Income Tax Calculations: How much tax will you pay on annual incomes of Rs 5.6 lakh, Rs 9.25 lakh, Rs 13.75 lakh, and Rs 19 lakh in old and new tax regimes?
Old Tax Regime vs New Tax Regime: For the Financial Year 24-25, taxpayers have the option to file their Income Tax Return (ITR) under the old tax regime and the new tax regime. Know how much income tax you need to pay in different salary slabs.
New Tax Regime vs Old Tax Regime: In the Budget 2025 speech, revised new tax regime slabs were announced. The new slabs make tax-free annual income up to Rs 12 lakh for non-salaried class individuals and up to Rs 12.75 lakh for salaried class individuals. These new slabs are also part of the New Finance Bill 2025. Once the bill becomes an Act the slabs can be applicable from April 1, 2025. However, taxpayers can avail of revised tax slabs only for income earned in the financial year 2025-26. For this financial year (FY2425), they can file their income tax only under the old tax regime and the new tax regime. In this write-up, know what your estimated income tax will be if your annual salary is Rs 5.6 lakh, Rs 9.25 lakh, Rs 13.75 lakh, and Rs 19 lakh.
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(Disclaimer: These are projections. Actual calculations may vary.)
New tax regime slabs
| Tax Slab for FY 2024-25 | Tax Rate |
| Up to Rs 3 lakh | NIL |
| Rs 3 lakh - Rs 7 lakh | 5% |
| Rs 7 lakh - Rs 10 lakh | 10% |
| Rs 10 lakh - Rs 12 lakh | 15% |
| Rs 12 lakh - Rs 15 lakh | 20% |
| Above Rs 15 lakh | 30% |
Old tax regime slabs
| Old Tax Regime | ||
| Income Slabs | Below 60 | 60 To 80 Years |
| Up to Rs 2,50,000 | NIL | NIL |
| Rs.2,50,001 - Rs.3,00,000 | 5% | NIL |
| Rs 3,00,001 - Rs 5,00,000 | 5% | 5% |
| Rs 5,00,001 to Rs 10,00,000 | 20% | 20% |
| Rs 10,00,001 and above | 30% | 30% |
Up to Rs 7 lakh income tax-free in new tax regime
After a standard deduction of Rs 75,000, an annual salary up to Rs 7 lakh is tax-free in the new tax regime.
However, in the old tax regime, the standard deduction is Rs 50,000 and the tax-free income limit is Rs 5 lakh.
Deductions under old tax slabs
The old tax regime gives tax relaxation up to Rs 1.50 lakh under Section 80C of the Income Tax Act, 1961. Taxpayers can claim a tax dedcution on the premiums paid for health insurance policies. The regime also provides tax relaxation on the interest paid on a home loan. An extra Rs 50,000 tax benefit is also provided for Tier I NPS contributions under Section 80CCD (1B).
Deductions under new tax slabs
The employer's NPS contribution up to 14 per cent of the employee's basic salary provides tax benefits. Taxpayers can also claim a deduction on leave travel allowance (LTA), entertainment/food bills, mobile phone bills (for official purpose).
New Tax Regime a default option
For new taxpayers, the new tax regime is a default option. However, they can still opt for the old tax regime.
Can one switch from new to old tax regime?
If one was following the old tax regime and switched to the new tax regime, they can still switch back to the old tax regime.
If one started filing their income tax return (ITR) under the new regime, they can move to the old tax regime.
Calculations for the story
We can calculate the income tax liability for incomes of Rs 5.6 lakh, Rs 9.25 lakh, Rs 13.75 lakh, Rs 16.10 lakh, Rs 19 lakh, and Rs 25 lakh under the old and new tax regimes. We will not take any deduction other than standard deductions applicable to both tax regimes.
Old vs new tax regime: Tax on Rs 5.6 lakh annual income
Old tax regime: Rs 15,080
New tax regime: Rs 0
Old vs new tax regime: Tax on Rs 9.25 lakh annual income
Old tax regime: Rs 91,000
New tax regime: Rs 36,400
Old vs new tax regime: Tax on Rs 13.75 lakh annual income
Old tax regime: Rs 2,18,400
New tax regime: Rs 1,04,000
Old vs new tax regime: Tax on Rs 16.10 lakh annual income
Old tax regime: Rs 2,91,720
New tax regime: Rs 1,56,520
Old vs new tax regime: Tax on Rs 19 lakh annual income
Old tax regime: Rs 3,82,200
New tax regime: Rs 2,47,000
Old vs new tax regime: Tax on Rs 25 lakh annual income
Old tax regime: Rs 5,69,400
New tax regime: Rs 4,34,200