Income tax rates and tax rates: Even as Finance Minister Nirmala Sitharaman presented the interim budget for 2024-25 on Thursday, February 1, the government has kept the tax bill and rates unchanged.

“I do not recommend any change in taxes and recommend retaining the same rates of direct and indirect taxes, including import duties,” Finance Minister Nirmala Sitharaman said in her budget speech on Thursday.

Currently, individuals whose annual income does not exceed Rs 2.5 lakh are exempt from income tax, while individuals whose annual income does not exceed Rs 5 lakh can be exempted from income tax under the new tax regime under the tax refund under Section 87A.

Currently, there are two income tax systems. Individuals can use any of them. Under the old system, income tax was exempted up to Rs 2.5 lakh, apart from this, various deductions could be claimed under Sections 80C, 80D, 80CCD etc. to reduce taxable income.

Under the new income tax regime introduced in the Budget 2021-22, no income tax will be levied on annual income up to Rs 5 lakh and no deduction will be made. However, if the annual income exceeds Rs 5,00,000, assuming it reaches Rs 5,50,000, a total income tax of Rs 3,00,000 is levied (income up to Rs 2,50,000 is exempt under both regimes). Under the new system, no deductions can be claimed.

Current income tax tables and rates under the old and new regimes:

Annual Income (Rupees) – Old System – New System

• Up to Rs 2,50,000 – N/A – N/A
• 2,50,000-5,00,000 — 5% — 5%
• 5,00,000-7,50,000 — 20% — 10%
• 7,50,000-10,00,000 — 20% — 15%
• 10,00,000-12,50,000 — 30% — 20%
• 12,50,000-15,00,000 — 30% — 25%
• 15,00,000 and above — 30% — 30%.