New Tax Regime: The time to file income tax returns for FY 2024-25 (AY 2025-26) has started. Many taxpayers are unaware of the income tax slabs applicable under the new tax regime, which is necessary to determine their tax liability. This is because the tax slabs of the previous financial year 2024-25 are different from the slabs of this year 2025-26, which have to be applied while filing returns.
New Tax Regime: The season of filing income tax returns for FY 2024-25 (AY 2025-26) has started. However, many taxpayers are not aware of the income tax slabs applicable under the new tax regime, which is necessary to know their tax liability. This is because the income tax slabs for FY 2024-25 (AY 2025-26) are different from the current financial year 2025-26.
When you file income tax return for AY 2025-26, you will have to use the tax slabs of FY 2024-25. In the ITR filed for FY 2024-25, you will not be able to claim tax rebate under section 87A on net taxable income up to Rs 12 lakh, which was announced in Budget 2025. Because this rebate is applicable for FY 2025-26. But under the new tax regime, you can avail tax rebate under section 87A on net taxable income up to Rs 7 lakh for FY 2024-25. Similarly, the tax slabs announced in Budget 2025 will not be applicable while filing ITR, but the old slabs will apply.
Income Tax Slabs under New Tax Regime for FY 2024-25 (AY 2025-26): These tax slabs will help you calculate your income tax liability accurately.
| Income Tax Slab (in Rs) | Income tax rate (in percentage) |
| 0-3,00,000 | 0% |
| 3,00,001-7,00,000 | 5% |
| 7,00,001-10,00,000 | 10% |
| 10,00,001-12,00,000 | 15% |
| 12,00,001-15,00,000 | 20% |
| 15,00,001 and above | 30% |
Income tax slabs under the old tax regime: Tax slabs under the old tax regime differed based on your age. Income tax slabs for individuals below 60 years of age.
| Income Tax Slab (in Rs) | Income tax rate (in percentage) |
| 0-2,50,000 | 0% |
| 2,50,001-5,00,000 | 5% |
| 5,00,001-10,00,000 | 20% |
| 10,00,001 and above | 30% |
Slab for persons aged 60 to 80 years
| Income Tax Slab (in Rs) | Income tax rate (in percentage) |
| 0-3,00,000 | 0% |
| 3,00,001-5,00,000 | 5% |
| 5,00,001-10,00,000 | 20% |
| 10,00,001 and above | 30% |
Slabs for persons above 80 years of age
| Income Tax Slab (in Rs) | Income tax rate (in percentage) |
| 0-5,00,000 | 0% |
| 5,00,001-10,00,000 | 20% |
| 10,00,001 and above | 30% |
Things to keep in mind while filing ITR
The last date for filing ITR has been extended to 15 September 2025 for some taxpayers. This extension is for those whose accounts do not require audit. The option of the old tax regime will be available only till this date. If you want to opt for the old regime, then file your ITR by 15 September 2025. Because the new tax regime is considered as the default. If you file ITR after this date, it will be accepted only under the new tax regime.
Additional benefits in the new tax regime
Under the new tax regime, higher standard deduction can be claimed from salary income.
In Budget 2024, the standard deduction from salary has been increased to Rs 75,000.
Additionally, employer’s NPS contribution is also eligible for deduction of up to 14% under section 80CCD(2), provided you choose the new tax regime.
Thus, while filing ITR for FY 2024-25, it is necessary to follow the old tax slabs and rules, while the new rules announced in the budget for the new financial year 2025-26 will come into effect next year.
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