Income Tax basic exemption limit and tax slabs for individuals & HUFs for AY 2025-26 as per Union Budget 2024-25 Proposals
The basic income tax exemption limit and tax slabs for individuals under both New Tax Regime and Old tax Regime for AY 2025-26 are as under:
(A) Optional Simplified Personal Tax Regime (New Tax Regime) under section 115BAC, and
(B) Old Tax Regime – Those not exercising option under Simplified Personal Tax Regime
A. New Tax Regime for AY 2025-26
For the AY 2025-26, there is no change in basic exemption limit under New Tax Regime. However tax structure has been revised as under:
| Upto Rs 3.00 lakhs | Nil |
| Income more than Rs. 3 lakhs up to 7 lakh | 5% |
| Income more than Rs. 7 lakhs up to 10 lakh | 10% |
| Income more than 10 lakhs upto 12 lakhs | 15% |
| Income more than 12 lakhs up to 15 lakhs | 20% |
| Income above Rs. 15 Lakhs | 30% |
Simplified Personal Tax Regime for AY 2024-25
Income Tax basic exemption limit and slabs for taxation under Simplified Personal Tax Regime for AY 2024-25 are as under:
| Upto Rs 3.00 lakhs | Nil |
| Income more than Rs. 3 lakhs up to 6 lakh | 5% |
| Income more than Rs. 6 lakhs up to 9 lakh | 10% |
| Income more than 9 lakhs upto 12 lakhs | 15% |
| Income more than 12 lakhs up to 15 lakhs | 20% |
| Income above Rs. 15 Lakhs | 30% |
The assessee opting New Tax Regime are not entitled to claim any deductions.
B. Income Tax Basic Exemption Limit and tax slabs/rates for AY 2025-26 under Old Tax Regime
No changes have been made to the existing basic exemption limit or in tax slabs/rates and will continue the same as for AY 2024-25 as under:
Currently for AY 2024-25 the Income Tax rates and slabs for Individual, HUF, association of persons, body of individuals, artificial juridical person not exercising the option under Simplified Personal Tax Regime are as under:
(i) Individual resident aged below 60 years
| Income Slabs | Tax Rates | |
|---|---|---|
| i. | Where the taxable income does not exceed Rs. 2,50,000/-. | Nil |
| ii. | Where the taxable income exceeds Rs. 2,50,000/- but does not exceed Rs. 5,00,000/-. | 5% |
| iii. | Where the taxable income exceeds Rs. 5,00,000/- but does not exceed Rs. 10,00,000/-. | Rs. 12,500/- + 20% of the amount by which the taxable income exceeds Rs. 5,00,000/-. |
| iv. | Where the taxable income exceeds Rs. 10,00,000/-. | Rs. 112,500/- + 30% of the amount by which the taxable income exceeds Rs. 10,00,000/-. |
(ii) Senior Citizen of the age of 60 years or more but below the age of 80 years
| Income Slabs | Tax Rates | |
|---|---|---|
| i. | Up to Rs. 3,00,000/- | NIL |
| ii. | Where the taxable income exceeds Rs. 3,00,000/- but does not exceed Rs. 5,00,000/- | 5% |
| iii. | Where the taxable income exceeds Rs. 5,00,000/- but does not exceed Rs. 10,00,000/- | 10,000/- + 20% of the amount by which the taxable income exceeds Rs. 5,00,000/-. |
| iv. | Where the taxable income exceeds Rs. 10,00,000/- | Rs. 110,000/- + 30% of the amount by which the taxable income exceeds Rs. 10,00,000/-. |
(iii) Super Senior Citizen individual resident of the age of 80 years or more
| Income Slabs | Tax Rates | |
|---|---|---|
| i. | Up to Rs. 5,00,000/-. | Nil |
| ii. | Where the taxable income exceeds Rs. 5,00,000/- but does not exceed Rs. 10,00,000/- | 20% of the amount by which the taxable income exceeds Rs. 5,00,000/-. |
| iii. | Where the taxable income exceeds ₹ 10,00,000/- | Rs. 100,000/- + 30% of the amount by which the taxable income exceeds Rs. 10,00,000/-. |
Surcharge on income tax
(a) based on taxable income including capital gains on equity shares u/s 111A, 112 and 112A
| Up to total income of Rs 50 lakhs | Nil |
| Taxable income exceeding Rs. 50 lacs and upto Rs. 1 crore | 10% |
| Taxable income exceeding Rs. 1 crore but not exceeding Rs. 2 crore | 15% |
| Taxable income exceeding Rs. 2 crore but not exceeding 5 crores | 25% |
| Taxable income exceeding Rs. 5 crore but not exceeding Rs. 10 crores | 37% |
| Taxable income exceeding Rs. 10 crore | 37% |
(i) The maximum rate of surcharge on tax payable on dividend income or capital gain referred to in Section 112, shall be 15%.
(ii) The surcharge rate for AOP with all members as a company, shall be capped at 15%.
For New Tax Regime however the maximum surcharge has been reduced from 37% to 25%
Health and Education Cess:
Health and Education Cess is levied at the rate of 4% on the amount of income-tax plus surcharge
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