The new financial year just started on April 1st. This means it’s time to think about income tax! The rules for this year (2024-25) are the same as last year. Here’s a quick guide:
Choosing Tax Regime
- The new tax regime is the default.
- Choose the old regime if you get more benefits.
- Tell your employer which one you want.
Basic Exemption Limit (Income not taxed)
| Age Group | New Regime | Old Regime |
| Everyone | Rs 3 lakh | Below 60: Rs 2.5 lakh |
| Seniors (60-80 years) | Rs 3 lakh | Rs 3 lakh |
| Super Seniors (80+ years) | Rs 3 lakh | Rs 5 lakh |
Tax Rates Under the New Tax Regime
| Income Range (In Rs) | Tax Rate (%) |
| 0-3,00,000 | 0 |
| 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 |
Tax Rebates (Reduce Tax You Pay)
- The new regime offers more tax rebates than the old regime.
- New regime: Rebate up to Rs 25,000 (income tax-free up to Rs 7 lakh).
- Old regime: Rebate up to Rs 12,500 (income tax-free up to Rs 5 lakh).
Deductions & Exemptions (Reduce Taxable Income)
- The old regime offers more deductions and exemptions than the new regime.
- New regime: Standard deduction (Rs 50,000) and NPS contribution deduction.
- Old regime: Many deductions (e.g. Sec 80C) and exemptions (e.g. HRA).
Filing Income Tax Returns (ITR)
- Choose the old regime by filing an ITR before July 31st.
- The new regime is the default if you file late (between Aug 1 – Dec 31).
Surcharge Rates
- New regime: 25% for incomes over Rs 5 crore
- Old regime: 37% for incomes over Rs 5 crore
