We have two types of income tax slabs based on which tax rates are decided. They are referred to as; old tax regime and new tax regime.
In Old tax regime we have following three categories defined based on the age of the taxpayer;
- Below 60 years,
- Aged between 60 and 80 years,
- Above 80 years.
Under the new tax regime we do not have any age wise categorisation. Slab rates defined under the new tax regime are applicable to everyone irrespective of taxpayer’s age.
In the 2024 budget, our honorable finance minister Ms. Nirmala Sitharaman has given further benefits to the new tax regime. In addition to tax rate benefits, she has also announced to provide higher standard deduction of Rs 75,000 to salaried individuals.
For family pensioners, the deduction limit was raised to 25,000 rupees.
Income tax slabs and tax rates under new tax regime for FY 2024-25 (AY 2025-26)
Amount in Indian Rupees
| Income tax slabs for FY 2024-25 (AY 2025-26) | Tax rates for FY 2024-25 (AY 2025-26) |
| 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% |
Income tax slab and tax rates under the old tax regime for FY 2024-25 (AY 2025-26)
Amount in Indian Rupees
| Income tax slabs | Individuals below 60 years of age | Individual with 60 to 80 years of age (Senior Citizen) | Individual’s age is above 80 years (Super Senior Citizen) |
| Up to 2,50,000 | Nil | Nil | Nil |
| 2,50,001 to 3,00,000 | 5% | Nil | Nil |
| 3,00,001 to 5,00,000 | 5% | 5% | Nil |
| 5,00,001 to 10,00,000 | 20% | 20% | 20% |
| Above 10,00,000 | 30% | 30% | 30% |
Tax rebate under section 87A for the financial year 2024-25 (AY 2025-26)
Under section 87A a resident individual can get up to 25,000 rupees as tax rebate if the income does not exceed Rs 7,00,000.
Which means, no tax is payable due to rebate of up to 25,000 rupees
If you have opted for the old tax regime, tax rebate under section 87A will be 12,500 rupees only when annual income does not exceed 5,00,000 rupees for the financial year.
Health and Education Cess for FY 2024-25 (AY 2025-26)
For the financial year 2024-25 (Assessment Year 2025-26), the Health and Education Cess in India is 4%.
Health and education cess is calculated on the aggregate of income tax and any applicable surcharge. If surcharge is not applicable, then it will be calculated only on income tax liability.
Which means, if your tax liability is 100 rupees, then health and education cess at the rate of 4% on 100 rupees will have to be paid i.e. 4 rupees.
Surcharge for the financial year 2024-25 (AY 2025-26)
In India, a surcharge is an additional tax levied on the income tax payable by individuals, and it varies based on the income levels.
For the financial year 2024-25 (Assessment Year 2025-26), the surcharge rates for individuals are as follows:
- Income up to ₹50 lakh: No surcharge.
- Income between ₹50 lakh and ₹1 crore: 10% of the income tax payable.
- Income between ₹1 crore and ₹2 crore: 15% of the income tax payable.
- Income between ₹2 crore and ₹5 crore: 25% of the income tax payable.
- Income exceeding ₹5 crore: 37% of the income tax payable.
These rates apply to the total income after allowing for deductions and exemptions.
The surcharge is calculated on the income tax before adding the Health and Education Cess, which is an additional 4% of the total tax (including the surcharge).
Frequently Asked Questions (FAQs)
Basic exemption limit in income tax
In India, the basic exemption limit for individual taxpayers varies based on age and the tax regime chosen.
Here are the basic exemption limit if you have opted to pay taxes under the old tax regime for the financial year 2024-25 (assessment year 2025-26):
- For individuals below 60 years the basic exemption limit is 2.5 lakhs rupees.
- For senior citizens (60 years and above but below 80 years) the basic exemption limit is 3 lakhs rupees.
- For super senior citizens (80 years and above) basic exemption limit is 5 lakhs rupees.
Under the new tax regime for the financial year 2024-25, the basic exemption limit is 3 lakhs rupees for all individual taxpayers, regardless of age
Previous year vs. Assessment year: what is the difference?
In India, the terms “previous year” and “assessment year” are key concepts in income tax.
Previous Year is the financial year in which the income is earned. For example, for the financial year 2024-25 (April 1, 2024, to March 31, 2025), the income earned during this period is considered the previous year for tax purposes.
Assessment Year is the year following the previous year, during which the income earned in the previous year is assessed and taxed. For example, the assessment year for the previous year 2024-25 is 2025-26.
The previous year is when the income is earned, while the assessment year is when the income is evaluated and taxed.
When an Individual should file an Income Tax Return (ITR)?
An Individual having annual income of more than the basic exemption limit of 2,50,000 INR should file his or her income tax return (ITR) with the Government.
As the basic exemption limit for a senior citizen (above 60 years of age but below 80 years of age) is 3,00,000 INR, they need not file their income tax return if income is less than 3,00,000 rupees.
For a super senior citizen (above 80 years of age), the basic exemption limit is 5,00,000 INR, they need not file ITR if their income is not exceeding 5,00,000 rupees.
This age wise basic exemption limit is applicable if you have opted to pay taxes based on old tax regime tax rates.
If you have opted for a new tax regime, then the basic exemption limit will be 3,00,000 INR irrespective of your age.
My employer has deducted tax (TDS) from my salary. Now the tax liability is Zero. Am I required to file my Income tax return for this year?
You will be required to file your income tax return if your annual income exceeds the basic exemption limit. Your employer has deducted tax from your salary means you are liable to tax and your income exceeds the basic exemption limit.
Deduction of tax by your employer from salary does not replace the requirement of filing income tax return with the government. You should file your income tax return (ITR) on or before the due date of filing, declaring all your incomes, tax deducted, deduction claimed and other details.
How do I check tax deducted details?
When tax is deducted out of your salary, bank interest or other income, it has to be deposited by the person who has deducted it with the government. You can see details of tax deducted in form 26AS and AIS. You can get these forms on the income tax e-filing portal.
How to claim an Income tax refund?
You can claim a refund if excess tax has been deducted from your income. To claim refund, you have to file your income tax return with the government stating all income, deduction, and other details.
Refunds will not be issued if income tax return is not filed for the financial year.
What is the Due date for filing Income tax return?
In India, the due date for filing income tax returns typically depends on the type of taxpayer and their source of income.
Due date for filing income tax return for the financial year 2024-25 (AY 2025-26) is 31st July 2025.
If the government has decided to extend the due date of filing, then such extended due date will be considered as due date instead of 31st July 2025.
If as an individual, you have business income and your accounts are required to be audited under section 44AB, then the due date of filing income tax return for the financial year 2024-25 (AY 2025-26) is 31st October 2025.
For taxpayers who are required to furnish a report under section 92E (transfer pricing), the due date is typically November 30 of the assessment year. For the financial year 2024-25, this would be November 30, 2025.
These due dates can sometimes be extended by the government, so it’s always a good idea to check for any announcements or updates from the Income Tax Department.
When is the last date for filing income tax return?
Last date for filing an income tax return means the date after which you will not be allowed to file your income tax return.
If you missed the due date of filing income tax return, then you can still file your belated income tax return on or before 31st December of the relevant assessment year by paying late filing fee.
Late filing fee will be calculated based on your annual income.
For the financial year 2024-25 (AY 2025-26), the last date of filing will be 31st December 2025. After 31st December 2025, the system will not allow you to file your income tax return (ITR) voluntarily unless the date has been extended.
How much do I need to pay if I miss the deadline of filing ITR?
In India, if you miss the due date for filing your income tax return, you may be subject to a late filing fee under Section 234F of the Income Tax Act.
Here’s a general overview of the such penalties under section 234F.
If the income tax return is filed after the due date of filing but before 31st December of the relevant assessment year, the late fee is 5,000 rupees.
If the return is filed after 31st December but before 31st March of the assessment year, the late fee increases to 10,000 rupees.
If the total income of the taxpayer is less than 5 lakh rupees, the maximum late fee is capped at 1,000 rupees, regardless of when the return is filed.
Late fees are to be paid in addition to interest or penalties that might be applicable under other sections of the Income Tax Act.
It’s always a good idea to file your income tax return as soon as possible to minimize these late fees and avoid any further complications.
Income tax vs. goods and services tax (GST): What is the difference
Income Tax and Goods and Services Tax (GST) are two distinct forms of taxation in India.
Income Tax is a direct imposed on the income earned by individuals, companies, and other entities.
Goods and services tax (GST) is an indirect tax levied on the supply of goods and services, applicable at various stages of the supply chain.
