Budget 2024-25: What are the current income tax slabs?
Bricksnwall Trusted Experts
The income tax slabs differ between the previous and current tax regimes. Additionally, the slab rates in the former tax regime were divided into three divisions.
Indian inhabitants under 60 years old, plus all
non-residents
60–80 years: Resident Senior Citizens
Over 80 years: Resident Super Senior Citizens
Budget 2024 Update: Tax Slabs Under the New Regime
The Budget 2024 changed the tax slabs in the New
Regime, allowing taxpayers to save an additional Rs. 17,500 in taxes.
Furthermore, the standard deduction has been increased to Rs. 75,000 under this
regime, while the family pension deduction has been adjusted to Rs. 25,000 from
Rs. 15,000. This is applicable for the fiscal year 2024-25
The
following is a comparison of the tax slabs after and before the introduction of
the budget
| Tax Slab for FY 2023-24 | Tax Rate | Tax Slab for FY 2024-25 | Tax Rate |
| Upto ₹ 3 lakh | Nil | Upto ₹ 3 lakh | Nil |
| ₹ 3 lakh - ₹ 6 lakh | 5% | ₹ 3 lakh - ₹ 7 lakh | 5% |
| ₹ 6 lakh - ₹ 9 lakh | 10% | ₹ 7 lakh - ₹ 10 lakh | 10 |
| ₹ 9 lakh - ₹ 12 lakh | 15% | ₹ 10 lakh - ₹ 12 lakh | 15% |
| ₹ 12 lakh - ₹ 15 lakh | 20% | ₹ 12 lakh - ₹ 15 lakh | 20% |
| More than 15 lakh | 30% | More than 15 lakh | 30% |
What is an Income Tax Slab?
In India, the Income Tax is levied on people using
a slab system, with different tax rates assigned to different income levels.
Tax rates rise in proportion to an individual's income. This type of taxation
promotes a more equitable and progressive tax structure in the country. Income
tax brackets are updated on a regular basis, usually around budget season. The
slab rates differ for different types of taxpayers.
Let's look at all of the slab rates for FY 2023-24 (AY 2024-25)
For the Old Regime, a tax credit of up to Rs 12,500
is eligible if the total income does not exceed Rs 5,00,000 (not applicable for
NRIs).
NOTE:
The income tax exemption ceiling is Rs 2,50,000 for
individuals, HUFs under 60, and NRIs.
- Senior citizens above the age of 60 but under
the age of 80 are eligible for up to Rs 3,00,000.
- For super elderly individuals over the age of
80, the maximum amount is Rs 5,00,000.
- Surcharges and cess will be applied over and above the tax rates.
However, under the new tax regime, a rebate of up
to Rs.25,000 is allowed if the total income does not exceed Rs. 7,00,000. (Not
applicable to NRIs)
* Tax rebate equal to an amount, tax payable is
when total income exceeds Rs 7,00,000. (Not applicable to NRIs)
NOTE:
Individuals and HUFs opting for the new system can
claim an income tax exemption of up to Rs 3,00,000 each.
In addition to the tax rates, a surcharge and cess will apply.
Comparison of Tax Rates Between New and Old Tax Regimes
| Old Tax Regime (FY 2022-23 and FY 2023-24) | New Tax Regime |
| Income Slabs | Age < 60 years & NRIs | Age of 60 Years to 80 years | Age above 80 Years | FY 2022-23 | FY 2023-24 |
| Up to ₹2,50,000 | NIL | NIL | NIL | NIL | NIL |
| ₹2,50,001 - ₹3,00,000 | 5% | NIL | NIL | 5% | NIL |
| ₹3,00,001 - ₹5,00,000 | 5% | 5% | NIL | 5% | 5% |
| ₹5,00,001 - ₹6,00,000 | 20% | 20% | 20% | 10% | 5% |
| ₹6,00,001 - ₹7,50,000 | 20% | 20% | 20% | 10% | 10% |
| ₹7,50,001 - ₹9,00,000 | 20% | 20% | 20% | 15% | 10% |
| ₹9,00,001 - ₹10,00,000 | 20% | 20% | 20% | 15% | 15% |
| ₹10,00,001 - ₹12,00,000 | 30% | 30% | 30% | 20% | 15% |
| ₹12,00,001 - ₹12,50,000 | 30% | 30% | 30% | 20% | 20% |
Income Tax Slab Rates for FY 2022-23 (AY 2023-24): a. New tax regime until March 31, 2023
| Income Slabs | Individuals (for all age categories) |
| Up to Rs 2,50,000 | Nil |
| Rs 2,50,001 - Rs 5,00,000 | 5% |
| Rs 5,00,001 - Rs 7,50,000 | 10% |
| Rs 7,50,001 - Rs 10,00,000 | 15% |
| Rs 10,00,001 - Rs 12,50,000 | 20% |
| Rs 12,50,001 - Rs 15,00,000 | 25% |
| Rs 15,00,001 and above | 30% |
A tax rebate of up to Rs 12,500 is available if
total income does not exceed Rs 5,00,000 (not applicable to NRIs)..
Refer to the above graphic for the rates applicable for FY 2023-24 (AY 2024-25) for the forthcoming tax filing season.
b. The old tax regime
Income tax slabs for individuals under the age of 60 and HUF
| Income Slabs | Individuals of Age < 60 Years and NRIs |
| 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% |
NOTE:
Individuals, HUFs under the age of 60, and NRIs may
claim an income tax exemption of up to Rs 2,50,000.
Surcharges and cesses will apply.
Income tax slab for individuals aged 60 to 80 years.
| Income Slabs | Individuals of Age 60 Years to 80 Years |
| 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% |
NOTE:
Senior adults aged 60 and above are eligible for an
income tax exemption of up to Rs.
3 lakh.
Surcharges and cess will be applicable.
Income tax slab for those above the age of 80
| Income Slabs | Individuals of Age above 80 Years |
| Up to Rs 5,00,000 | NIL |
| Rs 5,00,001 to Rs 10,00,000 | 20% |
| Rs 10,00,001 and above | 30% |
NOTE:
The income tax exemption limit is Rs 5 lakh for
very old citizens over the age of 80.
Surcharges and cess will be applicable.
Revised Income Tax Slab Rate AY 2024-25 (FY
2023-24)—For New Regime
| Income Slabs | Income Tax Rates FY 2023-24 (AY 2024-25) |
| Up to Rs 3,00,000 | NIL |
| Rs 3,00,000 to Rs 6,00,000 | 5% on income which exceeds Rs 3,00,000 |
| Rs 6,00,000 to Rs 900,000 | Rs. 15,000 + 10% on income more than Rs 6,00,000 |
| Rs 9,00,000 to Rs 12,00,000 | Rs. 45,000 + 15% on income more than Rs 9,00,000 |
| Rs 12,00,000 to Rs 1500,000 | Rs. 90,000 + 20% on income more than Rs
12,00,000 |
| Above Rs 15,00,000 | Rs. 150,000 + 30% on income more than Rs
15,00,000 |
- These modifications included new income tax slabs for Fiscal Year 2024-25 and an increase in the basic deduction. The standard deduction increased from Rs 50,000 to Rs 75,000. Furthermore, the tax slab limit for the 5% tax rate was increased from Rs 5 lakh to Rs 7 lakh.
- Tax Slab for FY 2023-24 Tax Rate Tax Slab for FY 2024-25 Upto ₹ 3 lakh Nil ₹ 3 lakh - ₹ 6 lakh 5% ₹ 3 lakh - ₹ 7 lakh ₹ 6 lakh - ₹ 9 lakh 10% ₹ 7 lakh - ₹ 10 lakh ₹ 9 lakh - ₹ 12 lakh 15% ₹ 10 lakh - ₹ 12 lakh
- Existing tax slabs under new tax regime are: 0 - Rs 3,00,000 - 0%, Rs 3,00,001-Rs 6,00,000-5%, Rs 6,00,001-Rs 9,00,00-10%, Rs 9,00,001- Rs 12,00,000-15%, Rs 12,00,001-Rs 15,00,000- 20% and Rs 15,00,001 and above - 30%
- One notable highlight of the Union Budget 2024-25 is the 50% rise in the standard deduction, now up to ₹75,000. This is a beneficial move for salaried taxpayers, particularly those choosing the new tax regime, as it lowers their taxable income and increases disposable income.
