Income earned beyond a certain limit in a financial year is subject to tax. The tax amount one has to pay depends on the income tax slabs applicable to the income. The slabs and tax treatment vary in the new tax regime and the old tax regime. A taxpayer without business income can choose one out of these two regimes every year.

The laws used to calculate income tax for FY2024-25 are currently the same as those of the previous year, as the government had presented an interim budget in February 2024 because of the Lok Sabha elections in 2024. The budget had not changed income tax laws. The full budget for FY 2024-25 is expected to be presented in July or August, 2024, after a new government is formed. Till then, the laws remain the same.

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Though the full budget is yet to be presented, one needs to know the income tax slabs currently applicable in the on-going financial year to estimate tax liability and choose the appropriate tax regime to lower the tax deducted at source (TDS). etc.