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Income Tax Slabs FY 2023-24 & AY 2024-25 (New & Old Regime Tax Rates)

Tax Rebate Information

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Tax rebate up to Rs.12,500 is available if the total income is up to Rs 5,00,000 under the new income tax slab. This rebate is not applicable for NRIs. When considering the income tax slab 2023-24, it’s important to understand the differences between the new income tax slab and the old income tax slab. The income tax new slab offers certain benefits that might differ from the old income tax slab.

Income Tax Rates for FY 2023-24 (AY 2024-25)

Income SlabsIncome Tax Rates
Up to Rs 3,00,000Nil
Rs 3,00,000 to 6,00,0005% on income exceeding Rs 3,00,000
Rs 6,00,000 to 9,00,000Rs 15,000 + 10% on income exceeding Rs 6,00,000
Rs 9,00,000 to 12,00,000Rs 45,000 + 15% on income exceeding Rs 9,00,000
Rs 12,00,000 to 15,00,000Rs 90,000 + 20% on income exceeding Rs 12,00,000
Above Rs 15,00,000Rs 1,50,000 + 30% on income exceeding Rs 15,00,000
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Major Changes in Filing Income Tax Returns

  1. FY 2022-23: Default regime was the Old tax regime. Form 10-IE was required for the New tax regime.
  2. FY 2023-24: Default regime is now the New tax regime. To file under the Old regime, you must do so by the due date.
2023-24, new , old income tax slab, income tax new slab:

Tax Brackets for 2023

Tax RateSingleMarried Filing JointlyMarried Filing SeparatelyHead of Household
10%$0 to $11,000$0 to $22,000$0 to $11,000$0 to $15,700
12%$11,001 to $44,725$22,001 to $89,450$11,001 to $44,725$15,701 to $59,850
22%$44,726 to $95,375$89,451 to $190,750$44,726 to $95,375$59,851 to $95,350
24%$95,376 to $182,100$190,751 to $364,200$95,376 to $182,100$95,351 to $182,100
32%$182,101 to $231,250$364,201 to $462,500$182,101 to $231,250$182,101 to $231,250
35%$231,251 to $578,125$462,501 to $693,750$231,251 to $346,875$231,251 to $578,100
37%$578,126 or more$693,751 or more$346,876 or more$578,101 or more

How to Calculate Income Tax from Income Tax Slabs?

Illustration 1: Rohit has a total taxable income of Rs 8,00,000. This income has been calculated by including income from all sources, such as salary, rental income, and interest income. Deductions under section 80 have also been reduced. Rohit wants to know his tax dues as per the old regime for FY 2023-24 (AY 2024-2025).

Rohit has a taxable income of Rs 8,00,000.

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Income Tax SlabsTax RateTax Amount
Income up to Rs 2,50,000No tax
Rs 2,50,000 – 5,00,0005% on Rs 2,50,000Rs 12,500
Rs 5,00,000 – 10,00,00020% on Rs 3,00,000Rs 60,000
Income over Rs 10,00,00030%
Total TaxRs 72,500
Cess (4%)Rs 2,900
Total Tax PayableRs 75,400

Note: Rohit is an individual taxpayer with an exemption of Rs 2,50,000.

Important Points for the New Tax Regime

  • The same tax rates apply to Individuals, Sen-ior Citizens, and Super Se-nior Citizens.
  • Individuals with a net taxable income of up to Rs 7 lakh are eligible for a tax rebate under Section 87A, making the tax liability NIL.
2023-24, new , old income tax slab, income tax new slab:

Surcharge Rates

  • 10% of Income tax if income > Rs.50 lakh and < Rs.1 crore
  • 15% of Income tax if income > Rs.1 crore and < Rs.2 crore
  • 25% of Income tax if income > Rs.2 crore and < Rs.5 crore
  • 37% of Income tax if income > Rs.5 crore

Note: The highest surcharge rate has been reduced to 25% from 37% from 1st April 2023.

Tax Brackets for 2023: Single Filers

Tax RateTaxable Income BracketTax Owed
10%$0 to $11,00010% of taxable income
12%$11,001 to $44,725$1,100 plus 12% of the amount over $11,000
22%$44,726 to $95,375$5,147 plus 22% of the amount over $44,725
24%$95,376 to $182,100$16,290 plus 24% of the amount over $95,375
32%$182,101 to $231,250$37,104 plus 32% of the amount over $182,100
35%$231,251 to $578,125$52,832 plus 35% of the amount over $231,250
37%$578,126 or more$174,238.25 plus 37% of the amount over $578,125

Additional Information

  • Health and Education Cess at 4% is added to the income tax liability.

Consequences of Late Filing

  • Missing the due date means you must opt for the New Tax regime and forgo certain exemptions and deductions of the Old regime.

Read More: Revenue Tax Estimator – Ascertain Your Fiscal Commitments for FY 2024-25| Utilize Our Online Estimate Tool

Tax Brackets for 2023: Married Filing Jointly

Tax RateTaxable Income BracketTaxes Owed
10%$0 to $22,00010% of taxable income
12%$22,001 to $89,450$2,200 plus 12% of the amount over $22,000
22%$89,451 to $190,750$10,294 plus 22% of the amount over $89,450
24%$190,751 to $364,200$32,580 plus 24% of the amount over $190,750
32%$364,201 to $462,500$74,208 plus 32% of the amount over $364,200
35%$462,501 to $693,750$105,664 plus 35% of the amount over $462,500
37%$693,751 or more$186,601.50 plus 37% of the amount over $693,750

Old vs. New Tax Regime

  • New Tax Regime: Beneficial for middle-class taxpayers with taxable income up to Rs 15 lakh and for those making low investments.
  • Old Tax Regime: Better for high-income earners and those with substantial investments in tax-saving instruments.

Choosing Between Old and New Regime

  • Salary or TDS Income: Select the tax regime at the start of the financial year.
  • Business or Professional Income: Choose once in a lifetime.

Income Tax Rates for Domestic Companies FY 2023-24

ParticularsOld Regime Tax RatesNew Regime Tax Rates
Section 115BAB: Registered on/after Oct 1, 2019; manufacturing before Mar 31, 202415%
Section 115BAA: No specified deductions, incentives, exemptions, or additional depreciation22%
Section 115BA: Registered on/after Mar 1, 2016; manufacturing; no specified deductions25%
Turnover < Rs 400 crore in the previous year25%25%
Any other domestic company30%30%

Additional Health and Education Cess at 4% applies.

Income Tax for Partnership Firms or LLPs

  • Tax Rate: 30%
  • Surcharge: 12% on income over Rs 1 crore
  • Cess: 4%

Historical Income Tax Slab Rates for Individuals and Companies

FY 2019-20 to FY 2022-23

Income Tax SlabTax Rates for Individuals (Below 60 Years)
Up to ₹2,50,000Nil
₹2,50,001 to ₹5,00,0005%
₹5,00,001 to ₹10,00,00020%
Above ₹10,00,00030%
Income Tax SlabTax Rates for Senior Citizens (60-80 Years)
Up to ₹3,00,000Nil
₹3,00,001 to ₹5,00,0005%
₹5,00,001 to ₹10,00,00020%
Above ₹10,00,00030%
Income Tax SlabTax Rates for Super Senior Citizens (80+ Years)
Up to ₹5,00,000Nil
₹5,00,001 to ₹10,00,00020%
Above ₹10,00,00030%

Additional 4% Health & Education Cess applies.

2023-24, new , old income tax slab, income tax new slab:

FY 2018-19

Income Tax SlabTax Rates for Individuals (Below 60 Years)
Up to Rs 2,50,000No tax
Rs 2,50,001 to Rs 5,00,0005%
Rs 5,00,001 to Rs 10,00,00020%
Above Rs 10,00,00030%

FY 2017-18

Income Tax SlabTax Rates for Individuals (Below 60 Years)
Up to Rs 2,50,000No tax
Rs 2,50,001 to Rs 5,00,0005%
Rs 5,00,001 to Rs 10,00,00020%
Above Rs 10,00,00030%

Additional 4% Health & Education Cess applies.

Income Tax Slabs for Domestic Companies FY 2017-18

Turnover ParticularsTax Rate
Gross turnover up to Rs 250 crore25%
Gross turnover exceeding Rs 250 crore30%

How to Calculate Income Tax from Income Tax Slabs

Calculating Rohit’s Tax

Rohit has a total taxable income of Rs 8,00,000 for FY 2023-24 (AY 2024-25). This includes all his earnings from various sources like salary, rental income, and interest income, after applying deductions under Section 80. Rohit wants to determine his tax liability according to the old tax regime.

Read More: PNB FD Rates 2023: Current Interest Rate 5.75%, Punjab National Bank Fixed Deposit Rates

Tax Calculation Breakdown

Income Tax SlabTax RateTax Amount
Income up to Rs 2,50,000No tax
Income from Rs 2,50,000 to 5,00,0005% on Rs 2,50,000Rs 12,500
Income from Rs 5,00,000 to 10,00,00020% on Rs 3,00,000Rs 60,000
Income over Rs 10,00,00030%
Total TaxRs 72,500
Cess (4%)Rs 2,900
Total Tax PayableRs 75,400

Notes:

  • Rohit is an individual taxpayer with an income tax exemption limit of Rs 2,50,000.
  • For se-nior citizens, the exemption limit is Rs 3,00,000, and for super se-nior citizens, it is Rs 5,00,000.

Read More: SBI FD Interest Rates 2023: Revised FD Rates Up to 7.60%


Income Tax Slabs in FY 2023-24 (AY 2024-25) for HUF and Individuals

As per the Budget 2023 announcement, the new income tax slab rates for FY 2023-24 for individuals and HUF are as follows:

Annual Taxable IncomeNew Tax RegimeOld Tax Regime
Up to Rs. 2.5 lakhExemptExempt
Over Rs. 2.5 lakh to Rs. 3 lakhExempt5%
Over Rs. 3 lakh to Rs. 5 lakh5%5%
Over Rs. 5 lakh to Rs. 6 lakh5%20%
Over Rs. 6 lakh to Rs. 9 lakh10%20%
Over Rs. 9 lakh to Rs. 10 lakh15%20%
Over Rs. 10 lakh to Rs. 12 lakh15%30%
Over Rs. 12 lakh to Rs. 15 lakh20%30%
Above Rs. 15 lakh30%30%


Income Tax Slab for Super Se-nior Citizens in AY 2024-25 (FY 2023-24)

According to the Income Tax Act, 1961, taxpayers above 80 years of age are considered super se-nior citizens and benefit from a higher exemption limit of Rs. 5 lakh under the old tax regime. This benefit is not available for those opting for the new tax regime. The applicable income tax slabs for FY 2023-24 (AY 2024-25) under both regimes are as follows tax slab 2023-24:

Annual Taxable IncomeNew Tax RegimeOld Tax Regime
Up to Rs. 3 lakhExemptExempt
Over Rs. 3 lakh to Rs. 5 lakh5%Exempt
Over Rs. 5 lakh to Rs. 6 lakh5%20%
Over Rs. 6 lakh to Rs. 9 lakh10%20%
Over Rs. 9 lakh to Rs. 10 lakh15%20%
Over Rs. 10 lakh to Rs. 12 lakh15%30%
Over Rs. 12 lakh to Rs. 15 lakh20%30%
Above Rs. 15 lakh30%30%

Super se-nior citizens can choose between the new tax regime and the old tax regime. The old tax regime offers a higher exemption limit of Rs. 5 lakh, unlike the new regime, which offers the same exemption limit and tax rates to all eligible taxpayers. Additionally, the new tax regime does not provide common deductions and exemptions such as Section 80C, Section 80D, and Section 24.

Income Tax Slabs & Rates for Senior Citizens in AY 2024-25 (FY 2023-24)

Taxpayers aged between 60 years and less than 80 years are considered se-nior citizens under the Income Tax Act, 1961, and have a higher exemption limit under the old tax regime compared to those under 60. This benefit is not available under the new tax regime. Below are the income tax slabs and rates for se-nior citizens for FY tax slab 2023-24:

Annual Taxable IncomeNew Tax RegimeOld Tax Regime
Up to Rs. 3 lakhExemptExempt
Over Rs. 3 lakh to Rs. 5 lakh5%5%
Over Rs. 5 lakh to Rs. 6 lakh5%20%
Over Rs. 6 lakh to Rs. 9 lakh10%20%
Over Rs. 9 lakh to Rs. 10 lakh15%20%
Over Rs. 10 lakh to Rs. 12 lakh15%30%
Over Rs. 12 lakh to Rs. 15 lakh20%30%
Above Rs. 15 lakh30%30%
How much tax is taken from salary in India?

Tax is taken depending on the amount, like up to Rs. 3,00,000 is zero, from Rs. 3,00,000 to Rs. 6,00,000 is 5%, from Rs. 6,00,000 to Rs. 9,00,000 is 10%, from Rs. 9,00,000 to Rs. 12,00,000 is 15%, from Rs. 12,00,000 to Rs. 15,00,000 is 20%, and over Rs. 15,00,000 is 20%.

What is 80D income tax?

What is Section 80D of the Income Tax Act? Section 80D of the Income Tax Act, 1961 gives tax deductions of up to ₹25,000 on health insurance premiums paid in a year. The tax deduction limit goes up to ₹50,000 per year for se-nior citizens who are 60 years old and older.

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How do you calculate taxable income?

To calculate federal taxable income for individual filers, start by subtracting all income from “above the line” deductions and exemptions. This includes certain retirement plan contributions, higher education expenses, student loan interest, and alimony payments, among others.

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