← Back to Blog

"Income Tax Slabs for FY 2024-25: Old vs New Regime Comparison"

2026-05-24

Income Tax Slabs for FY 2024-25: Old vs New Regime Comparison

The income tax slabs for FY 2024-25 (Assessment Year 2025-26) have been updated with a reduced rebate limit for the new regime. Here's a comprehensive comparison.

Old Tax Regime (with deductions)

| Income Slab | Tax Rate | |-------------|----------| | Up to ₹2,50,000 | Nil | | ₹2,50,001 – ₹5,00,000 | 5% | | ₹5,00,001 – ₹10,00,000 | 20% | | Above ₹10,00,000 | 30% |

Rebate under Section 87A

  • Rebate: Up to ₹12,500
  • Eligibility: Income ≤ ₹5,00,000
  • Net tax liability: Nil

New Tax Regime (default – lower rates)

| Income Slab | Tax Rate | |-------------|----------| | Up to ₹3,00,000 | Nil | | ₹3,00,001 – ₹6,00,000 | 5% | | ₹6,00,001 – ₹9,00,000 | 10% | | ₹9,00,001 – ₹12,00,000 | 15% | | ₹12,00,001 – ₹15,00,000 | 20% | | Above ₹15,00,000 | 30% |

Rebate under Section 87A

  • Rebate: Up to ₹25,000
  • Eligibility: Income ≤ ₹7,00,000
  • Net tax liability: Nil (for income up to ₹7,00,000)

Key Deductions (Old Regime Only)

| Section | Maximum Deduction | |---------|-------------------| | 80C | ₹1,50,000 | | 80D | ₹25,000 (self) / ₹50,000 (senior) | | 80CCD(1B) | ₹50,000 | | 80E | No limit | | 80G | 50-100% of donation | | Home Loan Interest | ₹2,00,000 |

Comparison Example

Salary: ₹12,00,000

| Old Regime | New Regime | |------------|------------| | Gross Income: ₹12,00,000 | Gross Income: ₹12,00,000 | | Deductions: ₹1,75,000 | Deductions: Standard deduction only | | Taxable Income: ₹10,25,000 | Taxable Income: ₹11,50,000 | | Tax: ₹1,12,500 | Tax: ₹1,15,000 | | Cess: ₹4,500 | Cess: ₹4,600 | | Total Tax: ₹1,17,000 | Total Tax: ₹1,19,600 |

Old Regime is better by ₹2,600.

Which Regime Should You Choose?

Choose Old Regime if:

  • You have high 80C deductions (PPF, ELSS, LIC)
  • You pay significant health insurance premiums
  • You have a home loan (interest deduction)
  • You make large donations

Choose New Regime if:

  • You have few or no deductions
  • You have a simple salary structure with minimal investments
  • Your income is below ₹7,00,000 (tax rebate makes it tax-free)

Surcharge for High Income (Old Regime)

| Income Level | Surcharge | |--------------|-----------| | ₹50 lakh – ₹1 crore | 10% | | ₹1 crore – ₹2 crore | 15% | | ₹2 crore – ₹5 crore | 25% | | Above ₹5 crore | 37% |