Income Tax Under the New Regime (FY 2024-25)
The New Tax Regime offers lower slab rates but removes most deductions. Income up to ₹3 lakh is tax-free, with rates rising progressively to 30% above ₹15 lakh.
A Section 87A rebate makes income up to ₹7 lakh effectively tax-free. A 4% Health and Education Cess is added on the calculated tax. A standard deduction of ₹50,000 applies to salaried individuals.
Frequently Asked Questions
Is income up to 7 lakh tax-free?
Yes, under the New Regime, the Section 87A rebate makes taxable income up to ₹7 lakh effectively tax-free.
What is the health and education cess?
A 4% cess is levied on the total income tax payable, funding health and education initiatives.