FY 2024-25 slabs (both regimes)
New regime (default)
| Slab | Rate |
|---|---|
| Up to ₹3,00,000 | Nil |
| ₹3,00,001 – ₹7,00,000 | 5% |
| ₹7,00,001 – ₹10,00,000 | 10% |
| ₹10,00,001 – ₹12,00,000 | 15% |
| ₹12,00,001 – ₹15,00,000 | 20% |
| Above ₹15,00,000 | 30% |
Standard deduction ₹75,000. Rebate u/s 87A: full rebate up to ₹7 lakh taxable income (zero tax).
Old regime
| Slab | Rate |
|---|---|
| Up to ₹2,50,000 | Nil |
| ₹2,50,001 – ₹5,00,000 | 5% |
| ₹5,00,001 – ₹10,00,000 | 20% |
| Above ₹10,00,000 | 30% |
Standard deduction ₹50,000. All deductions (80C, 80D, HRA, home-loan interest, NPS) available. Rebate u/s 87A up to ₹5 lakh.
Cess and surcharge
4% health-and-education cess on the calculated tax in both regimes. Surcharge applies above ₹50 lakh income — 10% / 15% / 25% / 37% at the ₹50L / ₹1Cr / ₹2Cr / ₹5Cr thresholds. Note: under the new regime the maximum surcharge is capped at 25% (the 37% rate doesn't apply).
FAQ
Which regime is better?
Roughly, if your total deductions exceed ₹3.75 lakh — the gap between the two standard deductions plus all your old-regime-only deductions — the old regime usually wins. Below that, the new regime's flatter slabs and ₹75,000 standard deduction win.
Can I switch every year?
Salaried individuals: yes — choose at the time of filing each year. Business / professional income: you can switch to the old regime by filing Form 10-IEA, but switching back to new is permitted only once.
Are NPS contributions deductible in the new regime?
Only employer-contribution u/s 80CCD(2) — capped at 14% of salary. Self-contribution u/s 80CCD(1) and 80CCD(1B) are not allowed in the new regime.