While the new tax regime is now the default, the old tax regime remains an option for those who prefer to claim various deductions and exemptions. Here’s a look at how taxation works under the old system for FY 2024-25. The Finance Act 2023 has amended the provisions of Section 115BAC w.e.f AY 2024-25 to make new tax regime the default tax regime for the assessees being Individual, HUF, AOP (not being co-operative societies), BOI or Artificial Juridical Person. However, the eligible taxpayers have the option to opt out of new tax regime and choose to be taxed under old tax regime . The old tax regime refers to the system of income tax calculation and slabs that existed before the introduction of the new tax ... Note: Tax rebate up to Rs.25,000 is applicable if the total income does not exceed Rs 7,00,000 (not applicable for NRIs). Income Tax Slabs for FY 2024-25 (AY 2025-26) Under Old Regime There were no changes made to the tax slabs under the old regime in the budget 2024. The tax slabs under the old regime are as follows: Income tax slabs for individuals aged below 60 years & HUF income tax slab rates define how much tax the individuals should pay for different income groups. The income tax slabs relaxation is the biggest relief brought in the financial year 2025-26, greatly reducing the tax liability for many. Other added benefits come from higher rebate limit and TDS threshold limits. Key Highlights Tax slab changes under the new regime for FY 2025-26: Income up to Rs. 12 lakhs made zero- tax due to an increased rebate of Rs. 60,000. Basic exemption limit extended ...
