Tax
The Tax Slabs & Rebate (Section 87A) applicable for FY 2024-25 (AY 2025-26) under both tax regimes:
Tax Slabs & Rebate – FY 2024-25 (AY 2025-26)
New Tax Regime (Default Regime)
| Annual Income Slab (₹) | Tax Rate |
| Up to ₹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% |
| Above ₹15,00,000 | 30% |
- Standard Deduction: ₹75,000 (for salaried & pensioners)
- Rebate under Section 87A:
- Available if total income ≤ ₹7,00,000
- Rebate amount: up to ₹25,000
- Effective tax = ₹0 if income ≤ ₹7,00,000
Old Tax Regime (Optional)
| Annual Income Slab (₹) | Tax Rate |
| Up to ₹2,50,000 | NIL |
| ₹2,50,001 – ₹5,00,000 | 5% |
| ₹5,00,001 – ₹10,00,000 | 20% |
| Above ₹10,00,000 | 30% |
- Standard Deduction: ₹75,000 (for salaried & pensioners)
- Rebate under Section 87A:
- Available if total income ≤ ₹5,00,000
- Rebate amount: up to ₹12,500
- Effective tax = ₹0 if income ≤ ₹5,00,000
Quick Comparison
| Feature | New Regime | Old Regime |
| Basic Exemption Limit | ₹3,00,000 | ₹2,50,000 |
| Rebate Limit (Sec 87A) | ₹7,00,000 | ₹5,00,000 |
| Max Rebate Amount | ₹25,000 | ₹12,500 |
| Standard Deduction | ₹75,000 | ₹75,000 |
| Other Deductions (80C, 80D…) | Not allowed (mostly) | Allowed |
Section-Wise Deductions & Exemptions – Old Regime (FY 2024-25)
| Section | Purpose | Limit (₹) |
| 16(ia) | Standard Deduction (Salary/Pension) | ₹75,000 |
| 80C | Investments (LIC, PPF, ELSS, etc.) | ₹1,50,000 |
| 80CCD(1B) | Additional NPS (self) | ₹50,000 (extra over 80C) |
| 80CCD(2) | Employer’s NPS contribution | Up to 10–14% of salary |
| 80D | Health Insurance | ₹25,000 (₹50,000 for seniors) |
| 80E | Education Loan Interest | No limit (up to 8 years) |
| 80TTA/TTB | Interest on Savings (Non/Senior) | ₹10,000 / ₹50,000 |
| 80G | Donations to Charities | 50% or 100% (with limits) |
| 80U | Disability (self) | ₹75,000 / ₹1,25,000 (severe) |
| 80DD | Dependent’s Disability | ₹75,000 / ₹1,25,000 (severe) |
| 80DDB | Critical Illness Treatment | ₹40,000 / ₹1,00,000 (senior) |
| 24(b) | Home Loan Interest (self-occupied) | ₹2,00,000 |
| 10(13A) | HRA (House Rent Allowance) | As per actuals & rent paid |
| 10(5) | Leave Travel Allowance (LTA) | 2 times in 4 years (conditions) |
| 10(10AA) | Leave Encashment (on retirement) | ₹25,00,000 |
| 57(iia) | Family Pension Deduction | ₹15,000 or ⅓ of pension (lower) |
Summary: How Much Can You Save?
- Old Regime:
- Standard deduction (₹75K) + 80C (₹1.5L) + 80D (₹25K) + home loan interest (₹2L) = ≈ ₹4.5 lakh potential reductions.
- New Regime:
- Only standard deduction (₹75K) and employer NPS contribution.
Which Regime Should You Choose?
- Choose old regime if:
- You have significant 80C/80D investments (≥ ₹1.5 L)
- You pay home loan interest (>₹2 L)
- You receive HRA, LTA, other exemptions
- Choose new regime if:
- You prefer simpler filing
- Your total deductions are minimal
- You fall in lower income slab (≤ ₹7 L), to avail full rebate easily
Highlights for FY 2024‑25
- Standard deduction: ₹75,000 (both regimes) New slabs & rebate: Zero tax up to ₹7.75 L via rebate + slab structure
- 80C limit: ₹1.5 L, only in old regime
About The Author
