Question 1

What are the income tax slabs for FY 2024-25 under the new regime?

Accepted Answer

Under the new tax regime for FY 2024-25: Up to ₹3 lakh – Nil, ₹3L to ₹7L – 5%, ₹7L to ₹10L – 10%, ₹10L to ₹12L – 15%, ₹12L to ₹15L – 20%, Above ₹15L – 30%. A standard deduction of ₹75,000 is available. Income up to ₹7 lakh is effectively tax-free due to rebate under section 87A.

Question 2

How is health and education cess calculated on income tax?

Accepted Answer

Health and Education Cess is calculated at 4% on the total income tax amount (after applying slab rates). For example, if your income tax is ₹1,00,000, the cess would be ₹4,000, making the total tax payable ₹1,04,000. This cess applies equally under both old and new regimes.

Question 3

Which tax regime should I choose – old or new?

Accepted Answer

Choose the old regime if your total deductions (80C, 80D, HRA, home loan interest, etc.) exceed approximately ₹3.75 lakh for higher incomes. The new regime is better if you have few deductions, as it offers lower slab rates. Use our Old vs New Regime Calculator to compare both options side by side.

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