Income above a certain limit in a financial year is taxable, and the amount depends on your income and the applicable tax slab.
Taxpayers can choose between the old tax regime and the new tax regime. Salaried individuals have the flexibility to opt for either regime.
Current Tax Rules and Interim Budget
The rules for calculating income tax for the financial year 2024-25 remain unchanged from the previous year.
In February 2024, due to the upcoming Lok Sabha elections, the government presented an interim budget without any modifications to the income tax laws.
The complete budget for FY 2024-25 is anticipated to be presented in July or August 2024 once the new government is in place. Until then, the existing tax laws will apply.
Income Tax Slab Rates for FY 2024-25 (AY 2025-26)
Here are the income tax slab rates for the old and new regimes for the financial year 2024-25, with the assessment year being 2025-26:
Old Tax Regime:
Up to ₹2,50,000: Zero tax
₹2,50,001 – ₹5,00,000: 5% above ₹2,50,000
₹5,00,001 – ₹10,00,000: ₹12,500 + 20% above ₹5,00,000
Above ₹10,00,000: ₹1,12,500 + 30% above ₹10,00,000
New Tax Regime under Section 115BAC:
Up to ₹3,00,000: Zero tax
₹3,00,001 – ₹6,00,000: 5% above ₹3,00,000
₹6,00,001 – ₹9,00,000: ₹15,000 + 10% above ₹6,00,000
₹9,00,001 – ₹12,00,000: ₹45,000 + 15% above ₹9,00,000
₹12,00,001 – ₹15,00,000: ₹90,000 + 20% above ₹12,00,000
Above ₹15,00,000: ₹1,50,000 + 30% above ₹15,00,000
Taxpayers should review these slabs and consider their options between the old and new tax regimes to optimize their tax liability for the upcoming financial year.
