Income Tax Slabs FY 2024-25
Complete breakdown of income tax slabs for FY 2024-25 under both new and old tax regimes with practical examples and tax-saving strategies.
New Tax Regime (Default)
Lower tax rates, limited deductions
Old Tax Regime (Optional)
Higher rates, more deductions available
New Tax Regime - Income Tax Slabs
| Income Range | Tax Rate | Tax Amount |
|---|---|---|
| ₹0 - ₹3,00,000 | 0% | Nil |
| ₹3,00,001 - ₹7,00,000 | 5% | Up to ₹19,999.95 |
| ₹7,00,001 - ₹10,00,000 | 10% | Up to ₹29,999.9 |
| ₹10,00,001 - ₹12,00,000 | 15% | Up to ₹29,999.85 |
| ₹12,00,001 - ₹15,00,000 | 20% | Up to ₹59,999.8 |
| ₹15,00,001 - Above | 30% | As applicable |
* Plus 4% Health and Education Cess on total tax • Standard deduction of ₹50,000 applicable
Tax Calculation Example
Annual Income: ₹10,00,000 (Salaried)
New Tax Regime
Old Tax Regime
* Includes 4% Health and Education Cess
💡 In this case, the New Tax Regime saves ₹28,600 in taxes!
Key Deductions & Exemptions
Section 80C (₹1.5L Limit)
- • EPF/PPF contributions
- • Life insurance premiums
- • ELSS mutual funds
- • Home loan principal
- • Tuition fees (children)
- • NSC, Tax-saving FDs
Other Key Sections
- • 80D: Health insurance (₹25K/50K)
- • 24(b): Home loan interest (₹2L)
- • 80E: Education loan interest
- • HRA: House rent allowance
- • LTA: Leave travel allowance
- • 80G: Charitable donations
HRA Exemption Calculation
HRA exemption is the minimum of:
- Actual HRA received
- 50% of salary (metro cities) / 40% of salary (non-metro)
- Actual rent paid - 10% of salary
Metro Cities: Mumbai, Delhi, Chennai, Kolkata as per current tax rules
Frequently Asked Questions
Which tax regime is better - new or old?
It depends on your income and deductions. The new regime has lower tax rates but fewer deductions. If your deductions under 80C, 80D, HRA, etc. are substantial, the old regime might be better. Use our income tax calculator to compare both regimes.
Can I switch between tax regimes every year?
Yes, salaried individuals can choose between new and old regime every year. However, if you have business income, once you opt for the new regime, you cannot switch back to the old regime.
What is the standard deduction in FY 2024-25?
The standard deduction for salaried individuals is ₹50,000 in both new and old tax regimes. This is automatically applied to reduce your taxable income.
Are there any cess or surcharges on income tax?
Yes, there's a 4% Health and Education Cess on the total tax amount. Additionally, surcharge applies: 10% for income ₹50 lakhs-₹1 crore, 15% for income ₹1-2 crores, 25% for income ₹2-5 crores, and 37% for income above ₹5 crores.
What happens if I don't file ITR even with zero tax liability?
If your income exceeds ₹2.5 lakhs, you must file ITR even with zero tax liability. For incomes above ₹50 lakhs, filing ITR is mandatory regardless of tax liability. Non-filing can lead to penalties and restrictions on high-value transactions.
Calculate Your Tax Liability
Use our comprehensive income tax calculator to compare both tax regimes and find the best option for your income level and deductions.