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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

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I am a Qualified Chartered Accountant and currently a Partner at A. Chauhan & Associates, Ludhiana, Punjab. My key expertise includes: ✅ Bookkeeping & Accounting(Monthly/Annual) ✅ GST Registration & Return Filings (GSTR-1, GSTR-3B, etc.) ✅ Income Tax Return (ITR) Filing & T View Full Profile

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