What is the New Income Tax Slab for 2024-25?
The Government of India has revised the income tax slabs for the financial year 2024-25, impacting taxpayers under both the new and old tax regimes. These changes are designed to provide relief to middle-class taxpayers and simplify tax compliance.
New Tax Regime (2024-25):
- Income up to ₹3,00,000 – No tax
- ₹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%
Old Tax Regime (2024-25): The old regime continues to allow deductions such as HRA, 80C, 80D, etc. Taxpayers can choose between the two regimes based on their financial planning.
Frequently Asked Questions (FAQs)
1. What are the new tax slabs for 2024-25? The revised slabs start at ₹3 lakh with incremental rates up to 30%.
2. Can I still use the old tax regime? Yes, you can opt for the old tax regime with deductions.
3. Is the new regime mandatory? No, taxpayers can choose between the old and new regimes.
4. What is the rebate limit under the new regime? A rebate under Section 87A applies for income up to ₹7 lakh.
5. How does HRA work under the new regime? HRA exemptions are only available under the old regime.
6. Are standard deductions applicable? Yes, ₹50,000 standard deduction is available under both regimes.
7. What is the tax for ₹10 lakh income? Under the new regime, it falls in the 10-15% bracket.
8. Can I switch regimes every year? Salaried individuals can switch annually.
9. What happens if I earn ₹15 lakh? The tax rate will be 20% under the new regime.
10. Do I need to file ITR if my income is below ₹3 lakh? No, filing is optional for such income levels.
11. Is there any extra surcharge? A surcharge applies for incomes above ₹50 lakh.
12. Do senior citizens have exemptions? Yes, tax-free limit for them is ₹3.5 lakh.
13. Will tax rates change again? Rates depend on government policy changes.
14. How can I save tax? Use exemptions and deductions under the old regime.
15. Where can I check tax details? Visit the official Income Tax Department website for updates.