Understanding Income Tax Slabs for FY 2024-25: New vs Old Regime
Get a detailed breakdown of India’s latest income tax slabs for FY 2024-25 under both the new and old tax regimes. Compare rates, deductions, and find out which regime works better for you.
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Understanding Income Tax Slabs for FY 2024-25: New vs Old Regime
What Are Income Tax Slabs?
India follows a progressive tax system, where the tax payable increases with income. These are defined in “slabs” or ranges of income, with each slab assigned a specific tax rate.
For FY 2024-25 (Assessment Year 2025-26), taxpayers can choose between two regimes:
New Tax Regime (default system)
Old Tax Regime (optional)
Income Tax Slabs Under the New Regime (FY 2024-25)
This regime is the default for all taxpayers unless they explicitly opt for the old regime. It offers lower tax rates but limited deductions/exemptions.
Tax Rates (for Individuals and HUFs)
| Annual Income Range | Tax Rate |
|---|---|
| Up to ₹3,00,000 | Nil |
| ₹3,00,001 to ₹6,00,000 | 5% |
| ₹6,00,001 to ₹9,00,000 | 10% |
| ₹9,00,001 to ₹12,00,000 | 15% |
| ₹12,00,001 to ₹15,00,000 | 20% |
| Above ₹15,00,000 | 30% |
Features of the New Regime:
Standard deduction of ₹50,000 is available
No exemptions under 80C, HRA, LTA, etc.
Section 87A rebate applicable for income up to ₹7,00,000 (tax becomes nil)
Income Tax Slabs Under the Old Regime (FY 2024-25)
The old regime offers multiple deductions but comes with higher tax rates. This regime is suitable for individuals who claim deductions under 80C, 80D, HRA, etc.
Tax Rates (for Individuals below 60 years)
| Annual Income Range | Tax Rate |
|---|---|
| Up to ₹2,50,000 | Nil |
| ₹2,50,001 to ₹5,00,000 | 5% |
| ₹5,00,001 to ₹10,00,000 | 20% |
| Above ₹10,00,000 | 30% |
Deductions Allowed:
Section 80C: ₹1.5 lakh (LIC, PPF, ELSS, etc.)
Section 80D: Health insurance
HRA, LTA, Education Loan Interest, etc.
Section 87A rebate available for income up to ₹5,00,000 (tax becomes nil).
Surcharge and Cess Details (Applicable in Both Regimes)
Surcharge (based on income)
| Income Range | Surcharge Rate |
|---|---|
| ₹50 lakh – ₹1 crore | 10% |
| ₹1 crore – ₹2 crore | 15% |
| ₹2 crore – ₹5 crore | 25% (max 15% in new regime) |
| Above ₹5 crore | 37% (max 15% in new regime) |
Health and Education Cess:
4% on total tax + surcharge
Graph: Comparison of Tax Payable – New vs Old Regime
[Insert Bar Graph: Annual Income vs Tax Payable]
Bar Graph Description:
X-axis: Annual Income (₹6L, ₹9L, ₹12L, ₹15L, ₹18L)
Y-axis: Tax Payable (in ₹)
Two bars for each income level – one for New Regime and one for Old Regime
Shows lower tax up to ₹15L in new regime if no deductions are claimed
Which Tax Regime Should You Choose?
Choose New Regime If:
You don’t have many investments under 80C
You want simple tax filing
Your salary package is non-flexible
Choose Old Regime If:
You claim deductions like 80C, 80D, HRA, LTA
You pay home loan EMIs or life insurance premiums
You optimize your salary structure for exemptions
How Myfinflow Helps You Stay Tax-Ready
At Myfinflow, we help borrowers and salaried individuals stay compliant with their tax planning:
Automatically track taxable income
Suggest regime based on deductions
Download ready-to-use income proof reports
Integrate loan repayment and interest statements for Section 24(b) and 80E claims
