Income Tax Slab Rates for FY 2024-25 (AY 2025-26)

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Income Tax Slab Rates for FY 2024-25 (AY 2025-26), Income Tax Slab Rates for AY 2025-26

Understanding income tax slabs is important for effective tax planning. Whether you’re an individual, HUF, firm, company, trust, or society, knowing the latest income tax slab rates helps in making informed financial decisions.

For the Financial Year 2024-25 (Assessment Year 2025-26), taxpayers can choose between two tax regimes:

New Tax Regime – Lower tax rates but limited exemptions and deductions.
Old Tax Regime – Higher tax rates but allows various deductions under the Income Tax Act, 1961.

In this article, we’ll cover the latest income tax slab rates for individuals, HUFs, firms, companies, trusts, and societies, along with a comparison of the new vs. old tax regime to help you choose the best option.

Income Tax Slab Rates for Individuals & HUFs

New Tax Regime (FY 2024-25 / AY 2025-26)

Income Slab	Tax Rate
Up to ₹3,00,000	Nil
₹3,00,001 to ₹7,00,000	5% on income exceeding ₹3,00,000
₹7,00,001 to ₹10,00,000	10% on income exceeding ₹6,00,000
₹10,00,001 to ₹12,00,000	15% on income exceeding ₹9,00,000
₹12,00,001 to ₹15,00,000	20% on income exceeding ₹12,00,000
Above ₹15,00,000	30% on income exceeding ₹15,00,000

Rebate under Section 87A:
If your taxable income is up to ₹7,00,000, you get a 100% tax rebate, meaning no tax liability.

Old Tax Regime (FY 2024-25 / AY 2025-26)

Income Slab	Tax Rate
Up to ₹2,50,000	Nil
₹2,50,001 to ₹5,00,000	5% on income exceeding ₹2,50,000
₹5,00,001 to ₹10,00,000	20% on income exceeding ₹5,00,000
Above ₹10,00,000	30% on income exceeding ₹10,00,000

Rebate under Section 87A:
If your income is up to ₹5,00,000, you get a full tax rebate, meaning zero tax liability.

Key Takeaway:

The new tax regime has lower rates but no deductions/exemptions like HRA, 80C, 80D, etc.
The old tax regime allows deductions under 80C (PPF, EPF, LIC, etc.), 80D (medical insurance), and others.

Income Tax Slab Rates for Senior & Super Senior Citizens

For Senior Citizens (60-80 years) – Old Tax Regime

Higher exemption limit of ₹3,00,000 instead of ₹2,50,000

Income Slab	Tax Rate
Up to ₹3,00,000	Nil
₹3,00,001 to ₹5,00,000	5%
₹5,00,001 to ₹10,00,000	20%
Above ₹10,00,000	30%

For Super Senior Citizens (80+ years) – Old Tax Regime

Higher exemption limit of ₹5,00,000

Income Slab	Tax Rate
Up to ₹5,00,000	Nil
₹5,00,001 to ₹10,00,000	20%
Above ₹10,00,000	30%

The new tax regime doesn’t provide higher exemption limits for senior citizens.

Income Tax Rates for Firms, Companies

Category	Tax Rate
Partnership Firms & LLPs	30%
Domestic Companies	25% (if turnover is up to ₹400 Cr) / 30% (if turnover exceeds ₹400 Cr)
Foreign Companies	40%
-	-

Surcharge & Cess apply on income exceeding certain limits.

Comparison: New Tax Regime vs. Old Tax Regime

Factors	New Tax Regime	Old Tax Regime
Tax Rates	Lower	Higher
Exemptions/Deductions	Not available	Available
Standard Deduction	₹75,000	₹50,000
HRA, 80C, 80D Benefits	No	Yes
Rebate under Section 87A	Up to ₹7,00,000	Up to ₹5,00,000

Which is better?

New Tax Regime – Ideal for those without major deductions (HRA, 80C, 80D, etc.).
Old Tax Regime – Best if you claim multiple deductions and reduce taxable income.

Frequently Asked Questions (FAQs)

What is the basic exemption limit for FY 2024-25?

New Tax Regime – ₹3,00,000
Old Tax Regime – ₹2,50,000 (₹3,00,000 for senior citizens, ₹5,00,000 for super senior citizens)

Which tax regime should I choose?

If you don’t claim deductions (80C, 80D, HRA, etc.), the New Tax Regime is better.
If you claim multiple deductions, the Old Tax Regime is more beneficial.

Is there a rebate under the new tax regime?

Yes! Under Section 87A, if your taxable income is up to ₹7,00,000, you get a full rebate (zero tax liability).

What is the tax rate for companies?

Domestic Companies – 25% or 30% (based on turnover)
Foreign Companies – 40%

What are the tax rates for LLPs and partnership firms?

30% flat tax rate, along with applicable surcharge and cess.

Disclaimer: This article is for informational purposes only and does not constitute financial advice. Please consult with a qualified financial advisor for personalized guidance.