What Is the New Income Tax Slab for 2025?
What Is the New Income Tax Slab for 2025?
Updated Tax Slabs for FY 2024–25 | AY 2025–26 Under Old and New Regime
As taxpayers prepare for the new financial year, one of the most common questions is:
“What is the income tax slab for 2025?”
(i.e., for Financial Year 2024–25, Assessment Year 2025–26)
The income tax slabs for FY 2024–25 remain unchanged from the previous year, as no major revisions were announced in the Interim Budget 2024. However, the new tax regime continues to be the default option for all taxpayers.
Let’s break down the current tax slabs under both the new and old regimes, so you can plan your taxes effectively.
✅ What Is a Tax Slab?
In India, income tax is charged based on slab rates. A slab refers to a range of income levels, and each range is taxed at a different rate. This progressive taxation system ensures that higher income earners pay more tax.
You can now choose between:
• The old regime (with deductions & exemptions)
• The new regime (lower rates, but no deductions like 80C, HRA, etc.)
🆕 New Tax Regime (Default from FY 2023–24 Onward)
| Income Slab (₹) | 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% |
✅ Key Highlights of New Regime for FY 2024–25:
• Standard deduction of ₹50,000 is available for salaried and pensioners
• Rebate under Section 87A available for income up to ₹7 lakh → Zero tax
• No deductions for 80C, 80D, HRA, LTA, home loan interest, etc.
• Employer's NPS contribution (Section 80CCD(2)) is still allowed
🧾 Old Tax Regime (Optional)
| Income Slab (₹) | Tax Rate |
| 0 – 2,50,000 | Nil |
| 2,50,001 – 5,00,000 | 5% |
| 5,00,001 – 10,00,000 | 20% |
| Above 10,00,000 | 30% |
✅ Key Benefits of Old Regime:
• Section 80C: ₹1.5 lakh for PF, PPF, ELSS, LIC, etc.
• Section 80D: Health insurance premiums
• HRA & LTA exemptions, home loan interest (Section 24), education loan interest
• Rebate under 87A for income up to ₹5 lakh → Zero tax
📝 The old regime is beneficial if you claim deductions worth ₹2.5–₹3 lakh or more.
📌 Who Should Choose Which Regime?
| Situation | Best Regime |
| Salaried with HRA, 80C, 80D investments | Old regime (more savings) |
| No major deductions, simple salary | New regime (lower rates) |
| Business income, flexible deductions | Depends on structure |
| Income below ₹7 lakh | New regime (full rebate) |
| High housing loan or rent paid | Old regime (deductions apply) |
⚠️ Important Notes for FY 2024–25
• New tax regime is now the default regime, but you can opt-out by choosing the old regime while filing ITR
• Business owners can switch only once, while salaried individuals can switch regimes every year
• No change in surcharge or cess: 4% health and education cess applies to all taxpayers
✅ Final Words
For Financial Year 2024–25 (AY 2025–26), the new tax regime remains unchanged and continues to be the default tax structure.
The old regime is still available, giving flexibility to taxpayers who have eligible deductions and exemptions.
Before you file your return, make sure to compare both regimes to minimize your tax liability.
