Latest income tax slabs FY 2024-25: What are the new income tax slabs, rates after Budget 2024 announcements? Check full details, FAQs answered

Latest income tax slabs FY 2024-25: Finance Minister Nirmala Sitharaman has changed the income tax slabs effective FY 2024-25 under the new income tax regime as announced in Budget 2024. The standard deduction under the new income tax regime has also been hiked from the present Rs 50,000 to Rs 75,000. According to FM Nirmala Sitharaman, the changes in the new income tax regime will help taxpayers save Rs 17,500/-.

Income Tax Slabs 2024-25 Budget 2024 Live Updates

An important thing to note is that no changes have been introduced under the old income tax regime and the tax slabs and tax rates there remain the same.

Latest Income Tax Slabs 2024-2025 For New Tax Regime

The new income tax slabs under the new tax regime effective FY 2024-25 onwards are:
Under the new income tax regime, also known as the Concessional Tax Regime, for the financial year 2024-25, the eligibility limit for rebate is at Rs 7,00,000. This means that taxpayers can avail a tax rebate of up to Rs 25,000. Additionally, marginal relief will continue to be available to resident individuals whose net taxable income exceeds Rs 7,00,000 and the incremental income tax liability is higher than the incremental income above Rs 7,00,000.

Apart from the taxes calculated according to the slabs mentioned above, a surcharge will be levied on the income-tax of individuals if their total income exceeds Rs 5,000,000.

Income Tax Slabs 2024-2025 For Old/Regular Tax Regime

For the financial year 2024-25, the income tax slabs and rates mentioned below are applicable to individuals who are residents below 60 years of age, non-residents (NR), and not ordinarily residents (NOR). Resident individual taxpayers with a total income not exceeding Rs 500,000 are eligible for a tax rebate of Rs 12,500 or the actual tax payable, whichever is lower.

It is important to note that for resident individuals who are senior citizens above the age of 60, the basic exemption limit is Rs 3 lakh. For super senior citizens aged 80 years and above, the basic exemption limit is Rs 5 lakh.

Lastly, a health and education cess of 4% is levied on the income-tax and surcharge (if applicable) for all individuals, calculated according to the rates mentioned above.

Income Tax Slabs FY 2024-25: FAQs Answered

Did Budget 2024 change income tax slabs?

Yes, Budget 2024 has changed the income tax slabs effective FY 2024-2025 under the new income tax regime. You can check the latest income tax slabs in the table in this article.

What is the current standard deduction for FY 2024-2025?

Budget 2024 has hiked the standard deduction limit from Rs 50,000 to Rs 75,000 under the new income tax regime. It is important to know that the hiked standard deduction limit is only for taxpayers opting for the new income tax regime. This benefit is not extended to taxpayers in the old tax regime.

Is there any change in the income tax slabs FY 2024-25 for the old tax regime?

No, there is no change in the income tax slabs for the old tax regime. Standard deduction hike and tax slab changes have only been introduced in the new income tax regime.

What is the new income tax slab for FY 2024-25?

• li1No tax for income up to Rs 3 lakh
• li15% tax rate for income between Rs 3 lakh to Rs 7 lakh
• li110% tax rate for income between Rs 7 lakh and Rs 10 lakh
• li115% tax rate for income between Rs 10 lakh and Rs 12 lakh
• li120% tax rate for income between Rs 12 lakh and Rs 15 lakh
• li130% tax rate for income above Rs 15 lakh

Also See: Budget 2024 Live Updates


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