income tax
Published on 29 July 2025
New Tax Regime 2024-25: Key Rates for Resident Individuals
A Clear Look at the New Default Income Tax Regime (FY 2024–25 / AY 2025–26)
The Indian income tax framework has undergone subtle but significant changes for the financial year 2024–25. The new regime—now the default option for all taxpayers—offers simplified slabs with lower rates but fewer deductions.
Revised Income Tax Slabs under the New Regime
| Annual Income (in ₹) | Tax Rate |
|---|---|
| Up to ₹3,00,000 | Nil |
| ₹3,00,001 – ₹7,00,000 | 5% |
| ₹7,00,001 – ₹10,00,000 | 10% |
| ₹10,00,001 – ₹12,00,000 | 15% |
| ₹12,00,001 – ₹15,00,000 | 20% |
| Above ₹15,00,000 | 30% |
Rebate under Section 87A: If your taxable income (after standard deduction) does not exceed ₹7,00,000, you're eligible for a rebate of up to ₹25,000—effectively reducing your tax liability to zero.
Standard Deduction Update
For FY 2024–25, salaried individuals and pensioners can claim a standard deduction of ₹75,000 under the new regime (increased from ₹50,000 earlier). This amount is subtracted from your gross salary/pension income before tax is computed.
Example: Tax Calculation for ₹50 Lakh Salary
Let’s take the case of a salaried resident individual earning ₹50,00,000.
Step 1: Apply Standard Deduction
- Gross salary: ₹50,00,000
- Less standard deduction: ₹75,000
- Net taxable income: ₹49,25,000
Step 2: Calculate Tax Using Slabs
- 0–₹3,00,000: Nil
- ₹3,00,001–₹7,00,000 (₹4L @ 5%): ₹20,000
- ₹7,00,001–₹10,00,000 (₹3L @ 10%): ₹30,000
- ₹10,00,001–₹12,00,000 (₹2L @ 15%): ₹30,000
- ₹12,00,001–₹15,00,000 (₹3L @ 20%): ₹60,000
- ₹15,00,001–₹49,25,000 (₹34.25L @ 30%): ₹10,27,500
Total Tax (before cess): ₹11,67,500 Add 4% Health & Education Cess: ₹46,700 Total Tax Payable: ₹12,14,200
Surcharge Details
No surcharge applies if your total income remains below ₹50 lakh. Once your income crosses this level, surcharge rates kick in at 10% or higher based on slabs.
Things to Keep in Mind
- New regime is the default: If you don't opt out, you're automatically considered under the new regime.
- Fewer deductions, simpler rates: Common deductions like 80C, HRA, or LTA are not available here. The only significant deduction permitted is the ₹75,000 standard deduction.
- Full rebate up to ₹7 lakh: If your income after the standard deduction is ₹7 lakh or less, you owe zero tax under Section 87A.
- Compare both regimes: Taxpayers with large investments, home loans, or medical claims may still find the old regime more beneficial. Review both before filing