Income tax
- THE OLD REGIME Vs. THE NEW REGIME for FY 2024-25 and FY 2025-26
The Income-tax Act, 1961 outlines various tax slabs that determine the amount of tax payable based on
income levels. It provides for two tax regimes: the old regime and the new regime.
These changes show that the government intends to have taxpayers transition to the new regime and
eventually phase out the old one. Though the new regime is now the default tax regime, the old tax regime will continue to exist
For FY 2024-25 (AY 2025-26)
Old Regime
| Income Slabs | Income Tax Rates |
| Up to Rs.2,50,000 | Nil |
| Rs.2,50,001 - Rs.3,00,000 | 5% / Nil (Sr. Citizen) |
| Rs.3,00,001 - Rs.5,00,000 | 5% / Nil (Super Sr. Citizen) |
| Rs.5,00,001 - Rs.10,00,000 | 20% |
| Rs.10,00,001 and above | 30% |
New Regime
| Income Slabs | Income Tax Rates |
| Up to Rs. 3,00,000 | NIL |
| Rs. 3,00,001 - Rs. 7,00,000 | 5% |
| Rs. 7,00,001 - Rs.10,00,000 | 10% |
| Rs. 10,00,001 - Rs.12,00,000 | 15% |
| Rs.12,00,001 - Rs.15,00,000 | 20% |
| Above Rs.15,00,000 | 30% |
For FY 2025-26 (AY 2026-27)
Old Regime
| Income Slabs | Income Tax Rates |
| Up to Rs.2,50,000 | Nil |
| Rs.2,50,001 - Rs.3,00,000 | 5% / Nil (Sr. Citizen) |
| Rs.3,00,001 - Rs.5,00,000 | 5% / Nil (Super Sr. Citizen) |
| Rs.5,00,001 - Rs.10,00,000 | 20% |
| Rs.10,00,001 and above | 30% |
New Regime
| Income Slabs | Income Tax Rates |
| Up to Rs. 4,00,000 | NIL |
| Rs. 4,00,001 - Rs. 8,00,000 | 5% |
| Rs. 8,00,001 - Rs.12,00,000 | 10% |
| Rs. 12,00,001 - Rs.16,00,000 | 15% |
| Rs.16,00,001 - Rs.20,00,000 | 20% |
| Rs.20,00,001 - Rs.24,00,000 | 2% |
| Above Rs.24,00,000 | 30% |
The new tax regime is the default option. However, individuals can opt for the old regime, For Salaried Individuals at the time of filing their Income Tax return under Section 139, For individuals with income from business or profession - Form 10-IEA is required to be filed on or before the due date for filing the return.
Individuals, other than those with income from business or profession, can switch between the old and new tax regimes every year. However, for those with business or professional income, the option to switch can only be exercised once, and once opted, it can only be withdrawn only once, unless the individual ceases to have income from business or profession.
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CBD Belapur, Navi Mumbai India 400614
info@sparkallies.com
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