Income tax return filing:The time has come to file income tax returns. The last date to file income tax returns is 31st July. But you can file your income tax returns even before that. Most of the people in the country have to pay income tax if they earn more than the prescribed limit during a financial year. How much tax a person has to pay is decided according to his income and the income tax slab applicable to him. With the advent of the new tax regime, this new thing has also been added to it for the last few years. The slab and tax treatment have been kept different in the new and old tax regimes. Tax payers who do not have any business income can choose any one of these two tax regimes every year. Here we are giving every important information related to both these tax regimes, so that if you are thinking of filing your income tax return, then you can do this work easily.
How will the income tax be calculated this time
The calculation of income tax for the financial year 2024-25 is currently being done as per the rules and regulations applicable from last year, because due to the Lok Sabha elections held in 2024, the government presented the interim budget in February 2024. Therefore, no changes were made in the income tax laws in that budget. The full budget for the financial year 2024-25 is likely to be presented after the formation of the new government in July. Therefore, till then the old laws will remain in force. Even though the full budget is yet to be presented, it is important to choose the right tax regime to correctly estimate the tax liability and reduce the tax deduction at source (TDS). And this can happen only when you have the right information about the income tax slab applicable in the current financial year. The table below gives information about the tax slab and income tax rate applicable under the new and old tax regime:
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Income Tax Slabs in the New Tax Regime
Income Tax Slabs |
Income Tax Rate |
0 to Rs 3,00,000 |
0 |
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% |
Rs 15,00,001 and above |
30% |
(4% cess on income tax payable and surcharge applicable on income above Rs 50 lakh)
Also read: Income tax: Before filing income tax return, understand your slab, how much tax will be levied in the new and old tax regime
Income tax slabs in the old tax regime (for people below 60 years of age)
Income Tax Slabs | Income Tax Rate |
0 to Rs 2,50,000 | 0 |
Rs 2,50,001 to Rs 5,00,000 | 5% |
Rs 5,00,001 to Rs 10,00,000 | 20% |
Rs 10,00,001 and above | 30% |
(4% cess on income tax payable and surcharge applicable on income above Rs 50 lakh)
Comparison of Income Tax slabs in new and old regime
If you are still confused, you can choose the right regime for yourself by comparing the tax slabs applicable under the new and old tax regime in the table given below.
Taxable Income | Old Tax Regime | New Tax Regime |
0 to Rs 2,50,000 | Exempted | Exempted |
Rs 2,50,001 to Rs 3,00,000 | 5% | Exempted |
Rs.3,00,001 to Rs.5,00,000 | 5% | 5% |
Rs 5,00,001 to Rs 6,00,000 | 20% | 5% |
Rs 6,00,001 to Rs 9,00,000 | 20% | 10% |
Rs 9,00,001 to Rs 10,00,000 | 20% | 15% |
Rs 10,00,001 to Rs 12,00,000 | 30% | 15% |
Rs 12,00,001 to Rs 15,00,000 | 30% | 20% |
Rs 15,00,001 and above | 30% | 30% |
How much income is exempt from tax under the new and old tax regime?
Under the new tax regime, income up to Rs 3 lakh is exempt from tax for all tax payers, irrespective of their age. ButDue to tax rebate in the new tax regime, people earning up to Rs 7 lakh per annum will not have to pay any tax. If the benefit of standard deduction is added, then this limit becomes Rs 7.5 lakh per annum.Under the Old Tax Regime, the income exempt from tax depends on the age of the individual. For an individual below the age of 60 years, income up to Rs 2.5 lakh is exempt from tax. For senior citizens aged between 60 and 80 years, income up to Rs 3 lakh is exempt from tax. For very senior citizens aged 80 years and above, income up to Rs 5 lakh is exempt from tax.