Income Tax Slab Rates for AY 2024 - 25

Understanding Income Tax Slabs for the Assessment Year 2024-25 in India. Income tax is an essential component of the tax structure in India, and it is levied on the income earned by individuals, businesses, and other entities. The Income Tax Act, 1961, is the primary legislation that governs the taxation of income in India. As per this act, income tax is levied based on income tax slabs, which are determined by the income earned by an individual or entity.

For the assessment year 2024-25 in India, the income tax slabs have been announced by the government. These slabs are applicable to individuals, including resident and non-resident individuals, as well as Hindu Undivided Families (HUFs). Understanding these income tax slabs is essential for taxpayers to ensure that they are paying the right amount of tax based on their income level.

The income tax slabs for the assessment year 2024-25 in India are as follows:

1. For individuals and HUFs with income up to Rs. 2.5 lakhs, no tax is applicable.
2. For income between Rs. 2.5 lakhs and Rs. 5 lakhs, the tax rate is 5%.
3. For income between Rs. 5 lakhs and Rs. 7.5 lakhs, the tax rate is 10%.
4. For income between Rs. 7.5 lakhs and Rs. 10 lakhs, the tax rate is 15%.
5. For income between Rs. 10 lakhs and Rs. 12.5 lakhs, the tax rate is 20%.
6. For income between Rs. 12.5 lakhs and Rs. 15 lakhs, the tax rate is 25%.
7. For income above Rs. 15 lakhs, the tax rate is 30%.

It's important to note that these tax rates are not applicable to individuals who are aged 60 years or above, as they have different income tax slabs.

For senior citizens, the income tax slabs for the assessment year 2024-25 in India are as follows:

1. For individuals aged 60 years or above but less than 80 years, no tax is applicable on income up to Rs. 3 lakhs.
2. For income between Rs. 3 lakhs and Rs. 5 lakhs, the tax rate is 5%.
3. For income between Rs. 5 lakhs and Rs. 10 lakhs, the tax rate is 20%.
4. For income above Rs. 10 lakhs, the tax rate is 30%.

For super senior citizens, who are aged 80 years or above, the income tax slabs for the assessment year 2024-25 in India are as follows:

1. For individuals aged 80 years or above, no tax is applicable on income up to Rs. 5 lakhs.
2. For income between Rs. 5 lakhs and Rs. 10 lakhs, the tax rate is 20%.
3. For income above Rs. 10 lakhs, the tax rate is 30%.

It's important to note that these income tax slabs and rates are subject to change based on the government's budget announcements and tax reforms. Taxpayers are advised to stay updated on the latest developments in tax laws and regulations to ensure compliance with the tax laws and minimize their tax liability.

In addition to the income tax slabs, there may be other components of the tax structure that taxpayers need to be aware of, such as deductions and exemptions. These can help reduce the overall tax liability of taxpayers. For instance, taxpayers can claim deductions under Section 80C for investments made in various tax-saving instruments, such as Public Provident Fund (PPF), Equity-Linked Savings Schemes (ELSS), and National Pension System (NPS). Other deductions such as medical expenses, interest on education loans, and donations made to charitable institutions are also available to taxpayers.

Moreover, taxpayers are also required to pay a surcharge in addition to the income tax, depending on their income level. For individuals with income between Rs. 50 lakhs and Rs. 1 crore, a surcharge of 10% is applicable. For individuals with income above Rs. 1 crore, a surcharge of 15% is applicable.

It's important for taxpayers to accurately calculate their income and determine the applicable income tax slab and surcharge rate to avoid any penalties or fines for non-compliance with tax laws. Taxpayers can also take advantage of tax planning strategies such as investing in tax-saving instruments and taking advantage of available deductions to minimize their tax liability.

In conclusion, the income tax slabs for the assessment year 2024-25 in India have been announced by the government, and taxpayers are required to pay taxes based on their income level. It's important for taxpayers to stay updated on the latest developments in tax laws and regulations to ensure compliance with tax laws and minimize their tax liability. By taking advantage of available deductions and tax-saving instruments, taxpayers can effectively manage their tax liability and maximize their financial savings.

Below is the comparison of new tax regime and old tax regime of Income tax 

NEW REGIME (FOR AY 2024 - 25)

Income Rs.	Proposed Tax Rate
Upto 3,00,000/-	Nil
3,00,000/- to 6,00,000/-	5%
6,00,000/- to 9,00,000/-	10%
9,00,000/- to 12,00,000/-	15%
12,00,000/- to 15,00,000/-	20%
15,00,000/- and above	30%

 

Following tax rates for Old Regime

OLD REGIME

Income Rs.	Proposed Tax Rate
Up-to 2,50,000/-	Nil
2,50,001 TO 5,00,000/-	5%
5,00,001/- to 10,00,000/-	20%
10,00,000/- and above	30%

 TAX RATES FOR SENIOR CITIZENS

Income Rs.	Proposed Tax Rate
Upto 3,00,000/-	Nil
3,00,000/- to 5,00,000/-	5%
5,00,000/- to 10,00,000/-	20%
10,00,000/- and above	30%

 SUPER SENIOR CITIZEN (ABOVE 80 YEARS OF AGE)

Income Rs.	Proposed Tax Rate
Upto 5,00,000/-	Nil
5,00,000/- to 10,00,000/-	20%
10,00,000/- and above	30%

Rebate u/s 87A - BONANZA GIVEN BY THE GOVERNMENT - Now you can avail Rs. 25000/- instead of Rs. 12500/- upto salary Rs. 700000/-

From AY 2024 - 25 onwards, an assessee, being an individual resident in India, shall now be entitled to a rebate of 100 percent of the amount of income tax payable on a total income not exceeding Rs. 7 Lacs.

New Tax Regime is now the default tax regime, although the option for the old tax regime is still open. 

Increase in tax exemption limit to 25,00,000/- on leave encashment on retirement for non - government salaried employees from existing Rs. 3,00,000/-