{"id":79,"date":"2025-02-04T12:05:01","date_gmt":"2025-02-04T12:05:01","guid":{"rendered":"https:\/\/kvstax.com\/blog\/?p=79"},"modified":"2025-02-12T12:41:53","modified_gmt":"2025-02-12T12:41:53","slug":"heres-a-simplified-version-of-the-income-tax-slab-for-fy-2024-25-and-fy-2025-26-explaining-both-the-old-and-new-tax-regimes","status":"publish","type":"post","link":"https:\/\/kvstax.com\/blog\/heres-a-simplified-version-of-the-income-tax-slab-for-fy-2024-25-and-fy-2025-26-explaining-both-the-old-and-new-tax-regimes\/","title":{"rendered":"Here\u2019s a simplified version of the Income Tax Slab for FY 2024-25 and FY 2025-26, explaining both the Old and New Tax Regimes:"},"content":{"rendered":"\n
\"\"<\/figure>\n\n\n\n

Here\u2019s a simplified version of the Income Tax Slab for FY 2024-25 and FY 2025-26, explaining both the Old and New Tax Regimes:<\/strong><\/p>\n\n\n\n

New Tax Regime for FY 2024-25 & FY 2025-26<\/strong><\/h3>\n\n\n\n

Under the New Tax Regime<\/strong>, there are no exemptions<\/strong> or deductions<\/strong> (like HRA, insurance, etc.), but the tax rates are lower. Here\u2019s how the tax is calculated:<\/p>\n\n\n\n

Income Slabs & Tax Rates (FY 2024-25 & FY 2025-26)<\/strong><\/h4>\n\n\n\n
Income Range<\/strong><\/th>Tax Rate<\/strong><\/th><\/tr><\/thead>
Up to \u20b93,00,000<\/td>NIL<\/strong><\/td><\/tr>
\u20b93,00,001 to \u20b97,00,000<\/td>5%<\/strong><\/td><\/tr>
\u20b97,00,001 to \u20b910,00,000<\/td>10%<\/strong><\/td><\/tr>
\u20b910,00,001 to \u20b912,00,000<\/td>15%<\/strong><\/td><\/tr>
\u20b912,00,001 to \u20b915,00,000<\/td>20%<\/strong><\/td><\/tr>
\u20b915,00,001 and above<\/td>30%<\/strong><\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

Key Features of the New Tax Regime:<\/strong><\/h4>\n\n\n\n
    \n
  • Rebate (Section 87A):<\/strong> If your income is up to \u20b97,00,000<\/strong>, you get a tax rebate<\/strong> of up to \u20b925,000, making your tax liability zero<\/strong>.<\/li>\n\n\n\n
  • Standard Deduction:<\/strong> From FY 2024-25, a standard deduction of \u20b975,000<\/strong> is available.<\/li>\n\n\n\n
  • No Exemptions:<\/strong> You cannot claim deductions like HRA, 80C, or home loan interest under the New Regime.<\/li>\n<\/ul>\n\n\n\n
    \n\n\n\n

    Old Tax Regime for FY 2024-25 & FY 2025-26<\/strong><\/h3>\n\n\n\n

    Under the Old Tax Regime<\/strong>, you can claim various exemptions and deductions, like HRA, 80C, medical insurance, etc. The tax rates are higher compared to the New Regime.<\/p>\n\n\n\n

    Income Slabs & Tax Rates for Different Age Groups:<\/strong><\/h4>\n\n\n\n
    Income Range<\/strong><\/th>Tax Rate (Below 60 years)<\/strong><\/th>Tax Rate (60 to 80 years)<\/strong><\/th>Tax Rate (Above 80 years)<\/strong><\/th><\/tr><\/thead>
    Up to \u20b92,50,000<\/td>NIL<\/strong><\/td>NIL<\/strong><\/td>NIL<\/strong><\/td><\/tr>
    \u20b92,50,001 to \u20b95,00,000<\/td>5%<\/strong><\/td>5%<\/strong><\/td>NIL<\/strong><\/td><\/tr>
    \u20b95,00,001 to \u20b910,00,000<\/td>20%<\/strong><\/td>20%<\/strong><\/td>20%<\/strong><\/td><\/tr>
    \u20b910,00,001 and above<\/td>30%<\/strong><\/td>30%<\/strong><\/td>30%<\/strong><\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n

    Key Features of the Old Tax Regime:<\/strong><\/h4>\n\n\n\n
      \n
    • Deductions Available<\/strong>: You can claim deductions under 80C<\/strong> (for investments), 80D<\/strong> (for insurance), HRA<\/strong> (House Rent Allowance), LTA<\/strong> (Leave Travel Allowance), etc.<\/li>\n\n\n\n
    • Rebate (Section 87A)<\/strong>: If your income is up to \u20b95,00,000<\/strong>, you get a tax rebate<\/strong> of \u20b912,500, making your tax liability zero<\/strong>.<\/li>\n<\/ul>\n\n\n\n
      \n\n\n\n

      Comparison of New vs Old Tax Regime<\/strong><\/h3>\n\n\n\n
        \n
      • Old Tax Regime<\/strong>: Great if you have many exemptions or deductions like home loan interest or insurance premiums.<\/li>\n\n\n\n
      • New Tax Regime<\/strong>: Ideal if you don\u2019t want to claim deductions, as it offers simpler tax filing and lower tax rates.<\/li>\n<\/ul>\n\n\n\n

        Choosing Between Old and New Regime:<\/strong><\/h4>\n\n\n\n
          \n
        • Go for the New Regime<\/strong> if you don\u2019t have many investments or exemptions.<\/li>\n\n\n\n
        • Go for the Old Regime<\/strong> if you have tax-saving investments and can claim various exemptions.<\/li>\n<\/ul>\n\n\n\n
          \n\n\n\n

          Surcharge:<\/strong><\/h3>\n\n\n\n
            \n
          • 10%<\/strong> surcharge if income is between \u20b950 lakhs and \u20b91 crore.<\/li>\n\n\n\n
          • 15%<\/strong> surcharge if income is between \u20b91 crore and \u20b92 crore.<\/li>\n\n\n\n
          • 25%<\/strong> surcharge if income is between \u20b92 crore and \u20b95 crore.<\/li>\n\n\n\n
          • 37%<\/strong> surcharge if income is above \u20b95 crore.<\/li>\n<\/ul>\n\n\n\n

            (Note: This surcharge is only applicable to high-income earners<\/strong>.)<\/p>\n\n\n\n

            \n\n\n\n

            Health and Education Cess <\/strong><\/h2>\n\n\n\n

            The Health and Education Cess <\/strong>is an additional tax levied on the total income tax liability, aimed at funding the government\u2019s health and education initiatives.<\/p>\n\n\n\n

            For individuals, companies, and other entities, the cess is 4%<\/strong> of the total tax liability. This cess is applicable on the total tax calculated after applying the relevant income tax slabs and any other surcharges.<\/p>\n\n\n\n

            For example, if your total income tax liability (after applying the tax slabs) is Rs. 1,00,000, the Health and Education Cess will be calculated as:<\/p>\n\n\n\n

            Cess = 4% of Rs. 1,00,000 = Rs. 4,000<\/strong><\/p>\n\n\n\n

            So, your final tax payable will be:<\/p>\n\n\n\n

            Tax Payable = Income Tax + Cess = Rs. 1,00,000 + Rs. 4,000 = Rs. 1,04,000<\/strong><\/p>\n\n\n\n

            This cess is mandatory and added to the final amount of income tax payable.<\/p>\n\n\n\n

            This version breaks it down into easy-to-understand terms and focuses on the important points you need to know. If you need help with anything specific like calculating taxes, feel free to ask!<\/p>\n\n\n\n

            Disclaimer:<\/strong>
            The information provided in this blog is for general informational and education purposes only and does not constitute financial, investment, or professional advice. Always conduct your own research or consult with a qualified financial advisor before making any investment decisions. Investing involves risk, and there is no guarantee of returns. The views expressed here are solely those of the author and do not reflect the opinions of any financial institution, company, or organization. KVSTAX is not responsible for any financial decisions or actions taken based on the content of this blog.<\/strong><\/p>\n\n\n\n

            <\/p>\n","protected":false},"excerpt":{"rendered":"

            Here\u2019s a simplified version of the Income Tax Slab for FY 2024-25 and FY 2025-26, […]<\/p>\n","protected":false},"author":1,"featured_media":80,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[20,22,16,15,21,17],"class_list":["post-79","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blog","tag-budget2025-2","tag-budget2025-2026-2","tag-budget2025expectations-taxationreforms-incometaxupdates-gstchanges-taxpolicy","tag-budget2025expectations-taxationupdates-incometax-gst","tag-budget2026","tag-budgetplanning-taxdeductions-tdschanges-gstupdates"],"_links":{"self":[{"href":"https:\/\/kvstax.com\/blog\/wp-json\/wp\/v2\/posts\/79","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/kvstax.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/kvstax.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/kvstax.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/kvstax.com\/blog\/wp-json\/wp\/v2\/comments?post=79"}],"version-history":[{"count":1,"href":"https:\/\/kvstax.com\/blog\/wp-json\/wp\/v2\/posts\/79\/revisions"}],"predecessor-version":[{"id":81,"href":"https:\/\/kvstax.com\/blog\/wp-json\/wp\/v2\/posts\/79\/revisions\/81"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/kvstax.com\/blog\/wp-json\/wp\/v2\/media\/80"}],"wp:attachment":[{"href":"https:\/\/kvstax.com\/blog\/wp-json\/wp\/v2\/media?parent=79"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/kvstax.com\/blog\/wp-json\/wp\/v2\/categories?post=79"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/kvstax.com\/blog\/wp-json\/wp\/v2\/tags?post=79"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}