New Income Tax Slab: This will be the tax slab for FY 2024-25

New Income Tax Slab: Income above a certain threshold in a financial year is taxable. The tax amount depends on your income and the income tax slab applicable on it. New Income Tax Slab: This will be the tax slab for FY 2024-25, assessment year will be 2025-26.

Income above a certain threshold in a financial year is taxable. The tax amount depends on your income and the income tax slab applicable on it. Taxpayers can choose any regime from new tax slab and old tax regime. A salaried person can choose any of these two.

The rules used for income tax calculation for the financial year 2024-25 are same as last year. The government presented the interim budget in February 2024 due to Lok Sabha elections in 2024. No changes were made to income tax laws in the budget. The full budget for the financial year 2024-25 is expected to be presented in July or August 2024 after the formation of the new government. Till then the laws will remain the same.

Step to use Income Tax Calculator for FY 2024-25 (AY 2025-26):

Following are the steps to use the tax calculator:

1. Select the financial year for which you want to calculate your taxes.
2. Select your age accordingly. Tax liability in India differs based on age groups.
3. Click on ‘Go to next step’
4. Enter your taxable salary i.e. salary after deducting various deductions like HRA, LTA etc. (If you want to know your tax liability under old tax slabs)

Otherwise, enter your salary i.e. salary without availing exemptions like HRA, LTA, Professional Tax etc. (If you want to know your tax liability under new tax slabs)

5. Along with taxable salary, you have to enter other details like interest income, rental income, interest paid on home loan for rent and interest paid on loan for self occupied property.
6. for income from digital assets, enter net income (sale consideration less cost of acquisition), such income is taxed at 30% plus applicable surcharge and cess.
7. Again click on ‘Go to next step’.
8. In case, you want to calculate your taxes under old tax slabs, you need to enter your tax saving investments under section 80C, 80D, 80G, 80E and 80TTA.
9. Click on ‘Calculate’ to get your tax liability. You will also be able to see the comparison of your pre-budget and post-budget tax liability (old tax slabs and new tax slabs).

Note: If the field is not applicable, you can enter “0”.

You may also receive your tax calculation in your mail.

How to calculate income tax? (see example).

Also Read: New Rules: These 6 Important Rules Change From 1st June

Calculation of income tax for salaried employees:

Income from salary is the sum of basic pay + HRA + special allowance + transport allowance + any other allowance. Certain elements of your salary are exempt from tax, such as reimbursement of telephone bills, holiday travel allowance. If you receive HRA and live in rented accommodation, you can claim exemption on HRA. Calculate the exempt portion of HRA using this HRA calculator.

On top of these exemptions, a standard deduction of Rs 40,000 was introduced in Budget 2018. It has been increased to Rs 50,000 in Budget 2019 and in Budget 2023, a standard deduction of Rs 50,000 is available under the new regime. If you opt for the new tax regime, these exemptions will not be available to you.

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(Optional) Let us understand the calculation of income tax under the current tax slabs and the new tax slabs through an example. Neha gets a basic salary of Rs 1,00,000 per month. HRA 50,000 Rs. Special Allowance Rs.21,000 per month. 20,000 per annum LTA of Rs. Neha lives in Delhi paying a rent of Rs 40,000.