Income Tax Rates for FY 2024-25:
As the financial year 2024-25 (FY 2024-25) has been ended, taxpayers must planning to file their Income Tax Returns (ITR). As we know, the Indian tax system offers two tax regimes, Old Tax Regime and New Tax Regime. This regime comes with different slab rates and deductions.
Understanding the applicable tax rates and choosing the right regime can help you optimize your tax liability. Below is a detailed breakdown of the income tax rates for FY 2024-25 (AY 2025-26) under both regimes.
Old Tax Regime (With Deductions & Exemptions)
Under the Old Tax Regime, tax slabs depends on the age group of the person. The taxpayers can claim various deductions (like Section 80C, 80D, HRA, etc.) and exemptions. The tax rates, surcharges, cess and major deductions are as follows::
- For Individuals Below 60 Years (Including NRIs & HUFs)
| Income Slab | Tax rate |
| Up to Rs. 2,50,000 | Nil |
| 2,50,001 – 5,00,000 | 5% |
| 5,00,001 – 10,00,000 | 20% |
| Above 10,00,000 | 30% |
B. For Senior Citizens (Aged 60-80 Years)
| Income Slab | Tax rate |
| Up to Rs. 3,00,000 | Nil |
| 3,00,001 – 5,00,000 | 5% |
| 5,00,001 – 10,00,000 | 20% |
| Above 10,00,000 | 30% |
C. For Super Senior Citizens (Aged 80+ Years)
| Income Slab | Tax rate |
| Up to Rs. 5,00,000 | Nil |
| 5,00,001 – 10,00,000 | 20% |
| Above 10,00,000 | 30% |
D. Surcharges on the Income
| Income Slab | Surcharge rate |
| Above 50 lacs to upto 1Crore | 10% |
| 1Crore to upto 2 Crore | 15% |
| 2 Crore to 5 Crore | 25% |
| Above 5 Crore | 37% |
E. Health & Education Cess: 4% on (tax + surcharge)
F. Rebate under Section 87A: Tax Rebate upto Rs. 12,500, if income Upto Rs. 5,00,000.
G. Key Deductions Allowed Under Old Regime:
- Section 80C (Rs. 1.5 Lakh): PPF, ELSS, Life Insurance Premium, etc.
- Section 80D (Rs. 25,000 – Rs. 1,00,000): Health Insurance Premium
- Section 80TTA (Rs. 10,000): Interest earned on Savings Accounts
- HRA Exemption: For salaried employees
- Section 24(b): Home Loan Interest (Rs. 2 Lakh)
- LTA (Leave Travel Allowance): Tax exemption on travel expenses
New Tax Regime (Section 115BAC)
The New Tax Regime has lower slab rates but does not allow most deductions (except standard deduction of Rs. 75,000 for salaried employees). It is the default regime, but taxpayers can opt for the Old Regime if they prefer.
- Tax Slabs for Individuals & HUFs (New Regime – FY 2024-25)
| Income Slab | Surcharge rate |
| Up to Rs. 3,00,000 | Nil |
| 3,00,001 – 7,00,000 | 5% |
| 7,00,001 – 10,00,000 | 10% |
| 10,00,001 – 12,00,000 | 15% |
| 12,00,001 – 15,00,000 | 20% |
| Above 15,00,000 | 30% |
B. Surcharges
| Income Slab | Surcharge rate |
| Above 50 lacs to upto 1Crore | 10% |
| 1Crore to upto 2 Crore | 15% |
| 2 Crore to 5 Crore | 25% |
| Above 5 Crore | 37% |
C. Health & Education Cess: 4% on (tax + surcharge)
D. Rebate under Section 87A: Tax rebate upto Rs. 25,000 if taxable income is Upto Rs. 7,00,000
E. Key Features of New Regime:
- No major deductions (except standard deduction of Rs. 75,000 for salaried)
- Simplified tax structure with lower rates
Which Regime Should You Choose
| Factor | Old Regime | New Regime |
| Tax Slabs | Higher rates | Lower rates |
| Deductions | Allowed (80C, HRA, 80D, etc.) | Not allowed (except standard deduction) |
| Best For | Those with high investments & deductions | Those with minimal deductions & lower income |
| Default Option | Must opt manually | Default regime |
| When to choose | If you have high investments (PPF, LIC, Home Loan, etc.)If you claim HRA, LTA, or other exemptionsIf your taxable income after deductions is lower | If you don’t have many deductionsIf your income is below Rs. 7 Lakh (Zero tax liability)If you prefer simpler tax calculations |
Important Deadlines for FY 2024-25 (AY 2025-26)
| Category of Taxpayer | Due Date for FY 2024-25 (unless extended) |
| Individual / HUF/ AOP/ BOI (books of accounts not required to be audited) | 31st July 2025 |
| Businesses (Requiring Audit) | 31st October 2025 |
| Businesses requiring transfer pricing reports (in case of international/specified domestic transactions) | 30th November 2025 |
| Revised return | 31st December 2025 |
| Belated/late return | 31st December 2025 |
| Updated return | 31st March 2030 (4 years from the end of the relevant assessment year) |
Note: To read more about Income tax deadlines in FY 2025, Click Here.
Late fee
In case of late filing, Section 234F imposes a late fee of
- Rs.5,000, if your total income exceeds Rs. 5 Lakh.
- Rs.1,000, if your total income is within Rs.5 lakh
No Income Tax Up to Rs. 12,00,000 : Budget Feb 2025
In the Interim Budget of February 2025, the government proposed increasing the tax-free income limit to Rs. 12,00,000 under the New Tax Regime. However, this change is expected to take effect from FY 2025-26 (AY 2026-27) and not in FY 2024-25 (AY 2025-26). For the current financial year (FY 2024-25), the existing tax slabs remain applicable.
As ITR filing for FY 2024-25 (AY 2025-26) will begin soon, assess your tax liability under both regimes to make an informed decision. If unsure, consult a tax advisor like Taxunplug by dropping your Name, Mobile and Email. Our team of experts will take care of all the sticky things and helps to take timely action, and ensure compliance to avoid legal complications.
Income Tax Rates for FY 2024-25
The information provided in above blog is for general informational only and should not be considered as legal or tax advice. Request you to please follow latest updated in reference to above details. We advise to consult with a qualified tax professional such as “Taxunplug” for all your tax needs.