Income Tax Slabs for FY 2024-25 (New & Old Regime Tax Rates)

Income Tax Slabs under the Old Regime

The old regime allows various deductions and exemptions. The income tax slabs under the old regime are as follows:

– Up to Rs 2,50,000: Nil

– Rs 2,50,001 to Rs 5,00,000: 5%

– Rs 5,00,001 to Rs 7,50,000: 10%

– Rs 7,50,001 to Rs 10,00,000: 15%

– Rs 10,00,001 to Rs 12,50,000: 20%

– Rs 12,50,001 to Rs 15,00,000: 25%

– Above Rs 15,00,000: 30%

Income Tax Slabs under the New Regime

The new regime offers lower tax rates without exemptions. The income tax slabs under the new regime are as follows:

– Up to Rs 3,00,000: Nil

– Rs 3,00,001 to Rs 6,00,000: 5%

– Rs 6,00,001 to Rs 9,00,000: 10%

– Rs 9,00,001 to Rs 12,00,000: 15%

– Rs 12,00,001 to Rs 15,00,000: 20%

– Above Rs 15,00,000: 30%

Comparison of Tax Slabs under Both Regimes

The old regime allows various deductions and exemptions, while the new regime offers lower tax rates without exemptions. The choice of regime depends on individual circumstances.

How to Calculate Income Tax under Both Tax Regimes

To calculate income tax, follow these steps:

1. Determine your taxable income.
2. Choose the tax regime (old or new).
3. Apply the tax rates according to the chosen regime.
4. Calculate the total tax liability.

Meaning of Surcharge

A surcharge is an additional tax levied on the taxpayer. In India, a surcharge is levied on taxpayers with high incomes.

Consequences of Not Filing ITR within the Due Date

Failing to file the Income Tax Return (ITR) within the due date can result in:

1. Penalty: A penalty of up to Rs 10,000 may be levied.
2. Interest: Interest on the tax due may be charged.
3. Loss of Refund: If you’re eligible for a refund, you may lose it if you don’t file your ITR on time.
4. Impact on Loan and Credit Applications: Delayed or non-filing of ITR can impact your loan and credit applications.