When it comes to income tax in India, taxpayers have the option to choose between the new tax regime and the old tax regime. Let’s take a closer look at the income tax slabs applicable for the assessment year 2024-25 under both regimes.
New Tax Regime
The new tax regime, introduced in 2020, offers lower tax rates but eliminates most deductions and exemptions. Here are the income tax slabs applicable for individuals under the new tax regime:
- Up to Rs. 3 lakh: No tax
- Rs. 3 lakh to Rs. 6 lakh: 5% tax
- Rs. 6 lakh to Rs. 9 lakh: 10% tax
- Rs. 9 lakh to Rs. 12 lakh: 15% tax
- Rs. 12 lakh to Rs. 15 lakh: 20% tax
- Above Rs. 15 lakh: 30% tax
Old Tax Regime
The old tax regime allows taxpayers to claim various deductions and exemptions. Here are the income tax slabs applicable for individuals under the old tax regime:
- Up to Rs. 2.5 lakh: No tax
- Rs. 2.5 lakh to Rs. 5 lakh: 5% tax
- Rs. 5 lakh to Rs. 10 lakh: 20% tax
- Above Rs. 10 lakh: 30% tax
Choosing the Right Regime
Deciding between the new tax regime and the old tax regime depends on various factors, including your income, deductions, and exemptions. It is advisable to consult a tax professional or use online tax calculators to determine which regime suits you best.
Remember, once you choose a particular regime for a financial year, you cannot switch to the other regime for that year. So, make an informed decision based on your financial situation and long-term tax planning goals.
