Income Tax Slab Rates & Special Tax Rates (LTCG, STCG, Lottery, Crypto) – FY 2024-25 (AY 2025-26)

The Indian Income Tax system allows individuals and HUFs to choose between two tax regimes:

1. Old Regime – with various deductions and exemptions
2. New Regime (u/s 115BAC) – with lower slab rates but minimal deductions

For income tax return for FY 2024-25, these are the tax slabs that apply to the income earned between 1st April 2024 and 31st March 2025. The due date for filing your return is 15th September for non-audit cases and 31st October for audit cases.

Slab Rates – FY 2024-25

A. Old Tax Regime

🧓 Senior Citizens (60–80 years): Basic exemption ₹3 lakh
👵 Super Senior Citizens (80+ years): Basic exemption ₹5 lakh

• Standard Deduction: ₹50,000
• Rebate u/s 87A (Allowed only for Resident Individuals): Full rebate if taxable income ≤ ₹5 lakh (max ₹12,500)
• Old Tax Regime give benefits to avail exemptions and Deductions

B. New Tax Regime (u/s 115BAC – Default regime)

• Standard Deduction: ₹75,000 (applicable from FY 2024-25 onwards)
• Rebate u/s 87A (Allowed only for Resident Individuals): Full rebate if taxable income ≤ ₹7 lakh
• The marginal relief is available on income above 7 Lakhs
• The rebate is not available for income that is taxed at special rates (e.g., capital gains under section 112A).
• Very Limited Deductions and exemptions are available in new regime: 1) Standard Deduction on Salary Rs.75000 2) Transport allowance for Handicapped Persons 3) Standard Deduction on Family pension upto Rs.25000 4) Employer contribution in NPS u/s 80ccd(2), 5) Agniveer Corpus fund section 80CCH 6) Housing loan interest Deduction on Let our Property only

Health & Education Cess and Surcharge

• Health & Education Cess: 4% on income tax + surcharge in both regimes

Marginal Relief on surcharge

To avoid excess tax liability due to sudden surcharge jumps, marginal relief is available:

✅ This ensures a fair tax burden across income brackets.

Opt in or Opt out – New Tax Regime?

To opt in or opt out new regime form 10IEA is to be filled in case you are filing ITR 3 or 4

📊 Capital Gains Tax Rates

Long-Term Capital Gains and Short-Term Capital Gains

✅ Before 23/07/2024

Following are the tax rates for capital gains arising in case the transfers happened before 23/07/2024, Indexation benefit is also available:

✅ From 23/07/2024

For the transfers happened on or after 23 July 2024, tax on capital gains are to be taxed as follows:

📈 Tax Rates on Equity and Debt Mutual Funds

Gains made on the sale of debt funds and equity funds are treated differently. Any fund that invests heavily in equities (more than 65% of their total portfolio) is called an equity fund.

📌 Notes:

• Note *: 10% tax without indexation with an exemption limit of ₹1,25,000 is applicable when the transfer happens on or before 23/07/2024. The tax of 12.5% without indexation is applicable for transfers on or after 23/07/2024.
• Note **: Irrespective of the holding period, with effect from 01/04/2023, the capital gains on sale of Debt Mutual Funds, Market Linked Debentures (MLDs), and Unlisted Bonds or Debentures are always considered short-term and taxed at normal slab rates.

📊 Capital Gains Tax Comparison – Before & After 23 July 2024

Income from Lottery, Gambling, Betting, Card Games, Online Gaming

🚫 No deduction under Chapter VI-A, no rebate u/s 87A applicable on these incomes.

📊 Tax Provisions on VDAs

📌 What is a Virtual Digital Asset (VDA)?

As per Section 2(47A) of the Income Tax Act, VDAs include:

• Cryptocurrencies (like Bitcoin, Ethereum, etc.)
• Non-Fungible Tokens (NFTs)
• Any other digital asset as notified by the government

📊 Tax Rules on VDA:

🔍 Example

• You buy Bitcoin for ₹1,00,000 and sell it for ₹1,50,000.
  • Gain = ₹50,000
  • Tax @30% = ₹15,000 (plus surcharge & cess)
  • No benefit of slab, deductions, or adjusting any loss

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