The taxable income slabs divide the taxpayers into different categories and assign them different tax rates. These categories depend on the age of the taxpayers, as mentioned below:
These slabs also vary depending on the regime you opt for. By knowing these slabs and the applicable rates, you can plan your finances and taxes accordingly.
Read on to know the tax slabs for income tax under the old and new regimes, tax rates and more.
You can opt for the old regime or the new regime based on your income and investments. As per the Union Budget 2024, the government announced the revised taxable income slabs for the new tax regime. The rates for the old and new tax slab of income tax are as follows.
The traditional system for tax filing allows for various deductions and exemptions. Check out the tax structure and applicable rates under the old tax regime below-
| Income Slabs | Rates for Taxpayers up to 60 Years & NRIs | Rates for Taxpayers over 60 Years and up to 80 Years | Rates for Taxpayers Above 80 Years |
|---|---|---|---|
| Up to ₹2.5 lakhs | Nil | Nil | Nil |
| Between ₹2.5 lakhs and ₹3 lakhs | 5% | Nil | Nil |
| Above ₹3 lakhs and less than ₹5 lakhs | 5% | 5% | Nil |
| Between ₹5 lakhs and ₹10 lakhs | 20% | 20% | 20% |
| ₹10 lakhs and above | 30% | 30% | 30% |
Also Read: Calculation Of Tax
For taxpayers with income exceeding a certain threshold, other tax rates known as surcharges will also apply under the old tax regime. The applicable rates are as follows-
| Range of Income | Surcharge rate |
|---|---|
| Up to ₹50 lakhs | Zero |
| Between ₹50 lakhs and ₹1 crore | 10% |
| Between ₹1 crore and ₹2 crores | 15% |
| Between ₹2 crores and ₹5 crores | 25% |
| Above ₹5 crores | 37% |
The Union Budget 2024-25 proposed a revision of tax rates under the new taxation system. Check out the revised tax structure and slab rates below-
| Income Slabs | Rate for All Taxpayers |
|---|---|
| Up to ₹3 lakhs | Nil |
| Between ₹3 lakhs and ₹7 lakhs | 5% |
| Between ₹7 lakhs and ₹10 lakhs | 10% |
| Between ₹10 lakhs and ₹12 lakhs | 15% |
| Between ₹12 lakhs and ₹15 lakhs | 20% |
| ₹15 lakhs and above | 30% |
The following are the surcharge rates applicable under the New Tax Regime-
| Income Slab | Tax Rates |
|---|---|
| Above ₹50 lakhs and less than ₹1 crore | 10% of the net income |
| Above ₹1 crore and below ₹2 crores | 15% of the net income |
| ₹2 crores and above | 25% of the net income |
The slab of income tax in India also depends on the nature of your income. Here’s how taxpayers can choose between the old and new tax regimes.
| Nature of Income | Regime Applicable |
|---|---|
| Salary Income or Any Other Income Attracting TDS | Employees have the option to choose the regime at the beginning of the financial yearIf they don’t have a preference, the new regime appliesTaxpayers cannot change the regime in the middle of the financial yearThey have the option to shift to the old regime at the beginning of the next financial year |
| Income from Business and Profession | Taxpayers with business or professional income can only choose the regime once |
Knowing these tax slabs and rates helps you choose the right regime and optimise your tax payable to save more. You can invest in tax-saving avenues and make the most of deductions available under various sections in both regimes.
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As per the Union Budget 2024, you are not liable to pay tax under the old tax regime if your net annual income is below ₹2.5 lakhs. It is extended to ₹3 lakhs in case of individuals between 60 – 80 years and to ₹5 lakhs for individuals above 80 years. The basic exemption limit from taxation under the new tax regime is ₹3 lakhs.
Here are the tax slabs and rates for both regimes:
| Old Tax Regime | New Tax Regime | ||
| Tax Slab | Tax Rate | Tax Slab | Tax Rate |
| Up to ₹2.5 lakhs | Nil | Up to ₹3 lakhs | Nil |
| Between ₹2.5 lakhs and ₹3 lakhs | 5% | Between ₹3 lakhs and ₹7 lakhs | 5% |
| Above ₹3 lakhs and less than ₹5 lakhs | 5% | Between ₹7 lakhs and ₹10 lakhs | 10% |
| Between ₹5 lakhs and ₹10 lakhs | 20% | Between ₹10 lakhs and ₹12 lakhs | 15% |
| ₹10 lakhs and above | 30% | Between ₹12 lakhs and ₹15 lakhs | 20% |
| ₹15 lakhs and above | 30% | ||
Yes, all individuals above 18 years with taxable income must file their returns and pay taxes, if applicable.
All individuals can claim standard deductions up to ₹50,000 under the old regime and ₹75,000 under the new tax regime for FY 2024-25.
