What Is the Threshold of Gross Income for High Earners for Tax Purposes in 2025?
The high earner income threshold for tax in India for the financial year 2024–25 (AY 2025–26) begins at a gross total income of ₹15 lakh or more. Under the new tax regime, this is the topmost slab where individuals start paying the highest marginal tax rate.
Let’s break it down.
Key Income Tax Slabs for FY 2024–25 (New Tax Regime)
| Gross Total Income (₹) | Tax Rate |
|---|---|
| Up to ₹3,00,000 | Nil |
| ₹3,00,001 – ₹6,00,000 | 5% |
| ₹6,00,001 – ₹9,00,000 | 10% |
| ₹9,00,001 – ₹12,00,000 | 15% |
| ₹12,00,001 – ₹15,00,000 | 20% |
| Above ₹15,00,000 | 30% |
🔹 Note: These slabs apply to individuals who opt for the default new tax regime under Section 115BAC.
Who Is Considered a “High Earner”?
A high earner, for taxation purposes in India, is typically someone with:
- Gross total income exceeding ₹15 lakh
- Liable to surcharge if income exceeds specified limits
- Ineligible for certain exemptions/deductions under new regime
Surcharge for High Income Individuals (AY 2025–26)
| Total Income (₹) | Surcharge Rate |
|---|---|
| Above ₹50 lakh – ₹1 crore | 10% |
| ₹1 crore – ₹2 crore | 15% |
| ₹2 crore – ₹5 crore | 25% |
| Above ₹5 crore | 25% (Capped) |
📝 Important: Under the new regime, maximum surcharge is capped at 25%, unlike earlier where it was 37%.
Example Calculation for High Earners
If your gross income is ₹25 lakh, your tax liability under the new regime:
- Tax as per slab: ₹3,75,000
- Surcharge (15% on tax): ₹56,250
- Health & Education Cess (4%): ₹17,250
- Total Tax Payable: ₹4,48,500
Legal Reference
- Finance Act, 2023 amended Section 115BAC making the new regime default from AY 2024–25 onwards.
- CBDT Circular No. 4/2023 clarified surcharge and rebate applicability.
- Budget 2023 Speech (MoF): “We propose to reduce the highest surcharge from 37% to 25% in the new tax regime.”
📖 See full tax table – incometax.gov.in
Expert View
🔍 “For salaried individuals nearing ₹15 lakh income, smart salary structuring or exploring capital gains may help optimize taxes under the new regime.” – CA Rahul Iyer, Tax Consultant
FAQs
Q1. Is ₹15 lakh income taxable under the old regime too?
Yes, but the old regime is now optional. It allows deductions under 80C, HRA, etc., but fewer people opt for it due to complexity.
Q2. Can I reduce my tax if I earn more than ₹15 lakh?
Yes, via eligible exemptions (only under old regime) or by exploring alternate income like capital gains (with lower rates).
Q3. What if my income crosses ₹50 lakh?
A surcharge of 10% kicks in, increasing your effective tax rate.
Summary
The high earner income threshold for tax in India for FY 2024–25 starts at ₹15 lakh under the new regime. Income above this is taxed at 30%, with additional surcharge applicable if income exceeds ₹50 lakh. Deductions are limited under this regime.