Income Tax Slabs 2024-25

Income Tax Slabs and Income Tax Rates For FY 2024-25 (AY 2025-2026): Finance Minister Nirmala Sitharaman introduced modifications to the income tax slabs within the new tax income tax regime in the Union Budget 2024. These alterations have taken effect retrospectively from April 1, 2024, for FY 2024-25. The revised new income tax regime was announced in July 2024 following the Lok Sabha elections 2024.
The new tax regime has undergone modifications to enhance its appeal, whilst the old tax regime remains unchanged in terms of income tax slabs, rates and regulations.
The revisions affect only two income tax brackets under the new income tax regime. The adjustments increase the upper limit by Rs 1 lakh in two specific slabs. The modifications transform the Rs 3 lakh-Rs 6 lakh bracket to Rs 3 lakh-Rs 7 lakh, and the Rs 6 lakh-Rs 9 lakh bracket to Rs 7 lakh-Rs 10 lakh. Consequently, individuals earning Rs 7 lakh now face 5% taxation instead of 10%, while those earning Rs 10 lakh are taxed at 10% rather than 15%.
The revised tax structure under the new regime stands as follows: Rs 0 – Rs 3,00,000 – 0%, Rs 3,00,001 and Rs 7,00,000 – 5%, Rs 7,00,001 and Rs 10,00,000-10%, Rs 10,00,001 and Rs 12,00,000 – 15%, Rs 12,00,001 and Rs 15,00,000-20% and Rs 15,00,001 and above – 30%.
Additionally, the Finance Minister has revised the standard deduction limit and employer's NPS contribution regulations under the new income tax regime. The standard deduction for family pensioners has also been adjusted. However, other elements remain constant, including the Section 87A tax rebate and surcharge rates for incomes above Rs 50 lakh.
The new income tax regime maintains its Rs 25,000 tax rebate for taxable incomes up to Rs 7 lakh. The surcharge structure remains unchanged for earnings exceeding Rs 2 crore.
Under the old income tax regime,, the enhanced deductions available in the new regime for standard deduction and employer's contribution are not accessible. A tax rebate of Rs 12,500 continues to be available in the old tax regime for taxable incomes below Rs 5 lakh.
The primary distinction between both the new income tax and the old income tax regimes lies in the standard deductions and tax exemptions. The new tax regime disallows common deductions, including Section 80C deduction (up to Rs 1.5 lakh) for specified investments, Section 80D deduction (up to Rs 25,000/Rs 50,000) for health insurance premiums, and Section 80TTA deduction (up to Rs 10,000) for bank and post office savings account interest.
In the old income regime, tax slabs vary according to age groups. Individuals under 60 years have a basic exemption limit of Rs 2.5 lakh, those between 60-80 years have Rs 3 lakh, and those above 80 years benefit from Rs 5 lakh exemption limit.
The new tax regime, now set as default, requires individuals preferring the old income tax regime to explicitly select it when filing returns. Since its introduction in FY 2020-21, the new income tax regime offers reduced tax rates and permits only two deductions: standard deduction from salary/pension income and Section 80CCD (2) for employer's NPS contributions.
Taxpayers without business income can select between the old and new income tax regimes annually. Those with business income wanting to continue with the old income tax regime must specifically opt for it, with a one-time option to switch to the new regime. However, once the new income tax regime is chosen, reverting to the old income tax regime becomes impossible.

The current FY 2024-25 (AY 2025-26) has witnessed modifications in the income tax slabs under the new tax regime. The adjustments have increased the upper threshold in two brackets by Rs 1 lakh. Specifically, the Rs 3 lakh-Rs 6 lakh bracket has been revised to Rs 3 lakh-Rs 7 lakh, whilst the Rs 6 lakh-Rs 9 lakh bracket has been adjusted to Rs 7 lakh-Rs 10 lakh.
The alterations to the new tax regime were implemented to enhance its appeal compared to the old tax regime.
Below are the latest income tax slabs and income tax rates under the new income tax regime:


The old tax regime's income tax slabs remain unchanged in the July Budget 2024, whilst modifications are made to the new tax regime. For FY 2024-25 (April 1, 2024, to March 31, 2025), taxpayers opting for the old tax regime will be subject to identical tax rates as applicable in FY 2023-24 (April 1, 2023, to March 31, 2024).
The old tax regime's income tax slabs vary according to the individual's age during the financial year, resulting in different basic exemption limits for various age groups.
For individuals under 60 years, the basic exemption limit stands at Rs 2.5 lakh. Senior citizens (60-79 years) enjoy a higher basic exemption limit of Rs 3 lakh, whilst super senior citizens (80 years and above) receive a Rs 5 lakh basic exemption limit. Non-resident individuals, regardless of age, have a basic exemption limit of Rs 2.5 lakh.
The income tax rates under the old tax regime remain consistent across FY 2024-25 (AY 2025-26), FY 2023-24 (AY 2024-25), FY 2022-23 (AY 2023-24) and FY 2021-22 (AY 2022-23).
Below are the latest income tax slabs and income tax rates under the old income tax regime:
Old Income Tax Regime: Income Tax Slabs For Regular Individual

Old Income Tax Regime: Income Tax Slabs For Senior Citizens

Old Income Tax Regime: Income Tax Slabs For Super Senior Citizens