Income Tax Calculator 2024: Income Tax slabs for FY 2024-25 in India
In the Union Budget 2024, the Finance Minister announced significant changes to the new income tax regime. The revisions include new income tax slabs for the fiscal year 2024-25. The standard deduction, which reduces the taxable income, has been increased from Rs. 50,000 to Rs. 75,000. Additionally, the income threshold for the 5% tax rate has been raised from Rs. 5 lakh to Rs. 7 lakh. This helps more people to benefit from the lower tax rate.
In the 2024 Budget, the standard deduction limit for salaried employees has been increased to Rs. 75,000. For family pensioners, the limit has been raised to Rs. 25,000. This change is anticipated to provide tax relief to 40 million salaried employees and pensioners.
The income tax calculator allows an individual to compare the income tax liability in two financial years. Currently, the income tax calculator shows income tax liability in the current financial year, 2024-25 (ending on March 31, 2025), and the previous financial year, 2023-24 (between April 1, 2023 and March 31, 2024). The income tax calculator also compares the income tax liability in the new tax regime and in the old tax regime for the two financial years.
The new tax regime is the default tax regime. So if an individual does not inform his/her employer of the preferred choice of tax regime, then TDS on salary will be deducted as per income tax slabs applicable under the new tax regime.
However, a taxpayer can choose any tax regime while filing ITR. The option of choosing any tax regime while filing ITR is available if tax return is filed before expiry of ITR filing deadline.
Income tax slabs under old tax regime
The age of the individual will determine the income tax slabs applicable for calculation under the old tax regime. There are no changes in the income tax laws under the old tax regime. Thus, if a taxpayer opts for the old tax regime, the calculation will be done on the rates that were applicable the previous year.
For individuals below 60 years, the basic exemption limit is Rs 2.5 lakh for FY 2023-24 and FY 2024-25.
Income tax slabs for individuals under old tax regime
For senior citizens, aged 60 years and above but below 80 years, the basic exemption limit remains Rs 3 lakh for FY 2023-24 and FY 2024-25.
For super senior citizens, aged 80 years and above, the basic exemption limit remains Rs 5 lakh for FY 2023-24 and FY 2024-25.
Cess will be applicable at 4% on the income tax payable. Further, a surcharge will be applicable on taxable incomes above Rs 50 lakh. Those earning above Rs 5 crore will pay a surcharge of 37% in the old tax regime. A rebate under Section 87A will be available for taxable incomes up to Rs 5 lakh in the old tax regime for FY 2023-24 and FY 2024-25.
The income tax calculator takes into account various tax exemptions and deductions that an individual is eligible for under the old as well as new tax regimes. Some of the tax exemptions and deductions that are available are: standard deduction of Rs 50,000 from salary income, tax exemption on house rent allowance, Section 80C, Section 80D and Section 80TTA.
FAQs:
What is the amount of standard deduction available under the new tax regime?
Standard deduction of Rs 75,000 is available to taxpayers having income from salary and pension income.
Table: Income Tax Slabs Under New Tax Regime for FY 2024–25
In the 2024 Budget, the standard deduction limit for salaried employees has been increased to Rs. 75,000. For family pensioners, the limit has been raised to Rs. 25,000. This change is anticipated to provide tax relief to 40 million salaried employees and pensioners.
The income tax calculator allows an individual to compare the income tax liability in two financial years. Currently, the income tax calculator shows income tax liability in the current financial year, 2024-25 (ending on March 31, 2025), and the previous financial year, 2023-24 (between April 1, 2023 and March 31, 2024). The income tax calculator also compares the income tax liability in the new tax regime and in the old tax regime for the two financial years.
The new tax regime is the default tax regime. So if an individual does not inform his/her employer of the preferred choice of tax regime, then TDS on salary will be deducted as per income tax slabs applicable under the new tax regime.
However, a taxpayer can choose any tax regime while filing ITR. The option of choosing any tax regime while filing ITR is available if tax return is filed before expiry of ITR filing deadline.
Income tax slabs under old tax regime
The age of the individual will determine the income tax slabs applicable for calculation under the old tax regime. There are no changes in the income tax laws under the old tax regime. Thus, if a taxpayer opts for the old tax regime, the calculation will be done on the rates that were applicable the previous year. For individuals below 60 years, the basic exemption limit is Rs 2.5 lakh for FY 2023-24 and FY 2024-25.
Income tax slabs for individuals under old tax regime
For senior citizens, aged 60 years and above but below 80 years, the basic exemption limit remains Rs 3 lakh for FY 2023-24 and FY 2024-25.
Income tax slabs for senior citizens under old tax regime
For super senior citizens, aged 80 years and above, the basic exemption limit remains Rs 5 lakh for FY 2023-24 and FY 2024-25.
Income tax slabs for super senior citizens under old tax regime
Cess will be applicable at 4% on the income tax payable. Further, a surcharge will be applicable on taxable incomes above Rs 50 lakh. Those earning above Rs 5 crore will pay a surcharge of 37% in the old tax regime. A rebate under Section 87A will be available for taxable incomes up to Rs 5 lakh in the old tax regime for FY 2023-24 and FY 2024-25.
The income tax calculator takes into account various tax exemptions and deductions that an individual is eligible for under the old as well as new tax regimes. Some of the tax exemptions and deductions that are available are: standard deduction of Rs 50,000 from salary income, tax exemption on house rent allowance, Section 80C, Section 80D and Section 80TTA.
FAQs: