ITR Filing 2024: New vs Old Tax Regime - Know The Slabs
itr filing 2024: new vs old tax regime - know the slabs
As the Income Tax filing deadline of July 31, 2024, draws closer, taxpayers need to be aware of the different tax regimes they can choose from - the Old Tax Regime and the New Tax Regime. Each regime comes with its own set of tax slab rates and rules.
About New Tax Regime
Introduced on April 1, 2020, the New Tax Regime, under Section 115BAC, was initially optional for individuals and Hindu Undivided Families (HUFs).
Benefit Of New Tax Regime
It aimed to provide taxpayers with more flexibility in managing their tax obligations.
Nirmala Sitharaman Announcement
However, during the Union Budget proceedings for fiscal year 2023-24, Finance Minister Nirmala Sitharaman announced that the new tax structure would become the default regime.
Tax Slabs Revision And Concessional Tax Rates
The New Tax Regime features revised tax slabs and concessional tax rates, applying uniformly to all taxpayers, including individuals, HUFs, and Association Of Persons (AOPs).
New Tax Regime: Tax Slab
For the financial year 2024-25 (assessment year 2025-26), here are the tax slabs for the New Tax Regime:
- Income up to Rs 3 lakh: No tax
- Income from Rs 3 lakh to Rs 6 lakh: 5%
- Income from Rs 6 lakh to Rs 9 lakh: Rs 15,000 + 10%
- Income from Rs 9 lakh to Rs 12 lakh: Rs 45,000 + 15%
- Income from Rs 12 lakh to Rs 15 lakh: Rs 90,000 + 20%
- Income above Rs 15 lakh: Rs 150,000 + 30%
Related News |
Budget 2024: Income Tax Relief For Those In Lowest Slab May Need To Be Considered In Budget - CII
Old Tax Regime
On the other hand, the Old Tax Regime offers various tax exemptions and deductions for individuals, including HRA, LTA, and deductions under Sections 80C, 80D, 80CCD(1b), and 80CCD(2). Under this regime:
- Income up to Rs 2.5 lakh is exempt from taxation
- Income from Rs 2.5 lakh to Rs 5 lakh is taxed at 5%
- Income from Rs 5 lakh to Rs 10 lakh is taxed at 20%
- Income above Rs 10 lakh is taxed at 30%
Related News |
ITR Filing 2023-24: List Of Essential Documents You Need To Know Before Filing Returns