Income tax slabs are the categories of income levels that determine the rate at which income tax is charged for the applicable financial year (FY) and assessment year (AY). Each slab has a specific tax rate applied to the income that falls within its range.
Budget Update 2024-25
- Standard Deduction for salaried employees increased from Rs 50,000 to Rs 75,000.
- Family pension deduction increased from Rs 15,000 to Rs 25,000.
- Tax Rate on Short-Term Gains on certain financial assets will be 20% tax rate.
- Other financial and all non-financial assets will continue with the existing tax rate.
- Tax Rate on Long-Term Gains for all financial and non-financial assets is 12.5% tax rate.
- Capital gains exemption limit on certain financial assets increased to Rs 1.25 lakh per year.
Income Tax Slabs under New Tax Regime u/s 115BAC
Tax rates for Individual (resident or non-resident) less than 60 years of age, senior citizens (60-80 years), and super senior citizens above 80 years:
| Income Tax Slab | Income Tax Rate |
| Up to 3,00,000 | Nil |
| 3,00,000 to 7,00,000 | 5% of above 3,00,000 |
| 7,00,000 to 10,00,000 | 10% of above 7,00,000 +20,000 |
| 10,00,000 to 12,00,000 | 15% of above 10,00,000 +50,000 |
| 12,00,000 to 15,00,000 | 20% of above 12,00,000 +80,000 |
| More than Rs 15,00,000 | Income exceeding 15,00,000*30% + 1,40,000 |
As a result of these changes, a salaried employee in the new tax regime stands to save up to Rs 17,500/- in income tax.
Note : In new regime Rebate under Section 87A up to Rs.25,000 is applicable for resident individuals if the total income does not exceed Rs 7,00,000 (not applicable for NRIs)
Income Tax Slabs under Old Tax Regime
Individual (resident or non-resident) less than 60 years of age
| Income Tax Slab | Income Tax Rate |
| Up to 2.5 lakh | No tax |
| 2.5 lakh to 5 lakh | 5% above 2.5 lakh |
| 5 lakh to 10 lakh | 20% above 5 lakh + 12500 |
| Above 10 lakh | 30% above 10 lakh + 112500 |
Individual (resident or non-resident), 60 years or more but less than 80 years of age
| Income Tax Slab | Income Tax Rate |
| Up to 3 lakh | No tax |
| 3 lakh to 5 lakh | 5% above 3 lakh |
| 5 lakh to 10 lakh | 20% above 5 lakh + 10000 |
| Above 10 lakh | 30% above 10 lakh + 110000 |
Individual (resident or non-resident) 80 years of age or more
| Income Tax Slab | Income Tax Rate |
| Up to 5 lakh | No tax |
| 5 lakh to 10 lakh | 20% above 5 lakh |
| Above 10 lakh | 30% above 5 lakh + 100000 |
Note : In old regime Rebate under Section 87A up to Rs.12,500 is applicable for resident individuals if the total income does not exceed Rs 5,00,000 (not applicable for NRIs)
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