Income Tax Slabs

Tax & Deductions

India's income tax slabs define the percentage of tax applicable to different income ranges. India follows a progressive tax system -- higher income attracts higher tax rates. The new tax regime (FY 2023-24 onwards) is the default with simplified slabs and no deductions.

In detail

New Tax Regime slabs (FY 2024-25, default):nUp to Rs 3L: 0%nRs 3L-7L: 5%nRs 7L-10L: 10%nRs 10L-12L: 15%nRs 12L-15L: 20%nAbove Rs 15L: 30%nStandard deduction: Rs 75,000nSection 87A rebate: Zero tax up to Rs 7L income (after standard deduction)nnOld Tax Regime slabs (FY 2024-25, opt-in):nUp to Rs 2.5L: 0%nRs 2.5L-5L: 5%nRs 5L-10L: 20%nAbove Rs 10L: 30%nAllows deductions: 80C, 80D, HRA, home loan, etc.

Formula

Tax calculation (new regime, Rs 12L salary):nRs 12L - Rs 75K standard deduction = Rs 11.25L taxablenTax = 0 + Rs 20K (3-7L @5%) + Rs 30K (7-10L @10%) + Rs 18.75K (10-11.25L @15%) = Rs 68,750nCess: Rs 68,750 x 4% = Rs 2,750. Total tax: Rs 71,500

Real-life example

🇮🇳 India example

Arun earns Rs 10L salary. New regime: taxable = Rs 9.25L (after Rs 75K std deduction). Tax = Rs 20K + Rs 22.5K = Rs 42,500. Cess = Rs 1,700. Total: Rs 44,200 (4.42% effective rate). Old regime: deductions of Rs 1.5L (80C) + Rs 25K (80D) = taxable Rs 8.25L. Tax = Rs 12.5K + Rs 65K = Rs 77,500. New regime saves Rs 33,300 here.

Frequently asked questions

New regime vs old regime -- how do I choose? ▼

New regime wins if your deductions are less than the benefit from lower slab rates. Rule of thumb: if total deductions (80C + 80D + HRA + home loan) are less than Rs 3-4L, new regime usually saves more tax. If deductions exceed Rs 4-5L (especially with HRA in metros and home loan), old regime may save more. Use a tax calculator to compare both.