Income-tax on Individuals / HUF / AOP / BOI or Artificial Judicial Persons for the financial year 2024-25, relevant to the assessment year 2025-26.
B. Default Tax Regime (also known as New Tax Scheme)
As the name of the scheme suggests that this is the default option in ITR form, you do not need to select this option separately. You have to pay tax in respect of the total income (other than income chargeable to tax at special rates) at the following concessional rates as stipulated under clause (ii) of sub-section (1A) of section 115BAC of the Income Tax Act, 1961, as amended by Finance Act, 2024 (No. 2);
| Sr No | Total Income | Rate of tax |
| 1 | Upto ₹3,00,000 | Nil |
| 2 | From ₹3,00,000 to ₹7,00,000 | 5% |
| 3 | From ₹7,00,000 to ₹10,00,000 | 10% |
| 4 | From ₹10,00,000 to ₹12,00,000 | 15% |
| 5 | From ₹12,00,000 to ₹15,00,000 | 20% |
| 6 | Above ₹15,00,000 | 30% |
Note: The tax amount as calculated above shall be increased by Health & Education Cess at the rate of 4% of such tax.
Provided that a taxpayer is not liable to pay any tax if his total income does not exceed ₹7,00,000 for the financial year 2024-25. Here, clause (a) of the first proviso to section 87A provides a rebate of tax up to a maximum of tax payable on such income.
Secondly, marginal relief is available, if the total income exceeds ₹7,00,000 and income tax payable on such income exceeds the amount of income in excess of ₹7,00,000. Clause (b) of first proviso to section 87A provides a rebate of tax equal to an amount by which such income tax payable exceeds the amount of income in excess of ₹7,00,000. In other words, wherein the income tax payable on such income exceeds the amount of income in excess of ₹7,00,000, then such amount of income in excess of ₹7,00,000 would be the tax payable.
Deductions & Exemptions allowed under Default Tax Regime