Classification: Public

FAQ

1. What are the tax slabs under the old and New Tax regime for F.Y 24-25?
Tax Slab under Old Regime: -

Net income range Income-Tax rate

Up to INR 2,50000 Nil
INR 2,50,001- 5,00,000 5%
INR 5,00,001- 10,00,000 20%
Above INR 10,00,000 30%

Surcharge Slabs under Old Regime: -

Net income range Income-Tax rate

Up to INR 50,00,000 Nil
INR 50,00,000 – 1,00,00,000 10%
INR 1,00,00,000 – 2,00,00,000 15%
INR 2,00,00,000 – 5,00,00,000 25%
Above INR 5,00,00,000 37%

Tax Slab under New Regime

Net income range Income-Tax rate

Nil
Up to INR 3,00,000
INR 3,00,000 to 6,00,000 5%
INR 6,00,000 to 9,00,000 10%
INR 9,00,000 to 12,00,000 15%
INR 12,00,000 to 15,00,000 20%
More than INR 15,00,000 30%

The tax calculated based on such rates will be subject to surcharge as applicable and health and
education cess @ 4%.

New tax regime changes for F.Y 24-25

 Surcharge on annual income above INR 5 Crore is 25%

 The tax rebate limit raised from INR 5 to 7 Lakhs.

Old and New tax regime changes for F.Y 24-25

Leave encashment exemption limit is increased to INR 25 Lakhs.

2. What deduction is allowed under the new tax regime?

Standard deduction of INR 50,000.
 Classification: Public

3. Is it mandatory to give the declaration for Tax Regime?

Yes. Basis circular No.04/2023 CBDT, effective April 2023 it is mandatory for all employees to select
tax regime. (New/old)
If you fail to declare the same, we will consider a new tax regime as default in line with the circular.
There will be no carry forward of tax regime like previous years.

4. Can I change my declaration of Tax regime in between the financial year?

No, an employee can only give the declaration of Tax regime once a year on ESS and is not allowed to
change the same in between the financial year.

5. Can I change my Tax regime at the time of Filling ITR?

Yes, it is allowed to change the tax regime at the time of filing Income Tax Return. One can change the
Tax regime at the time of filing ITR and claim refund in case of excess tax deduction and will have to
pay the tax in case of short deduction of tax. This will have to be done by the employee at an individual
level.

6. Is PF, VPF deducted from salary allowed under deduction if opted for New Tax regime?
PF & VPF deducted from salary will not be allowed as deduction under Chapter VI A in the New tax

regime.

7. Can I claim deduction for interest on house property under New Regime?
The new tax regime does not allow the deduction of the home loan interest paid for a self-occupied
house property.

8. What will be the impact on FBP under the New Tax Regime?
In case, if New Tax Regime is selected then in that case an employee will not be able to claim FBP.

9. Can I claim a deduction of additional INR 50,000 for NPS (National pension Scheme) under
Section 80CCD (1B) under New Tax regime?

It is not allowed to claim deduction of additional INR 50,000 under Section 80CCD (1B) for NPS under
New Tax regime but the same can be claimed under Old Tax regime. Please fill in the category
“Contribution to pension scheme of Central Government” on ESS.

10. Would employees get exemption of Leave Encashment & Gratuity, on retirement under New
Tax Regime?

Yes, employees will get benefit of exemption for Leave Encashment & Gratuity at the time of
retirement under both the tax regimes.

11. Where can I get comparison of Tax Liability as per Old Tax Regime & New Tax Regime. Link
for income tax calculator for F Y 24-25 as given below. Please select assessment year 2024-25.

https://eportal.incometax.gov.in/iec/foservices/#/TaxCalc/calculator