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Income Tax Slabs FY 2024-25
India operates two parallel income tax regimes since FY 2020-21. Budget 2024 made the new regime the default while retaining the old regime as an option. The two regimes have very different rate structures: the new regime offers lower rates but eliminates most deductions; the old regime has higher rates but allows HRA, home loan interest, 80C, and dozens of other exemptions.
New Regime (Default 2024)
| Income slab | Rate |
|---|---|
| Up to ₹3L | Nil |
| ₹3L – ₹7L | 5% |
| ₹7L – ₹10L | 10% |
| ₹10L – ₹12L | 15% |
| ₹12L – ₹15L | 20% |
| Above ₹15L | 30% |
+ ₹75,000 standard deduction for salaried. Section 87A rebate: zero tax if taxable income ≤ ₹7L.
Old Regime
| Income slab | Rate |
|---|---|
| Up to ₹2.5L | Nil |
| ₹2.5L – ₹5L | 5% |
| ₹5L – ₹10L | 20% |
| Above ₹10L | 30% |
+ ₹50,000 standard deduction for salaried. Section 87A rebate: zero tax if taxable income ≤ ₹5L.
A 4% Health and Education Cess is added to the final tax under both regimes. Surcharge applies for incomes above ₹50L (10%), ₹1Cr (15%), ₹2Cr (25%), and ₹5Cr (37% under old; 25% capped under new).
Key Deductions Available Only Under the Old Regime
The old regime's advantage is its rich set of deductions. If your total deductions exceed the "break-even threshold", the old regime saves you more tax despite its higher rates.
| Deduction | Max limit | Who benefits |
|---|---|---|
| Section 80C (PPF, ELSS, LIC, etc.) | ₹1,50,000 | Everyone |
| Section 80D (Health insurance) | ₹25,000–₹1L | Everyone with health policy |
| HRA (House Rent Allowance) | Actual (formula-based) | Salaried in rented homes |
| Section 24(b) — Home loan interest | ₹2,00,000 | Homeowners with loan |
| Section 80CCD(1B) — NPS | ₹50,000 | NPS subscribers |
| LTA (Leave Travel Allowance) | Actual travel cost | Salaried employees |
| Section 80E — Education loan interest | Full interest amount | Education loan borrowers |
| Section 80G — Donations | 50–100% of donation | Charitable donors |
Break-even analysis: at ₹12L income, the new regime saves ₹0 vs old regime if your total old-regime deductions are ≥ ₹3.75L. Most salaried employees with a home loan and full 80C utilisation exceed this threshold and are better off in the old regime.
Want a detailed comparison with worked examples?
Our guide walks through ₹8L, ₹12L, and ₹20L scenarios with exact calculations.
Data source: Income Tax Department of India. Slabs updated for FY 2024-25 (AY 2025-26) per the Finance Act 2024. Last reviewed: October 2025.