The Income Slab Rates 2024-25 can help you understanding not only you tax liability but can also help you in saving taxes.
Income Tax Slab Rates 2024-25 Significance
Right from the starting of the new Financial Year 2024-25 that has began from 1st April, 2024 it is important for the taxpayers to know about the income tax rates as well as income tax slabs applicable to them – both under the old tax regime and new tax regime. Further, it is also important to note that from the FY 2023-24, the new tax regime has become the default tax regime. This means that if you do not inform your employer about the selection of your tax regime, then he will calculate your tax liability on the basis of the new tax regime.
Income Tax Slab Rates 2024-25 Under The Old Tax Regime (<60 Years)
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Note:
Under the old tax regime, if the person has a total taxable income of upto Rs. 5 lacs, then he is eligible to claim a rebate of Rs. 12,500 or upto the amount of tax actually payable, whichever is lower.
Also Read: Tax Rebate under the Old & New Tax Regime
Slab Rates 2024-25 Under The Old Tax Regime (60 – 80 Years)
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From the above table, we can conclude that the basic exemption limit for individuals having age 60-80 years is Rs. 3 lacs.
Slab Rates 2024-25 Under The Old Tax Regime (80 Years & above)
[wpdatatable id=316]From the above table, we can conclude that the basic exemption limit for individuals having age above 80 years is Rs. 5 lacs.
Income Tax Slab Rates 2024-25 Under The New Tax Regime
New Tax Regime is also known as Concessional Tax Regime. This is because, under the new tax regime, the income tax slab rates are lower than the old tax regime. However, under this regime the individuals have to forego majority of the allowances, exemptions and deductions. In addition to this, the new tax regime does not differentiate in income tax slab rates on the basis of the age of the individuals.
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Note:
Under the new tax regime, there is an increase of rebate limit from Rs. 5 lacs to Rs. 7 lacs. In other words, if the individual has a taxable income of up to Rs. 7 lacs, then he can claim a rebate of Rs. 25,000 or the actual tax payable, whichever is lower.
Comparison of Income Tax Slab Rates under the Old & New Tax Regime
Surcharge limits for the FY 2024-25
The individuals have to pay a surcharge on their income if their total tax liability exceeds Rs. 50,00,000. Under the old tax regime, the maximum surcharge rate is 37% whereas, under the new tax regime, the maximum limit is 25%.
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Cess applicable in FY 2024-25
Health and Education Cess @4% is applicable on the income tax under the old tax regime and new tax regime for the FY 2024-25.
Standard Deductions for FY 2024-25
Just like the previous FY, for the FY 2024-25 also, the standard deduction of Rs. 50,000 is available under both the tax regimes.
FAQs
As a salaried individual, you have the flexibility to switch between the tax regimes every year till the filing of the Income Tax Return. However, if you have income from business, then you’ve only once in a lifetime option to switch between the old and new tax regime.
Disclaimer:
No changes have been made in the income tax slab rates for the FY 2024-25 in the Interim Union Budget, 2024. However, changes can be made in the full-year Union Budget 2024 after the Lok Sabha elections in July, 2024.