Finance Minister announced changes in individual income tax slab rates in July 2024 Budget speech. Let us look into the New Income Tax Slab Rates for FY 2024-25
Please read my latest post on the latest income tax slab rates applicable for FY 2025-26 based on the Budget 2025 speech – Budget 2025 – New Income Tax Slab Rates FY 2025-26
Refer to a detailed post on the latest changes from July 2024 Budget –
- Budget 2024 – NPS Vatsalya Scheme – Should you invest?
- Budget 2024 – Mutual Fund Taxation FY 2024-25 / AY 2025-26
- Budget 2024 – Changes In Taxation Of Gold in India
- Budget 2024 – New Capital Gain Tax Rules And Rates
- Budget 2024 – 10 BIG changes impacting personal finance
What is the difference between Gross Income and Total Income or Taxable Income?
Before jumping into what are the Latest Income Tax Slab Rates for FY 2024-25 / AY 2025-26 after Budget 2024? Are there any changes to applicable tax rates for individuals? Let us see the details., first, understand the difference between Gross Income and Total Income.
Many of us have the confusion of understanding what is Gross Income and what is Total Income or Taxable Income. Also, we calculate the income tax on Gross Income. This is completely wrong. The income tax will be chargeable on Total Income. Hence, it is very important to understand the difference.
Gross Total Income means total income under the heads of Salaries, Income from house property, Profits and gains of business or profession, Capital Gains, or income from other sources before making any deductions under Sections 80C to 80U.
Total Income or Taxable Income means Gross Total Income reduced by the amount permissible as deductions under Sec.80C to 80U.
Therefore your Total Income or Taxable Income will always be less than the Gross Total Income.
July 2024 Budget – New Income Tax Slab Rates FY 2024-25
There will be two types of tax slabs.
- For those who wish to claim IT Deductions and Exemptions.
- For those who DO NOT wish to claim IT Deductions and Exemptions.
Earlier, under the new tax regime, there were six income tax slab rates used to be there. But last year, it was reduced to five income tax slab rates. Do remember that the changes in income tax slab rates done last year apply only to the new tax regimes.
Also, earlier the standard deduction available for the salaried class and the pensioners including family pensioners is available only for the old tax regime. Last year, it was made to be available under the new tax regime.
Note that there is no change in the old tax regime. However, the slabs changed under the new tax slabs.
Earlier, the new tax regime was as below.
Up to Rs.3,00,000 – Nil
Rs.3,00,001 to Rs.6,00,000 – 5%
Rs.6,00,001 to Rs.9,00,000 – 10%
Rs.9,00,001 to Rs.12,00,000 – 15%
Rs.12,00,001 to Rs.15,00,000 – 20%
Rs.15,00,001 and above – 30%
Let me now share with you the revised New Income Tax Slab Rates For 2024-25.
Note that the standard deduction available for salaried under the old and new tax regime was earlier Rs.50,000. Now for the new tax regime, it is enhanced to Rs.75,000.
Read my full-fledged article on Budget 2024 soon..
NTR for FY 2024-25 adds upto rs 1.4 Lac only upto income of rs 15 Lac.
Please clarify
Dear Bali,
Can you elaborate your doubt?
If we have already paid tax while earning then why we need to pay tax for purchasing anything
Earning – tax
Earning after – again tax
Totally foolish
Dear Rahulraj,
I can understand your frustration. Sadly one is cateogirzed as direct tax and another as indirect tax.
I am amazed with this govt’s policies !! To get economical weaker quota of reservation it is 8 lac per annum but you earn 2.5 lac you are entitled for the Tax slab??? When everyone on earth in India already pays indirect tax of Great GST then why pay on peanuts of 2.5 lac income? why not corporates are taxed more??
Dear Rama,
Once is classified as direct and another as indirect tax. Both are the revenue streams for government.
The budget seems to have given a leeway to the middle class which is predominantly the bjp cherished vote bank. It’s good that there’s some relief from over-taxation which lefrt them them hitherto panicky ,with no savings. They can at least feel comfortable now.
Dear Karanam,
I can understand your frustration.
Is indexation available for Properties of prior to 2001
Dear Rajinder,
When you are selling matters a lot. If you sold the property before 23rd July 2024, then Indexation is available. Otherwise, NO.
Hi Basu, with new IT slabs, the rebate under sec 87a for income between 3 – 7 L will be only 20k. Then how the rebate benefit possible up to 25k.
Dear Praneet,
Sorry for not deleting the applicability of Sec.87A for Rs.7,00,001 to Rs.10,00,000 range. Under Sec.87A, the maximum benefit available is lower of income tax payable (Up to Rs.7 Lakh) or Rs.25,000. Hence, as for up to Rs.7,00,000 now it is 5%, the rebate available under Sec.87A is Rs.20,000 than Rs.25,000.
Dear Basu
You are faster than lightning in updating the IT slab.
Before FM could finish her speech you have sent this mail.
Thanks.
Dear Ravindra,
Ha ha…Thanks 🙂