Tax

New Tax Regime

India's default income tax regime since FY 2023-24 — lower slabs (5%/10%/15%/20%/30%) but no 80C, 80D, HRA, or home loan deductions.

Definition

The new tax regime, made default since FY 2023-24, offers lower slab rates in exchange for foregoing most deductions. Slabs (FY 2024-25 onwards): ₹0-3L nil, ₹3-7L 5%, ₹7-10L 10%, ₹10-12L 15%, ₹12-15L 20%, above ₹15L 30%. Section 87A rebate covers tax up to ₹7L taxable income, making net tax zero up to that point.

Standard deduction of ₹75,000 applies to salaried/pensioners. NPS 80CCD(2) employer contribution remains deductible. Section 80CCH agniveers' contribution remains. Nothing else — no 80C, 80D, HRA, home loan interest (self-occupied), or LTA exemption.

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