CENTRAL GOVERNMENT EMPLOYEES - INCOME TAX
INCOME TAX RATES
ASSESSMENT YEAR 2025-2026
RELEVANT TO FINANCIAL YEAR 2024-2025
The normal tax rates applicable to an resident individual will depend on the age of the individual.
For the purpose of ascertainment of the applicable tax slab, an individual can be classified as follows:
• Individual below the age of 60 year, i.e. born on or after 01-04-1965
• Individual of the age of 60 years or above at any time during the year but below the age of 80 year, i.e. born during 01-04-1945 to 31-03-1965
• Individual of the age of 80 years or above at any time during the year, i.e. born before 01-04-1945
The Finance Act 2024 has amended the provisions of Section 115BAC w.e.f AY 2024-25 to make new tax regime the default tax regime for the assessee being an Individual, HUF, AOP (not being co-operative societies), BOI or Artificial Juridical Person. However, the eligible taxpayers have the option to opt out of new tax regime and choose to be taxed under old tax regime. The old tax regime refers to the system of income tax calculation and slabs that existed before the introduction of the new tax regime. In the old tax regime, taxpayers have the option to claim various tax deductions and exemptions.
In "non-business cases", option to choose the regime can be exercised every year directly in the ITR to be filed on or before the due date specified under section 139(1).
In case of eligible taxpayers having income from business and profession, new tax regime is default regime. If assessee wants to opt out of new tax regime, they can furnish Form-10-IEA on or before the due date u/s 139(1) for furnishing the return of income. Also, for the purpose of withdrawal of such option i.e. opting out of old tax regime shall also be done by way of furnishing Form No.10-IEA. However, option to switch to old tax regime and withdraw the option in any subsequent AY is available only once in lifetime for eligible taxpayers having income from business and profession.
I. In case of an Individual (resident or non-resident) or HUF or Association of Person or Body of Individual or any other artificial juridical person
| Old Tax Regime Slab Rate FY 2024-25 |
New Tax Regime Slab Rate FY 2024-25 |
| Net Taxable Income |
Tax Rate |
*Surcharge |
Net Taxable Income |
Tax Rate |
*Surcharge |
| Up to ₹ 2,50,000 |
Nil |
Nil |
Up to ₹ 3,00,000 |
Nil |
Nil |
| ₹ 2,50,001 to Rs 5,00,000 |
5% above ₹ 2,50,000 |
|
₹ 3,00,001 to Rs 7,00,000 |
5% above ₹ 3,00,000 |
Nil |
| |
|
|
₹ 7,00,001 to ₹ 10,00,000 |
₹ 20,000 + 10% above ₹ 7,00,000 |
Nil |
| |
|
|
₹ 10,00,001 to ₹ 12,00,000 |
₹ 50,000 + 15% above ₹ 10,00,000 |
Nil |
| ₹ 5,00,001 to ₹ 10,00,000 |
₹ 12,500 + 20% above ₹ 5,00,000 |
Nil |
₹ 12,00,001 to ₹ 15,00,000 |
₹ 1,40,000 + 30% above ₹ 15,00,000 |
Nil |
| ₹ 10,00,001 to ₹ 50,00,000 |
₹ 1,12,500 + 30% above ₹ 10,00,000 |
Nil |
₹ 15,00,001 to ₹ 50,00,000 |
₹ 1,40,000 + 30% above ₹ 15,00,000 |
Nil |
| ₹ 50,00,001 to ₹ 1,00,00,000 |
₹ 1,12,500 + 30% above ₹ 10,00,000 |
10% |
₹ 50,00,001 to ₹ 1,00,00,000 |
₹ 1,40,000 + 30% above ₹ 15,00,000 |
10% |
| ₹ 1,00,00,001 to ₹ 2,00,00,000 |
₹ 1,12,500 + 30% above ₹ 10,00,000 |
15% |
₹ 1,00,00,001 to ₹ 2,00,00,000 |
₹ 1,40,000 + 30% above ₹ 15,00,000 |
15% |
| ₹ 2,00,00,001 to ₹ 5,00,00,000 |
₹ 1,12,500 + 30% above ₹ 10,00,000 |
25% |
Above ₹ 2,00,00,000 |
₹ 1,87,500 + 30% above ₹ 15,00,000 |
25% |
| Above ₹ 5,00,00,000 |
₹ 1,12,500 + 30% above ₹ 10,00,000 |
37% |
|
|
|
Less: Rebate under Section 87A [see Note]
*Add: Surcharge and Health & Education Cess [see Note]
II. In case of a resident or non-resident senior citizen (who is 60 years or more at any time during the previous year but less than 80 years on the last day of the previous year)
| Old Tax Regime Slab Rate FY 2023-24 |
New Tax Regime Slab Rate FY 2023-24 |
| Net Taxable Income |
Tax Rate |
*Surcharge |
Net Taxable Income |
Tax Rate |
*Surcharge |
| Up to ₹ 3,00,000 |
Nil |
Nil |
Up to ₹ 3,00,000 |
Nil |
Nil |
| ₹ 3,00,001 to Rs 5,00,000 |
5% above ₹ 3,00,000 |
Nil |
₹ 3,00,001 to Rs 7,00,000 |
5% above ₹ 3,00,000 |
Nil |
| |
|
|
₹ 7,00,001 to ₹ 10,00,000 |
₹ 20,000 + 10% above ₹ 7,00,000 |
Nil |
| |
|
|
₹ 10,00,001 to ₹ 12,00,000 |
₹ 50,000 + 15% above ₹ 10,00,000 |
Nil |
| ₹ 5,00,001 to ₹ 10,00,000 |
₹ 10,000 + 20% above ₹ 5,00,000 |
Nil |
₹ 12,00,001 to ₹ 15,00,000 |
₹ 80,000 + 20% above ₹ 12,00,000 |
Nil |
| ₹ 10,00,001 to ₹ 50,00,000 |
₹ 1,12,500 + 30% above ₹ 10,00,000 |
Nil |
₹ 15,00,001 to ₹ 50,00,000 |
₹ 1,40,000 + 30% above ₹ 15,00,000 |
Nil |
| ₹ 50,00,001 to ₹ 1,00,00,000 |
₹ 1,12,500 + 30% above ₹ 10,00,000 |
10% |
₹ 50,00,001 to ₹ 1,00,00,000 |
₹ 1,40,000 + 30% above ₹ 15,00,000 |
10% |
| ₹ 1,00,00,001 to ₹ 2,00,00,000 |
₹ 1,12,500 + 30% above ₹ 10,00,000 |
15% |
₹ 1,00,00,001 to ₹ 2,00,00,000 |
₹ 1,40,000 + 30% above ₹ 15,00,000 |
15% |
| ₹ 2,00,00,001 to ₹ 5,00,00,000 |
₹ 1,12,500 + 30% above ₹ 10,00,000 |
25% |
Above ₹ 2,00,00,000 |
₹ 1,40,000 + 30% above ₹ 15,00,000 |
25% |
| Above ₹ 5,00,00,000 |
₹ 1,12,500 + 30% above ₹ 10,00,000 |
37% |
|
|
|
Less: Rebate under Section 87A [see Note]
*Add: Surcharge and Health & Education Cess [see Note]
III. In case of a resident or non-resident super senior citizen (who is 80 years or above at any time during the previous year)
| Old Tax Regime Slab Rate FY 2023-24 |
New Tax Regime Slab Rate FY 2023-24 |
| Net Taxable Income |
Tax Rate |
*Surcharge |
Taxable Income |
Tax Rate |
*Surcharge |
| Up to ₹ 5,00,000 |
Nil |
Nil |
Up to ₹ 3,00,000 |
Nil |
Nil |
| |
|
|
₹ 3,00,001 to Rs 7,00,000 |
5% above ₹ 3,00,000 |
Nil |
| |
|
|
₹ 7,00,001 to ₹ 10,00,000 |
₹ 20,000 + 10% above ₹ 7,00,000 |
Nil |
| |
|
|
₹ 10,00,001 to ₹ 12,00,000 |
₹ 50,000 + 15% above ₹ 10,00,000 |
Nil |
| ₹ 5,00,001 to ₹ 10,00,000 |
20% above ₹ 5,00,000 |
Nil |
₹ 12,00,001 to ₹ 15,00,000 |
₹ 80,000 + 20% above ₹ 12,00,000 |
Nil |
| ₹ 10,00,001 to ₹ 50,00,000 |
₹ 1,12,500 + 30% above ₹ 10,00,000 |
Nil |
₹ 15,00,001 to ₹ 50,00,000 |
₹ 1,40,000 + 30% above ₹ 15,00,000 |
Nil |
| ₹ 50,00,001 to ₹ 1,00,00,000 |
₹ 1,12,500 + 30% above ₹ 10,00,000 |
10% |
₹ 50,00,001 to ₹ 1,00,00,000 |
₹ 1,40,000 + 30% above ₹ 15,00,000 |
10% |
| ₹ 1,00,00,001 to ₹ 2,00,00,000 |
₹ 1,12,500 + 30% above ₹ 10,00,000 |
15% |
₹ 1,00,00,001 to ₹ 2,00,00,000 |
₹ 1,40,000 + 30% above ₹ 15,00,000 |
15% |
| ₹ 2,00,00,001 to ₹ 5,00,00,000 |
₹ 1,12,500 + 30% above ₹ 10,00,000 |
25% |
Above ₹ 2,00,00,000 |
₹ 1,40,000 + 30% above ₹ 15,00,000 |
25% |
| Above ₹ 5,00,00,000 |
₹ 1,12,500 + 30% above ₹ 10,00,000 |
37% |
|
|
|
*Add: Surcharge and Health & Education Cess [see Note]
*Note:
1. The enhanced surcharge of 25% & 37%, as the case may be, is not levied, from income chargeable to tax under sections 111A, 112, 112A and Dividend Income. Hence, the maximum rate of surcharge on tax payable on such incomes shall be 15%, except when the income is taxable under section 115A, 115AB, 115AC, 115ACA and 115E.
2. **Rebate u/s 87A: Resident Individuals are also eligible for a Rebate of up to 100% of income tax subject to a maximum limit depending on tax regimes as under:
|
Total Income |
Old Tax Regime |
New Tax Regime |
|
Up to Rs. 5 Lakh |
Tax rebate up to Rs.12,500 is applicable for resident individuals if the total income does not exceed Rs 5,00,000 (not applicable for NRIs |
Tax rebate up to Rs.25,000 is applicable for resident individuals if the total income does not exceed Rs 7,00,000 (not applicable for NRIs |
|
From 5 Lakhs to 7 Lakhs |
NIL |
***Note : Health & Education cess @ 4% to be paid on the amount of income tax plus Surcharge (if any) in both the regimes.
Marginal relief can be claimed from surcharge if the amount of income earned exceeding ₹ 50 lakhs, ₹ 1 crore, ₹ 2 crore or ₹ 5 crores respectively as under:
|
Net Income Range |
Marginal Relief |
|
Exceeds (Rs.) |
Does not exceed (Rs.) |
|
|
50 Lakh |
1 Crore |
Amount payable as income tax and surcharge shall not exceed the total amount payable as income tax on total income of Rs 50 Lakh by more than the amount of income that exceeds Rs 50 Lakhs |
|
1 Crore |
2 Crore |
Amount payable as income tax and surcharge shall not exceed the total amount payable as income-tax on total income of Rs. 1 crore by more than the amount of income that exceeds Rs. 1 crore |
|
2 Crore |
5 Crore |
Amount payable as income tax and surcharge shall not exceed the total amount payable as income-tax on total income of Rs. 2 crore by more than the amount of income that exceeds Rs. 2 crore |
|
5 Crore |
---- |
Amount payable as income tax and surcharge shall not exceed the total amount payable as income-tax on total income of Rs. 5 crore by more than the amount of income that exceeds Rs. 5 crore. |
Tax Benefits on Investments / Payments / Incomes
Tax deductions in the New Tax Regime
Following deductions will be available to a taxpayer opting for the New Tax Regime u/s 115BAC:
Section 24(b) – Deduction from Income from House Property on interest paid on housing loan:
|
Nature of Property
|
Purpose of loan
|
Allowable (Maximum limit)
|
|
Let Out
|
Construction or purchase of house property
|
Actual value without any limit
|
Tax deductions specified under Chapter VIA of the Income Tax Act
Deduction towards contribution made by an employer to the Pension Scheme of Central Government
| |
|
| For all categories of employers |
Deduction limit of 14% of salary |
Deduction in respect of contribution to Agnipath Scheme
|
Where an assessee, being an individual enrolled in the Agnipath Scheme and subscribing to the Agniveer Corpus Fund on or after the 1st day of November, 2022, has in the previous year paid or deposited any amount in his account in the said fund |
Allowed a deduction in the computation of total income, of the whole of the amount so paid or deposited |
|
Where the Central Government makes any contribution to the account of an assessee in the Agniveer Corpus Fund |
Allowed a deduction in the computation of total income of the whole of the amount so contributed |
Tax deductions in the Old Tax Regime
Section 24(b) – Deduction from Income from House Property on interest paid on housing loan & housing improvement loan. In case of self- occupied property, the upper limit for deduction of interest paid on housing loan is ₹ 2 lakh. Interest on loan u/s 24(b) allowable is tabulated below:
|
Nature of Property
|
When loan was taken
|
Purpose of loan
|
Allowable (Maximum limit)
|
|
Self-Occupied
|
On or after 1/04/1999
|
Construction or purchase of house property
|
₹ 2,00,000
|
|
On or after 1/04/1999
|
For Repairs of house property
|
₹ 30,000
|
|
Before 1/04/1999
|
Construction or purchase of house property
|
₹ 30,000
|
|
Before 1/04/1999
|
For Repairs of house property
|
₹ 30,000
|
|
Let Out
|
Any time
|
Construction or purchase of house property
|
Actual value without any limit
|
Tax deductions specified under Chapter VIA of the Income Tax Act
| Section 80C, 80CCC, 80CCD (1) |
| |
Deduction towards payments made to - |
|
| 80C |
- Life Insurance Premium
- Provident Fund
- Subscription to certain equity shares
- Tuition Fees
- National Savings Certificate
- Housing Loan Principal
- Other various items
|
Combined deduction limit of ₹ 1,50,000 |
| 80CCC |
Annuity plan of LIC or other insurer towards Pension Scheme
|
| 80CCD(1) |
Pension Scheme of Central Government
|
| Deduction towards payments made to Pension Scheme of Central Government, excluding deduction claimed under 80CCD (1) |
Deduction limit of ₹ 50,000
|
|
Deduction towards contribution made by an employer to the Pension Scheme of Central Government
|
|
|
If the Employer is a PSU or Others
|
Deduction limit of 10% of salary |
|
If the Employer is Central or State Government
|
Deduction limit of 14% of salary |
| Deduction in respect of contribution to Agnipath Scheme | |
|
Where an assessee, being an individual enrolled in the Agnipath Scheme and subscribing to the Agniveer Corpus Fund on or after the 1st day of November, 2022, has in the previous year paid or deposited any amount in his account in the said fund |
Allowed a deduction in the computation of total income, of the whole of the amount so paid or deposited |
|
Where the Central Government makes any contribution to the account of an assessee in the Agniveer Corpus Fund |
Allowed a deduction in the computation of total income of the whole of the amount so contributed |
|
Deduction towards payments made to Health Insurance Premium & Preventive Health check up
|
|
|
For Self / Spouse or Dependent Children
|
₹ 25,000 (₹ 50,000 if any person is a Senior Citizen) |
| ₹ 5,000 for preventive health check up, included in above limit |
|
For Parents
|
₹ 25,000 (₹50,000 if any person is a Senior Citizen) |
| ₹ 5,000 for preventive health check up, included in above limit |
|
Deduction towards Medical Expenditure incurred on a Senior Citizen, if no premium is paid on health insurance coverage
| |
|
For Self / Spouse or Dependent Children
|
Deduction limit of ₹ 50,000 |
|
For Parents
|
Deduction limit of ₹ 50,000 |
|
Deduction towards payments made towards maintenance or medical treatment of a Disabled Dependent or Paid / Deposited any amount under relevant approved scheme
|
Flat deduction of
₹ 75,000
available for a person with Disability, irrespective of expense incurred.
The deduction is
₹ 1,25,000
if the person has Severe Disability (80% or more).
|
Please note: If Taxpayer is claiming deduction u/s 80DD then its recommended to file form 10-IA also before filing of return.
Form 10IA can be filed later also however it is recommended to file form 10-IA along with return of income to avoid any inconvenience later.
|
Deduction towards payments made towards Medical treatment of Self or Dependant for specified diseases
|
Deduction limit of
₹ 40,000
(₹ 1,00,000 if Senior Citizen)
|
|
Deduction towards interest payments made on loan for higher education of Self or relative
|
|
Total amount paid towards interest on loan taken
|
|
|
Deduction towards interest payments made on loan taken for acquisition of residential house property where the loan is sanctioned between 1st April 2016 to 31st March 2017
|
|
Deduction limit of
₹ 50,000
on the interest paid on loan taken
|
|
|
Deduction available only to individuals towards interest payments made on loan taken for acquisition of residential house property for the first time where the loan is sanctioned between 1st April 2019 to 31st March 2022 & deduction should not have been claimed u/s 80EE
|
|
|
Deduction limit of
₹ 1,50,000
on the interest paid on loan taken
|
|
|
Deduction towards interest payments made on loan for purchase of Electric Vehicle where the loan is sanctioned between 1st April 2019 to 31st March 2023
|
|
Deduction limit of
₹ 1,50,000
on the interest paid on loan taken
|
|
|
Deduction towards Donations made to prescribed Funds, Charitable Institutions, etc.
Donation are eligible for deduction under the below categories
|
| Without any limit |
100% deduction |
| 50% deduction |
| Subject to qualifying limit |
100% deduction |
| 50% deduction |
Note: No deduction shall be allowed under this section in respect of donation made in cash exceeding ₹ 2000/-
|
Deduction towards rent paid for house & applicable to only those who are self-employed or for whom HRA is not part of Salary
Least of the following shall be allowed as deduction
|
|
Rent paid reduced by 10% of Total Income before this deduction
|
₹ 5,000 per month
|
25% of Total Income (excluding long term capital gains, short term capital gains under section 111A or income under section 115A or 115D)
|
Note: Form 10BA to be filled for claiming this deduction.
|
Deduction towards Donations made for Scientific Research or Rural Development
Donation are eligible for deduction under the below categories:
|
|
Research Association or University, College or other Institution for
- Scientific Research
- Social Science or Statistical Research
|
|
Association or Institution for
- Rural Development
- Conservation of Natural Resources or for Afforestation
|
|
PSU or Local Authority or an association or institution approved by the National Committee for carrying out any eligible project
|
|
Funds notified by Central Government for
- Afforestation
- Rural Development
|
|
National Urban Poverty Eradication Fund as setup and notified by Central Government
|
Note: No deduction shall be allowed under this Section in respect of donation made in cash exceeding ₹ 2000/- or if Gross Total Income includes income from Profit / Gains of Business / Profession
|
Deduction towards Donations made to Political Party or Electoral Trust
|
Deduction towards Donations made to Political Party or Electoral Trust
|
|
Deduction on interest received on saving bank accounts by Non-Senior Citizens
|
Deduction limit of
₹ 10,000/-
|
|
Deduction on interest received on deposits by Resident Senior Citizens
|
Deduction limit of
₹ 50,000/-
|
|
Deductions for a resident individual taxpayer with Disability
|
Flat ₹ 75,000 deduction for a person with Disability, irrespective of expense incurred
Flat ₹ 1,25,000 deduction for a person with Severe Disability (80% or more), irrespective of expense incurred
|
Please note: If Taxpayer is claiming deduction u/s 80U then it is recommended to file form 10-IA also before filing of return.
Form 10IA can be filed later also however it is recommended to file form 10-IA along with return of income to avoid any inconvenience later.