The financial year 2024-25 brings clarity and simplicity for individual taxpayers under the new income tax regime. The revised slab rates aim to reduce tax liability for the middle-income group and promote a simpler tax structure without the need for multiple deductions and exemptions.
📊 New Regime Tax Slabs for FY 2024-25
Under the new regime, the following tax rates apply to individuals (below 60 years of age):
| Annual Income Range (₹) | Tax Rate |
|---|---|
| 0 – 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% |
A standard deduction of ₹50,000 is also available under the new regime, and rebate under section 87A provides full tax relief for incomes up to ₹7,00,000 (post deductions).
💰 Tax Liability Examples for Different Income Levels
Here’s how much income tax you would owe under the new regime, assuming only the standard deduction of ₹50,000:
| Gross Annual Income | Taxable Income (after ₹50,000 deduction) | Tax Before Cess (₹) | Cess (4%) (₹) | Total Tax Payable (₹) |
|---|---|---|---|---|
| ₹5,00,000 | ₹4,50,000 | 0 (Rebate u/s 87A) | 0 | 0 |
| ₹7,50,000 | ₹7,00,000 | 25,000 | 1,000 | 26,000 |
| ₹10,00,000 | ₹9,50,000 | 62,500 | 2,500 | 65,000 |
| ₹12,50,000 | ₹12,00,000 | 1,12,500 | 4,500 | 1,17,000 |
| ₹15,00,000 | ₹14,50,000 | 1,87,500 | 7,500 | 1,95,000 |
| ₹20,00,000 | ₹19,50,000 | 3,37,500 | 13,500 | 3,51,000 |
| ₹30,00,000 | ₹29,50,000 | 6,37,500 | 25,500 | 6,63,000 |
| ₹50,00,000 | ₹49,50,000 | 12,37,500 | 49,500 | 12,87,000 |
| ₹1,00,00,000 | ₹99,50,000 | 27,37,500 | 1,09,500 | 28,47,000 |
⚠️ Additional Notes
- Section 87A rebate ensures no tax is payable if your net taxable income does not exceed ₹7,00,000.
- Surcharge is applicable on higher income:
- 10% for income ₹50 lakh – ₹1 crore
- 15% for income above ₹1 crore
- A 4% Health and Education Cess is added on the total tax (including surcharge).
✅ Should You Opt for the New Regime?
The new regime is ideal for individuals who:
- Do not claim many exemptions (like HRA, LTA)
- Prefer a flat and transparent tax structure
- Have fewer investments in tax-saving instruments
However, if you actively invest in 80C, 80D, home loan interest, or claim HRA, comparing both regimes using a tax calculator is advisable.
Hi, I’m Abhinay Gupta, I am a motivated digital marketer and a content creator with an experience of more than a year. By qualification, I m a BCA graduate and founded Salary Guy intending to keep people updated with all the latest financial, career, politics happening around them.
