Income Tax Slabs for FY 2024-25 & AY 2025-26 (New & Old Regime Tax Rates)

By Mohammed S Chokhawala | Updated on: Nov 14th, 2024 | 24 min read

The income tax is a direct tax which follows a progressive slab rate, where the rate of tax increases as the taxpayer's income rises. The Income-tax Act, 1961 provides for two tax regimes: the old regime, which allows various deductions and exemptions, and the new regime, which offers lower tax rates without exemptions.

In this article, we will learn about:

• Income Tax Slabs under the old regime
• Income Tax Slabs under the new regime
• Comparison of Tax slabs under both the regimes
• How to calculate income tax under both tax regimes
• Meaning of Surcharge
• Consequences of not filing ITR within the due date

Income Tax Slabs for New Tax Regime (Revised) – FY 2024-25

The Budget 2024 has revised the tax slabs in the New Regime, providing taxpayers with an extra opportunity to save Rs. 17,500 in taxes. Additionally, the standard deduction has been raised to Rs. 75,000 under this regime and the family pension deduction has been increased to Rs. 25,000 from Rs. 15,000. This is applicable for the FY 2024-25. The following is the tax slabs:

What is an Income Tax Slab?

Old Tax Regime:

In India, the Income Tax applies to individuals based on a slab system, where different tax rates are assigned to different income ranges. As the person's income increases, the tax rates also increase. This type of taxation allows for a fair and progressive tax system in the country. The income tax slabs are revised periodically, typically during each budget. These slab rates vary for different groups of taxpayers.

Let us take a look at all the slab rates applicable for FY 2023-24(AY 2024-25) and FY 2024-25(AY 2025-26).

In India, the Income Tax applies to individuals based on a slab system, where different tax rates are assigned to different income ranges. As the person's income increases, the tax rates also increase. This type of taxation allows for a fair and progressive tax system in the country. The income tax slabs are revised periodically, typically during each budget. These slab rates vary for different groups of taxpayers.

Let us take a look at all the slab rates applicable for FY 2023-24(AY 2024-25) and FY 2024-25(AY 2025-26).