Income tax is a direct tax which follows a progressive slab rate, where the rate of tax increases as the taxpayer’s income rises. The Income- tax Act, 1961 provides for two tax regimes: the old regime , which allows various deductions and exemptions, and the new regime , which offers lower tax rates without exemptions. Understand India's income tax slabs for FY 2024 -25 (AY 2025-26). Compare Old and New Tax Regimes, including tax rates, deductions, rebates, and other key differences for individuals. With effect from AY 2024 -25, new tax regime has made default tax regime for Individual, HUF, AOP (not being co-operative societies), BOI or Artificial Juridical Person. However, taxpayers have the option to choose between new tax regime and old tax regime. Modifications in the Income Tax Slabs According to the announcement made under the latest budget, the revised tax slab applies to the new tax regime . The corresponding changes from April 1, 2024 , are highlighted below.
