Tax Slabs FY 24-25 (AY 25-26)

The Government of India provides taxpayer two systems for calculating their income tax—Old Regime and New Regime. Both of these regime are applicable for the Financial year 2024-2025 (Assessment Year 2025–26), which allows taxpayers to choose the one that best suits their financial planning and tax-saving preferences.

The Old Regime is the traditional system which provides multiple exemptions and deductions such as under Section 80C, 80D, HRA, LTA, and home loan interest. Taxpayers who are eligible for the deductions under these sections often prefer this system to reduce taxable income.

Income Tax Slabs under Old Regime (FY 2024–25)

Income slab	Individuals (<60 years)	Senior Citizens (60–<80 years)	Super Senior Citizens (≥80 years)
Up to ₹2,50,000	nil	Nil	Nil
₹2,50,001 – ₹3,00,000	5%	nil	Nil
₹3,00,001 – ₹5,00,000	5%	5%	Nil
₹5,00,001 – ₹10,00,000	20%	20%	20%
Above ₹10,00,000	30%	30%	30%

Additional Points:

Rebate under Section 87A: Available if total income ≤ ₹5,00,000, resulting in zero tax liability.
Health and Education Cess: 4% on income tax plus surcharge

Income Tax Slabs under New Regime (FY 2024–25)

Income Slab (₹)

Tax Rate

Up to ₹3,00,000

Nil

₹3,00,001 – ₹6,00,000

₹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%

Additional Points:

Flat slabs for all individuals, regardless of age (no separate slabs for senior citizens).
Section 87A rebate: If total income ≤ ₹7,00,000, tax payable =zero after rebate
Standard deduction of ₹50,000 is available.
Health and Education Cess: 4% on tax + surcharge
Most exemptions/deductions (like HRA, 80C, 80D, etc.) are not available.

Which Slab is Suitable

When we file income tax return, a question arises that which regime the taxpayer should choose? The government provide both Old Tax Regime and the New Tax Regime, the taxpayer can choose it according to their financial habits, income structure and long term goals.

So how do you know which regime is beneficial for you? Lets see,

Who Should Choose the Old Tax Regime?

The Old Regime is suitable for those who:
Those who are actively investing in the tax-saving schemes which are deductible (like PPF, NSC, ELSS, or Insurance)
Those who pay for health insurance, claim HRA, or have loan interest deductions.
If you are senior citizens or super senior citizens, because there is higher exemption limit in old regime for them.
Those who needs deduction under the section like 80C, 80D, 80G, 24(b) and other
Those who have home loan, education loan, or dependents’ expenses which are deductible in old regime tax slab.

Who Should Choose the New Tax Regime?

Those who are not investing in the tax-saving schemes which are deductible (like PPF, NSC, ELSS, or Insurance)
Those who have a simple salary structure (no HRA, LTA)
If you are a freelancer, gig worker, or self-employed individual who doesn’t have much deduction to claim.
Those who prefer ease filing.
Individual having income up to ₹7,00,000 because of section 87A rebate, their tax liability will become zero.

Deductions Available Under Old vs New Tax Regime

Deductions Available Under Old Regime:

A various range of deduction are available under Old Regime

Section	Deduction Type	Limit
80C	Investments like PPF, LIC, ELSS, EPF, tuition fees	₹1,50,000
80CCD(1B)	NPS (additional to 80C)	₹50,000
80D	Health insurance premium	₹25,000 – ₹1,00,000
24(b)	Home loan interest (self-occupied)	₹2,00,000
80E	Interest on education loan	No limit
80G	Donations to charitable institutions	50%–100% (subject to conditions)
HRA	House Rent Allowance	Based on salary & rent
LTA	Leave Travel Allowance	As per actuals (conditions apply)
Standard Deduction	For salaried/pensioners	₹50,000

Deductions Allowed in New Regime:

Deductions available under the new regime are very few, deduction under 80C, 80D, 80G, HRA, etc., are not allowed.

Deduction / Exemption	Status
Standard Deduction (Salary/Pension)	₹50,000
EPF/NPS Employer Contribution (Sec 80CCD(2))	Allowed
Agniveer Corpus Fund (Sec 80CCH)	Allowed
Rebate under Section 87A (Income ≤ ₹7L)	Allowed

Who needs to select which Regime

The taxpayer should choose the regime according to their tax benefit, income structure, and investment habit.

1) Salaried Employees

Choose New Regime if:

You don’t claim deductions like HRA, 80C, or 80D.
Your income is up to ₹7 lakh (you pay zero tax due to Section 87A).
You prefer a simple tax process with no paperwork

Choose the Old Regime if:

You are eligible for the deduction under 80C, 80D, 80G, HRA, etc.
Your salary structure includes allowances like LTA and conveyance.
You have a home loan and claim interest deduction under Section 24.

2) Senior Citizens (60–79 years)

Prefer the Old Regime if:

You have regular medical and insurance expenses.
You invest in tax-saving schemes and can benefit from the ₹3 lakh exemption.

New Regime may work only if:

You don’t have many deductions and want a hassle-free filing process.

3) Super Senior Citizens (80+ years)

Old Regime is more beneficial:

It provide higher exemption limit of 5 lakhs.
Best for those with interest income, pension, and regular deductions.
Comparison chart in New Regime and Old Regime Slabs

Let’s try to understand the difference between both Old Tax Regime and New Tax Regime in India?

Choosing a right regime is very important because it will help you to save money legally. Let’s do a detailed comparison of income tax slabs under both regimes for FY 2024–25 (AY 2025–26).

Annual Income (₹)	Old Regime (Age < 60)	Old Regime (60–<80)	Old Regime (80+)	New Regime (All Ages)
Up to ₹2,50,000	Nil	Nil	Nil	Nil
₹2,50,001 – ₹3,00,000	5%	Nil	Nil	Nil
₹3,00,001 – ₹5,00,000	5%	5%	Nil	5%
₹5,00,001 – ₹6,00,000	20%	20%	20%	5%
₹6,00,001 – ₹9,00,000	20%	20%	20%	10%
₹9,00,001 – ₹12,00,000	20%	20%	20%	15%
₹12,00,001 – ₹15,00,000	30%	30%	30%	20%
Above ₹15,00,000	30%	30%	30%	30%

What are benefits to senior citizen and super senior Citizen in income tax

In India a special exemption in tax is given to the senior citizens (whose who are 60 or above aged) and to super senior citizens (whose who are 80 or above aged) to reduce the tax burden during their retirement age, but these benefits are only allowed in old tax regime not in new tax regime. Lets see the benefits

1. Higher Basic Exemption Limits

Category	Age	Basic Exemption Limit
General Taxpayer	Below 60	₹2.5 lakh
Senior Citizen	60 to <80	₹3.0 lakh
Super Senior Citizen	80+	₹5.0 lakh

2. No Advance Tax for Senior Citizens (Non-Business Income)

Senior citizen those who don’t have any business income are exempted from paying advance tax. They can pay the full amount of tax at once while filing their return.

3. Higher Deductions on Medical Expenses (Section 80D)

Taxpayer	Deduction Limit (Health Insurance Premium)
Senior Citizens	₹50,000
Medical expenses (if uninsured)	Up to ₹50,000

4. Section 80TTB – Deduction on Interest Income

Senior and super senior citizens can claim deduction up to ₹50,000 on:

Interest from savings accounts
Fixed deposits and recurring deposits with banks, co-op banks, and post offices

The government have provide two structure old tax regime and new tax regime so the taxpayer have flexibility to choose the best regime which can help them in money saving.

The ideal regime depends on the income structure, investment behaviour, age, and tax planning goals. Before filing income tax return, it’s better to calculate the tax liability under both regime to reduce the tax burden legally.

You can write us on info@sktaxlawfirm.com or call on 📞 +91-9719586772 for Income Tax Return in India.

Tax Slabs FY 24-25 (AY 25-26)

Inquire Now