Income Tax New Regime of Financial Year 2024-25
For the Financial Year (FY) 4-25
(Assessment Year 5-26), the Government of India has revised the income tax
slabs under the new tax regime. The updated tax rates are as follows:
New Tax Regime Slabs:
Income
Range |
Tax Rate |
Up to ₹3,00,000 |
Nil |
₹3,00,001 to ₹7,00,000 |
5% |
₹7,00,001 to ₹10,00,000 |
10% |
₹10,00,001 to ₹12,00,000 |
15% |
₹12,00,001 to ₹15,00,000 |
20% |
Above ₹15,00,000 |
30% |
Additionally, the standard deduction
has been increased from ₹50,000 to ₹75,000. With this enhancement, individuals
with an income of up to ₹7.75 lakh can effectively be exempt from income tax
after accounting for the standard deduction.
The old tax regime remains
unchanged. Taxpayers can choose between the old and new regimes based on which
is more beneficial for their financial situation.
For a detailed comparison between
the old and new tax regimes, including specific income tax slabs and rates, you
can refer to the Income Tax Department's official guidelines.
To assist in calculating your tax
liability under both regimes, you can use online tools such as the Income Tax
Calculator provided by Moneycontrol.
It's advisable to consult with a tax
professional or financial advisor to determine which tax regime best suits your
individual circumstances.
Key Features of the New Tax Regime
1.
No Tax up to ₹7
lakh: Due to a rebate under Section
87A, individuals with taxable income up to ₹7 lakh do not pay any
tax.
2.
Standard
Deduction: ₹50,000 is available for salaried
individuals and pensioners.
3.
Lower Tax Rates: Compared to the old tax regime.
4.
Fewer
Exemptions and Deductions: No benefits
for:
o 80C (LIC, PPF,
ELSS, etc.)
o 80D (Health
Insurance)
o HRA, LTA (House Rent
Allowance, Leave Travel Allowance)
o Home Loan Interest (Section 24b)
Who Should Opt for the New Tax
Regime?
- Salaried individuals with fewer deductions.
- Taxpayers who prefer lower tax rates over exemptions.
- Individuals not heavily investing in tax-saving
schemes.
You can still choose between the Old and New Tax Regime
based on what benefits you more.
Would you like help calculating your tax under both regimes?
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