Tax Slab Rate for FY 2024-25 (AY 2025-26)
Changes in Tax Structure Under the New Regime through the budget 2024 presented on 23rd July 2024 by Honorable FM, Smt. Nirmala Sitharaman.
Income Tax slab rate under the new tax regime applicable for the financial year 2024-25.
Revised Tax Slab under New Tax Regime – Budget 2024
| Income range | Income tax rate |
| Up to Rs. 3,00,000 | Nil |
| Rs. 300,000 – Rs. 7,00,000 | 5% on income which exceeds Rs 3,00,000 |
| Rs. 7,00,000 – Rs. 10,00,000 | Rs 20,000 + 10% on income more than Rs 7,00,000 |
| Rs. 10,00,000 – Rs. 12,00,000 | Rs 50,000 + 15% on income more than Rs 10,00,000 |
| Rs. 12,00,000 – Rs. 1500,000 | Rs 80,000 + 20% on income more than Rs 12,00,000 |
| Above Rs. 15,00,000 | Rs 140,000 + 30% on income more than Rs 15,00,000 |
Income Tax Slab Rate for FY 2023-24 (AY 2024-25)
Tax Slab under New Tax Regime – Budget 2023
| Income range | Income tax rate |
| Up to Rs. 3,00,000 | Nil |
| Rs. 300,000 – Rs. 6,00,000 | 5% on income which exceeds Rs 3,00,000 |
| Rs. 6,00,000 – Rs. 900,000 | Rs 15,000 + 10% on income more than Rs 6,00,000 |
| Rs. 9,00,000 – Rs. 12,00,000 | Rs 45,000 + 15% on income more than Rs 9,00,000 |
| Rs. 12,00,000 – Rs. 1500,000 | Rs 90,000 + 20% on income more than Rs 12,00,000 |
| Above Rs. 15,00,000 | Rs 150,000 + 30% on income more than Rs 15,00,000 |
Income Tax Slabs under New Tax Regime for FY 2021-22 [AY 2022-23]
A new Income tax slab Rate has been proposed under the new tax regime through the Union Budget 2020-21. The Finance Minister of India, Smt. Nirmala Sitharaman presented the Union Budget on 1st Feb 2020.
There is no change in the existing Income Tax Slab rates for Individuals. However, a New Tax Regime has been proposed containing 7 slabs with lower tax rates but without availing various exemptions & deductions.
So, Taxpayers would have two options – either pick the old Tax Slab and pay tax at the existing higher rate or opt for the new tax regime with lower tax rates but without deductions, exemptions, etc.
Thus, under the new tax regime, taxpayers can’t claim or avail of any deductions and exemptions available under different sections of the Act. They have to forego the same to get the advantage of lower tax rates under the new tax regime.
List of exemptions & deductions to be foregone under the new tax regime
The exemptions and deductions that would need to be foregone to opt for the new tax regime option include:
- House Rent Allowance (HRA) U/s 10 (13A)
- Leave Travel Concession (LTA),
- Standard deduction,
- Deductions under Section 80C – Up to Rs.1.5 lakh,
- Deduction on Home Loan interest U/s 24 – Up to Rs. 2 lakh
- Set-off of loss from house property against any other source of income etc.
- Additional deduction on Home Loan interest on affordable houses u/s 80EEA – Up to Rs 1.5 lakh
- Deduction on electric vehicle Auto Loan interest U/s 80EEB – Up to Rs 1.5 lakh
Income Tax Slab Rate for Individuals below 60 years of age under new tax regime
[Applicable for F.Y. 2021-22 (A.Y 2022-23)]
The Income-tax slab rates applicable under the new tax regime would be:
| Slab Rates | Rate of tax |
| Up to INR 2,50,000 | Nil |
| INR 2,50,001 to INR 5,00,000 | 5%* |
| INR 5,00,001 to INR 7,50,000 | 10% |
| INR 7,50,001 to INR 10,00,000 | 15% |
| INR 10,00,001 to INR 12,50,000 | 20% |
| INR 12,50,001 to INR 15,00,000 | 25% |
| Above 15,00,000 | 30% |
* Tax Rebate u/s 87A – Up to Rs 12,500 on taxable income up to Rs 5 lakh is available
Surcharge and Education Cess shall be applicable as per existing rates.
Just to conclude here, the new tax regime is optional. Taxpayers who want to claim available exemptions/ deductions would be taxed as per the existing rates (old tax regime).
Those who want to take the benefits of the lower tax rate under the new tax regime have to forego available exemptions, deductions.
Individuals having taxable income up to INR 5 lakh continue to be exempt from tax liability under the existing and new tax regime.
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