Income Tax Slabs for FY 2024-25:
1. New Tax Regime:
- No Change in Slabs: The income tax slabs and rates remain the same as the previous financial year (2023-24).
- Choice Between Old and New Regime: Individuals, especially those without business income, have the option to choose between the old and new tax regimes.
- Tax Benefits for Salaried Individuals:
- Basic exemption limit increased to Rs 3 lakh from Rs 2.5 lakh.
- Zero tax payable for incomes not exceeding Rs 7 lakh due to increased rebate under Section 87A.
- Introduction of standard deduction for salaried, pensioners, and family pensioners.
- New tax regime becomes the default tax regime.
- Reduced surcharge of 25% on incomes above Rs 5 crore.
2. Old Tax Regime:
- No Changes in Slabs: The income tax slabs remain unchanged for individuals of different age groups (below 60, 60-80, and above 80).
- Tax Exemptions and Deductions: Individuals can avail various tax exemptions and deductions under the old tax regime, including Section 80C, 80D, 80TTA, HRA, and LTA exemptions.
- Tax Rebate under Section 87A: Tax rebate under Section 87A is available for taxable incomes up to Rs 5 lakh.
Other Important Points:
- Cess and Surcharges: Cess is levied at 4% on the income tax amount, and surcharges are applicable on incomes above Rs 50 lakh.
- Interim Budget 2024: The interim budget for FY 2024-25 did not propose any changes to the existing income tax slabs and rates.
- Continued Analysis: Individual taxpayers are advised to continue analyzing the effective tax regime selection between old and new tax regimes based on their financial situation.
This summary provides a comprehensive overview of the income tax slabs, rates, and key points for the financial year 2024-25.
