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In India, we have a progressive method of taxation, which means the more your income is, the more tax you will pay. Income Tax Slabs are the income slabs defined by the tax department. It helps to determine the income tax rate at which you will be taxed in India. Your Income Tax Slab depends on the various factors. This guide will give you a glimpse of the income tax slabs for the current FY and the previous years.
Given below are the tax slabs under the new tax regime as per the Budget 2025.
| Income Range (Rs.) | Tax Rate |
|---|---|
| 0 to 4 lakhs | Nil |
| 4 to 8 lakhs | 5% |
| 8 to 12 lakhs | 10% |
| 12 to 16 lakhs | 15% |
| 16 to 20 lakhs | 20% |
| 20 to 24 lakhs | 25% |
| Above 24 lakhs | 30% |
Note: The tax slabs under the old regime are the same as the previous year, i.e., FY 2024-25. This means there has been no change in the existing old regime tax slabs.
The tax slabs under the old regime were not changed in the 2024 budget. The tax slabs under the old regime are as follows:
Individuals aged below 60 years & HUF
| Income Slabs | Tax rate |
|---|---|
| Up to Rs 2,50,000 | NIL |
| Rs 2,50,001 - Rs 5,00,000 | 5% |
| Rs 5,00,001 to Rs 10,00,000 | 20% |
| Rs 10,00,001 and above | 30% |
Individuals aged below 60 years to 80 years
| Income Slabs | Tax Rate |
|---|---|
| Up to Rs 3,00,000 | NIL |
| Rs 3,00,001 - Rs 5,00,000 | 5% |
| Rs 5,00,001 to Rs 10,00,000 | 20% |
| Rs 10,00,001 and above | 30% |
Individuals aged above 80 years
| Income Slabs | Tax Rate |
|---|---|
| Up to Rs 5,00,000 | NIL |
| Rs 5,00,001 to Rs 10,00,000 | 20% |
| Rs 10,00,001 and above | 30% |
| Income Tax Slabs for FY 2023-24 | Income Tax Slabs for FY 2024-25 | Tax Rates (FY 2024-25) |
|---|---|---|
| Up to Rs 3,00,000 | Up to Rs 3,00,000 | NIL |
| Rs 3,00,000 - Rs 6,00,000 | Rs 3,00,000 - Rs 7,00,000 | 5% |
| Rs 6,00,000 - Rs 9,00,000 | Rs 7,00,000 - Rs 10,00,000 | 10% |
| Rs 9,00,000 - Rs 12,00,000 | Rs 10,00,000 - Rs 12,00,000 | 15% |
| Rs 12,00,000 - Rs 15,00,000 | Rs 12,00,000 - Rs 15,00,000 | 20% |
| Above Rs 15,00,000 | Above Rs 15,00,000 | 30% |
The Union Budget 2023 made some changes in the Tax Slab Rates for FY 2023-24 under the new tax regime. The basic exemption limit has been raised to Rs 3 lakh from Rs 2.5 lakh to make the new tax regime more attractive. The tax slab rates under the old tax regime will remain the same. Also, the highest tax rate of 30% will be levied above Rs 15 lakh income. If you are looking to maximize your tax deductions and get a hassle-free ITR filing experience, connect with our tax experts. The income tax slab rates for FY 2023-24 (AY 2024-25) under the new tax regime are as follows:
| Income Range | Tax applicable |
|---|---|
| Upto Rs 3,00,000 | 0% |
| Rs. 3,00,001-6,00,000 | 5% |
| Rs. 6,00,001-9,00,000 | 10% |
| Rs. 9,00,001-12,00,000 | 15% |
| Rs. 12,00,001-15,00,000 | 20% |
| Above Rs. 15,00,001 | 30% |
| Income of the assessee | Rate of Tax under Old Tax Regime for FY 22-23, 21-22 and 20-21 (i.e, AY 23-24, 22-23 & 21-22) | New Tax Regime Slab Rates for FY 22-23, 21-22 and 20-21 (i.e, AY 23-24, 22-23 & 21-22) | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Individuals with age less than 60 years or HUF | Individuals with age 60years or more but less than 80 years | Individuals with age 80 years or more | Applicable for All Individuals or HUF | |||||||||
| Rs 0.0 to Rs 2,50,000 | NIL | NIL | NIL | NIL | ||||||||
| Rs 2,50,001 to Rs 3,00,000 | 5% (tax rebate u/s 87a is available) | NIL | NIL | 5% (tax rebate u/s 87a is available) | ||||||||
| Rs. 3,00,001 to Rs 5,00,000 | 5% (tax rebate u/s 87a is available) | NIL | ||||||||||
| Rs. 5,00,001 to Rs 7,50,000 | 20% | 20% | 20% | 10% | ||||||||
| Rs 7,50,001 to Rs 10,00,000 | 20% | 20% | 20% | 15% | ||||||||
| Rs 10,00,001 to Rs. 12,50,000 | 30% | 30% | 30% | 20% | ||||||||
| Rs. 12,50,001 to Rs. 15,00,000 | 30% | 30% | 30% | 25% | ||||||||
| Exceeding Rs. 15,00,001 | 30% | 30% | 30% | 30% | ||||||||
|
Note: 1. In Addition to basic Income Tax, as discussed above, the following are also to be taken care of:- - Surcharge: Surcharge is levied on the amount of income tax at the following rates if the total income of an assessee exceeds specified limits:-
- Rebate u/s 87A 2. Certain income tax exemptions and deductions like sections 80C, 80D,80TTB, HRA, etc are available in the OLD tax regime but will not be available under the new tax regime. |
||||||||||||
| Income of the assessee | Rate of Tax under Old tax Regime for FY 22-23, 21-22 and 20-21 (i.e, AY 23-24, 22-23 & 21-22) | New Tax Regime Slab Rates for FY 22-23, 21-22 and 20-21 (i.e, AY 23-24, 22-23 & 21-22) | ||
|---|---|---|---|---|
| Upto Rs 2,50,000 | NIL | NIL | ||
| Rs 2,50,001 to Rs 5,00,000 | 5% | 5% | ||
| Rs. 5,00,001 to Rs 7,50,000 | 20% | 10% | ||
| Rs 7,50,001 to Rs 10,00,000 | 20% | 15% | ||
| Rs 10,00,001 to Rs. 12,50,000 | 30% | 20% | ||
| Rs. 12,50,001 to Rs. 15,00,000 | 30% | 25% | ||
| Above Rs. 15,00,001 | 30% | 30% | ||
| Note: Surcharge & Health and Education cess are also applicable here as in the case of the resident. |
||||
| Income of the assessee | Rate of Tax under OLD Tax Regime for FY 22-23, 21-22 and 20-21 (i.e, AY 23-24, 22-23 & 21-22) |
|---|---|
| Rs 0.0 to Rs 2,50,000 | NIL |
| Rs 2,50,001 to Rs 5,00,000 | 5% |
| Rs. 5,00,001 to Rs 10,00,000 | 20% |
| Above 10,00,001 | 30% |
| Domestic Company | NORMAL TAX RATE | |
|---|---|---|
| Assessment Year 2023-24 | Assessment Year 2022-23 | |
| Where its total turnover or gross receipt during the previous year does not exceed Rs. 400 crore | 25% | 25% |
| Where its total turnover or gross receipt during the previous year does not exceed Rs. 400 crore | 25% | 25% |
| Any other domestic company | 30% | 30% |
Also, the Government introduced special tax rates for domestic companies under various sections, these can be summarized as:-
| Domestic Company | SPECIAL TAX RATES | |||||
|---|---|---|---|---|---|---|
| Assessment Year 2023-24 | Assessment Year 2022-23 | |||||
| Where it opted for section 115BA | 25% | 25% | ||||
| Where it opted for Section 115BAA | 22% | 22% | ||||
| Where it opted for Section 115BAB | 15% | 15% | ||||
|
Note: 1. In Addition to basic Income Tax, as discussed above, the following are also to be taken care of:- Surcharge: Surcharge is levied on the amount of income tax at the following rates if the total income of an assessee exceeds specified limits:-
2. MAT Provisions as per section 115JB would also be applicable while calculating tax payable. |
||||||
| Nature of Income | Tax Rate | ||||
| Royalty received from Government or an Indian concern in pursuance of an agreement made with the Indian concern after March 31, 1961, but before April 1, 1976, or fees for rendering technical services in pursuance of an agreement made after February 29, 1964, but before April 1, 1976, and where such agreement has, in either case, been approved by the Central Government | 50% | ||||
| Any other income | 40% | ||||
|
Note: 1. In Addition to basic Income Tax, as discussed above, the following are also to be taken care of:- Surcharge: Surcharge is levied on the amount of income tax at the following rates if the total income of an assessee exceeds specified limits:-
2. MAT Provisions as per section 115JB would also be applicable while calculating tax payable. |
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The new tax regime does not permit most deductions and exemptions available under the old tax regime. For instance, deductions under Section 80C cannot be claimed if the taxpayer opts for the new tax regime.
Taxes are collected by the government through three main means:
Section 87A of the Income Tax Act, 1961, provides a tax rebate for individuals earning below a specified income limit. Introduced through the Finance Act of 2013, this section allows individuals residing in India with total taxable income up to ₹5,00,000 to claim a full income tax rebate under the old tax regime. Under the new tax regime, the income limit for the rebate is ₹7,00,000. This rebate is applicable only to individuals, not to companies or other entities, and is calculated before adding the 4% health and education cess.
The Income-tax law defines two key terms: Previous Year and Assessment Year, both of which are crucial for determining a taxpayer's income and the tax payable.
Under the Income Tax law, a basic exemption limit is prescribed for individuals, below which taxpayers are not required to pay taxes. The limit varies for different categories of taxpayers under the old tax regime:
Under the new tax regime, the basic exemption limit for all individuals is ₹3 lakh, regardless of their age.
