Income Tax (New Regime)
Finance & Money
Slab-wise tax on a salary income (FY rates, illustrative).
Income
Illustrative New Regime FY 2024-25 slabs. Does not include surcharge or rebates u/s 87A. Verify with a tax professional.
Tax summary
Slab-wise breakdown
| Slab | Rate | Taxable in slab | Tax |
|---|---|---|---|
| 0k – 3L | 0% | ₹ 3,00,000 | ₹ 0 |
| 3L – 7L | 5% | ₹ 4,00,000 | ₹ 20,000 |
| 7L – 10L | 10% | ₹ 3,00,000 | ₹ 30,000 |
| 10L – 12L | 15% | ₹ 2,00,000 | ₹ 30,000 |
| 12L – 15L | 20% | ₹ 2,25,000 | ₹ 45,000 |
| Total slab tax | ₹ 1,25,000 | ||
| + Cess @ 4% | ₹ 5,000 | ||
| Total tax payable | ₹ 1,30,000 | ||
Frequently asked questions
▶How is income tax calculated in India?
Tax is calculated slab-wise on taxable income (gross income minus deductions). Under the new regime for FY 2024-25, the slabs are: 0 percent up to ₹3 lakh, 5 percent from ₹3 to 7 lakh, 10 percent from ₹7 to 10 lakh, 15 percent from ₹10 to 12 lakh, 20 percent from ₹12 to 15 lakh, and 30 percent above ₹15 lakh, plus 4 percent cess. Slabs change in each budget : values here are illustrative.
▶Old regime versus new regime: which should I pick?
The new regime has lower slab rates but disallows most deductions. The old regime has higher rates but allows 80C up to ₹1.5 lakh, 80D, HRA, home loan interest, and more. As a rough rule: if your eligible deductions exceed ₹3.75 to 4 lakh, the old regime usually wins. Use the calculator to compare both for your exact numbers.
▶What is the standard deduction?
The standard deduction is a flat ₹50,000 (old regime) or ₹75,000 (new regime, from FY 2024-25) that salaried individuals and pensioners get automatically, no proof required. It directly reduces taxable income, saving anywhere from ₹2,500 to ₹22,500 depending on your slab. Self-employed individuals do not get this benefit.
▶How does Section 80C save tax?
Section 80C lets you deduct up to ₹1.5 lakh per year (old regime only) for investments and expenses like EPF, PPF, ELSS mutual funds, life insurance premiums, principal repayment of home loan, and tuition fees for two children. At a 30 percent slab, this saves ₹46,800 in tax. Slab rates and limits are illustrative : verify current rules with a CA.
▶What is TDS and how is it different from tax?
TDS (Tax Deducted at Source) is an advance tax that your employer, bank, or client deducts before paying you. It is credited against your final tax liability when you file your return. If your TDS exceeds your actual tax, you get a refund; if it is less, you pay the difference. TDS is a collection mechanism, not a separate tax.
▶Do I have to file ITR if my income is below the basic exemption?
Not always, but it is wise to. Mandatory filing kicks in if you deposited over ₹1 crore in current accounts, spent over ₹2 lakh on foreign travel, paid over ₹1 lakh in electricity, or had foreign assets. Filing also helps with visa applications, loans, and claiming TDS refunds even on small income.