Points To Be Considered In Filing Income Tax Returns Of FY 2024-2025 AY 2025-2026
For the Financial Year 2024-25 (Assessment Year 2025-26), individual taxpayers in India can choose between the Old and New Tax Regimes. The Old Tax Regime features progressive tax slabs that vary based on age: individuals below 60 years have a basic exemption up to Rs. 2,50,000, senior citizens (60-79 years) up to Rs. 3,00,000, and super senior citizens (80 years and above) up to Rs. 5,00,000, with rates increasing to 30% for income above Rs. 10,00,000. This regime permits a wide array of deductions and exemptions, including standard deduction, HRA, LTA, interest on self-occupied house property, and various deductions under Section 80C to 80U. Conversely, the New Tax Regime offers a simplified structure with uniform tax slabs for all ages, starting with a nil rate up to Rs. 3,00,000 and reaching 30% for income above Rs. 15,00,000. While it limits most deductions, it provides a standard deduction of Rs. 75,000 for salaried and pensioners, and allows deductions for interest on let-out property, family pension, and employer’s NPS contributions. Both regimes are subject to Health and Education Cess. Rebate under Section 87A is Rs. 12,500 for the Old Regime and Rs. 25,000 for the New Regime. Additionally, the Alternative Minimum Tax (AMT) applies only to the Old Regime, and contributions to the Agniveer Corpus Fund are allowed under both.
INCOME TAX SLAB FY 2024–25 (AY 2025–26) for INDIVIDUAL
This chart summarizes the applicable income tax rates and deductions for the Financial Year 2024–25 (Assessment Year 2025–26) under both the Old and New Tax Regimes, as per the Income Tax Act, 1961.
OLD TAX REGIME
1) Age is Below 60 Years
Total Income | Rate of Tax |
Upto Rs.2,50,000 | Nil |
2,50,001 to 5,00,000 | 5% |
5,00,001 to 10,00,000 | 20% |
Above 10,00,000 | 30% |
2) Senior Citizens Age is 60 Years or more but less than 80 Years (Resident)
Total Income | Rate of Tax |
Upto Rs.3,00,000 | Nil |
3,00,001 to 5,00,000 | 5% |
5,00,001 to 10,00,000 | 20% |
Above 10,00,000 | 30% |
3) Super Senior Citizens Age is 80 Years or more (Resident)
Total Income | Rate of Tax |
Upto Rs.5,00,000 | Nil |
5,00,001 to 10,00,000 | 20% |
Above 10,00,000 | 30% |
NEW TAX REGIME
For All Ages
Total Income | Rate of Tax |
Upto Rs.3,00,000 | Nil |
3,00,001 to 6,00,000 | 5% |
6,00,001 to 9,00,000 | 10% |
9,00,001 to 12,00,000 | 15% |
12,00,001 to 15,00,000 | 20% |
Above 15,00,000 | 30% |
Claiming of Exemptions or Deductions Allowed or Not
Particulars | Old Tax Regime | New Tax Regime |
Standard Deduction for Salaried and Pensioner | Allowed (50000) | Allowed (75000) |
Deduction for Professional Tax paid | Allowed | Not Allowed |
House Rent Allowance Exemption | Allowed | Not Allowed |
Leave Travel Concession | Allowed | Not Allowed |
Deduction of Interest on Self Occupied House Property up to 2 Lacs | Allowed | Not Allowed |
Deduction of Interest on Let Out Property up to 2 Lacs | Allowed | Allowed |
Deduction for Family Pension up to Rs.15000 | Allowed | Allowed |
Employer’s Contribution to NPS 80CCD(2) | Allowed | Allowed |
Employee’s own Contribution to NPS | Allowed | Not Allowed |
Deduction Under Section 80C to 80U (Example: PF, LIC Premium, Mutual Fund, HL Principal, Medical Insurance, Donation, Interest on Education Loan, Physically Handicapped Deduction etc.) | Allowed | Not Allowed |
80 TTA (Interest on Saving Accounts Upto Rs.10,000) | Allowed | Not Allowed |
80 TTB (Interest on Savings, FDR, others for senior citizens upto Rs.50,000) | Allowed | Not Allowed |
Other Information:
- Health and Education Cess: Charged under both regimes
- Rebate under Section 87A:
- Old Tax Regime: 12,500
- New Tax Regime: 25,000 (Subject to MR)
- AMT:
- Old Tax Regime: Applicable
- New Tax Regime: Not Applicable
- Contributions to Agniveer Corpus Fund / Agnipath Scheme: Allowed in both regimes