Income Tax Slab 2025: Complete Guide for New & Old Tax Regimes
Feeling confused about how much tax you need to pay this financial year? You’re not alone. Every year, many salaried and self-employed individuals wonder which tax regime is better and what slab they fall under. In this guide, we’ll simplify the Income Tax Slabs for FY 2024-25 and help you choose the best option between the New Tax Regime and the Old Tax Regime.
New Tax Regime vs Old Tax Regime: What’s the Difference?
New Tax Regime (Default from FY 2024-25)
- Lower tax rates
- No exemptions or deductions (except standard deduction of ₹50,000 now included)
- Simplified structure, better for those with fewer investments
Old Tax Regime
- Higher tax rates
- Allows multiple deductions like 80C, 80D, HRA, home loan interest, etc.
- Better for people with tax-saving investments and expenses
Note: From FY 2024-25, the New Tax Regime is the default. You must opt-in manually for the old regime while filing your ITR.
Income Tax Slabs 2024-25 (New Tax Regime)
| 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% |
| ₹15,00,001 and above | 30% |
Standard Deduction: ₹50,000 available even under the New Regime.
Income Tax Slabs 2024-25 (Old Tax Regime)
| Income Range (₹) | Tax Rate |
|---|---|
| ₹0 – ₹2,50,000 | Nil |
| ₹2,50,001 – ₹5,00,000 | 5% |
| ₹5,00,001 – ₹10,00,000 | 20% |
| ₹10,00,001 and above | 30% |
Rebate Under Section 87A: If your taxable income is up to ₹5 lakh, you get a rebate of up to ₹12,500—meaning tax liabilities 
Which Tax Regime Should You Choose?
Choosing the right regime depends on your income structure, investments, and financial goals.
Choose New Tax Regime if:
- You don’t claim major deductions
- Your salary structure is simple
- You want hassle-free filing
Choose Old Tax Regime if:
- You claim deductions under 80C, 80D, HRA, home loan, etc.
- You actively invest in tax-saving instruments like PPF, ELSS, or life insurance
- Your deductions significantly reduce your taxable income
Helpful Resources
- Income Tax India Official Website
- ITR Filing Portal
- Online Tax Calculator
- More Personal Finance Guides (Internal Link)
FAQs
Can I switch between tax regimes every year?
Yes, salaried individuals can switch regimes every financial year. Business owners can switch only once.
Do I still get deductions under the new regime?
Only the ₹50,000 standard deduction is available. Most other deductions are not allowed.
Is new regime always better?
Not always. Use the tax calculator to compare your tax liability under both regimes.
Conclusion: Be Smart, Save More
Tax planning doesn’t have to be stressful. With a basic understanding of the income slabs and the right strategy, you can save money and file your taxes confidently. Whether you’re a salaried employee or self-employed, the right choice can make a big difference.
📣 What Do You Think?
Which regime are you planning to choose this year—New or Old? Have questions? Drop them in the comments below or contact us directly.
💡 Found this post helpful? Share it with friends or family members who are filing taxes this year!