Income Tax Slab Rates FY 2024-25 (AY 2025-26): New & Old Regime
Last updated: 3 June 2026
For FY 2024-25 (Assessment Year 2025-26), the new tax regime is the default. Slab rates under the new regime: 0% up to ₹3L, 5% for ₹3–7L, 10% for ₹7–10L, 15% for ₹10–12L, 20% for ₹12–15L, and 30% above ₹15L. Section 87A rebate of ₹25,000 makes tax zero for income up to ₹7L. Standard deduction is ₹50,000 for FY 2024-25 (raised to ₹75,000 only from FY 2025-26). Budget 2024 restructured capital gains: LTCG on equity is now 12.5%, STCG is 20%.
₹7L
Zero tax threshold under the new regime for FY 2024-25 — thanks to ₹50,000 standard deduction and ₹25,000 Section 87A rebate. Gross income up to ₹7.5 lakh with standard deduction results in ₹7L taxable income and nil tax.
New Tax Regime Slabs — FY 2024-25 (Default Regime)
| Income Slab | Tax Rate | Tax on Slab |
|---|---|---|
| Up to ₹3,00,000 | Nil | ₹0 |
| ₹3,00,001 – ₹7,00,000 | 5% | Up to ₹20,000 |
| ₹7,00,001 – ₹10,00,000 | 10% | Up to ₹30,000 |
| ₹10,00,001 – ₹12,00,000 | 15% | Up to ₹30,000 |
| ₹12,00,001 – ₹15,00,000 | 20% | Up to ₹60,000 |
| Above ₹15,00,000 | 30% | 30% of income above ₹15L |
Key benefits — New regime FY 2024-25: Standard deduction ₹50,000 (salaried & pensioners) | 87A rebate ₹25,000 for income ≤₹7L | Surcharge capped at 25% (no 37% surcharge) | Family pension standard deduction ₹15,000.
Old Tax Regime Slabs — FY 2024-25
| 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% |
Old regime advantages: All exemptions and deductions available — HRA, LTA, 80C (₹1.5L), 80D, Section 24 home loan interest, 80E, 80G, etc. 87A rebate of ₹12,500 for income ≤₹5L.
New Regime vs Old Regime — Quick Comparison
New Regime Default
- Lower slab rates
- Standard deduction ₹50,000
- 87A rebate ₹25,000 (≤₹7L)
- No HRA / LTA exemption
- No 80C / 80D deductions
- Surcharge max 25%
- Better for income ≤₹7.5L or low deductions
Old Regime Opt-in
- Higher slab rates
- Standard deduction ₹50,000
- 87A rebate ₹12,500 (≤₹5L)
- HRA / LTA exempt
- 80C ₹1.5L + 80D + Section 24
- Surcharge up to 37%
- Better if deductions exceed ~₹3.75L
Budget 2024 Capital Gains Changes (Effective 23 July 2024)
| Asset Type | Before Budget 2024 | After Budget 2024 |
|---|---|---|
| LTCG — Listed equity / equity MF | 10% above ₹1L exemption | 12.5% above ₹1.25L exemption |
| STCG — Listed equity / equity MF | 15% | 20% |
| LTCG — Property (unlisted) | 20% with indexation | 12.5% without indexation (or 20% with indexation for pre-23 Jul 2024 acquisitions) |
| Holding period — listed equity | 12 months | 12 months (unchanged) |
| Holding period — property | 36 months | 24 months |
| LTCG — Debt MF (post Apr 2023) | As per slab | As per slab (unchanged) |
Corporate and Other Tax Rates FY 2024-25
| Entity | Tax Rate | Notes |
|---|---|---|
| Domestic company (general) | 30% | Plus surcharge & cess |
| Domestic company (Section 115BAA) | 22% | No MAT; no exemptions |
| New manufacturing company (115BAB) | 15% | Set up and commenced before 31 Mar 2024 |
| Foreign company | 40% | Plus surcharge & cess |
| Health & Education Cess | 4% | On income tax + surcharge |
| Surcharge (new regime individuals) | Max 25% | 37% surcharge abolished in new regime |
87A Rebate Clarification: The ₹25,000 rebate under Section 87A is available only on normal income tax — not on special rate taxes such as LTCG under Section 112A (equity) or STCG under Section 111A. Even if your total income is below ₹7 lakh, capital gains tax cannot be offset by 87A rebate.
Frequently Asked Questions
What are the income tax slab rates for FY 2024-25 under the new regime?
Under the new tax regime (default from FY 2023-24), the slab rates for FY 2024-25 (AY 2025-26) are: ₹0–3 lakh: Nil; ₹3–7 lakh: 5%; ₹7–10 lakh: 10%; ₹10–12 lakh: 15%; ₹12–15 lakh: 20%; above ₹15 lakh: 30%. The 87A rebate of ₹25,000 applies for total income up to ₹7 lakh, making effective tax zero at ₹7 lakh. A standard deduction of ₹50,000 is available for salaried individuals under the new regime for FY 2024-25 (raised to ₹75,000 only from FY 2025-26 onward).
Did the standard deduction change in Budget 2024 for FY 2024-25?
Yes, Budget 2024 (Union Budget July 2024) announced an increase in standard deduction from ₹50,000 to ₹75,000 under the new tax regime — but this change is effective from FY 2025-26 (AY 2026-27). For FY 2024-25, the standard deduction under the new regime remains ₹50,000. The old regime standard deduction also stays at ₹50,000 for FY 2024-25. Family pensioners get ₹15,000 standard deduction (unchanged).
How did Budget 2024 change capital gains tax rates?
Budget 2024 (effective 23 July 2024) made significant changes to capital gains: Long-Term Capital Gains (LTCG) on equity and equity mutual funds increased from 10% to 12.5% (exemption limit raised from ₹1 lakh to ₹1.25 lakh). Short-Term Capital Gains (STCG) on equity increased from 15% to 20%. For property and other unlisted assets, LTCG rate is 12.5% without indexation (or taxpayers may opt for 20% with indexation for property acquired before 23 July 2024). Holding period for LTCG on listed securities remains 12 months; for property it is 24 months (reduced from 36 months).
What is the 87A rebate limit for FY 2024-25?
Under Section 87A for FY 2024-25, the rebate is ₹25,000 for individuals with total income up to ₹7 lakh under the new tax regime. This means if your total income (before standard deduction) is ₹7.5 lakh, your taxable income after ₹50,000 standard deduction is ₹7 lakh and tax is fully offset by the 87A rebate — net tax zero. Under the old tax regime, the 87A rebate is ₹12,500 for income up to ₹5 lakh. Note: 87A rebate is not available on special rate income like LTCG under Section 112A.
New regime vs old regime FY 2024-25 — which is better?
The new regime is default and generally better for those with fewer deductions. The old regime remains beneficial if you have large deductions: 80C (₹1.5 lakh), 80D (health insurance), HRA exemption, home loan interest under Section 24, and other exemptions. A quick break-even: if your total deductions and exemptions exceed approximately ₹3.75 lakh (for ₹15 lakh income), the old regime saves more tax. For income below ₹7 lakh with standard deduction under new regime, tax is zero — making new regime clearly preferable. TaxClue CAs calculate both scenarios before filing.
Last updated: 3 June 2026. This page is for informational purposes only and does not constitute professional tax or legal advice. Consult a qualified CA for your specific situation. Rates are for FY 2024-25 (AY 2025-26) as per the Finance Act 2024.
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