The income tax slabs are different under the old and the new tax regimes. Further, the slab rates under the old tax regime are divided into three categories
- Indian Residents aged < 60 years + All the non-residents
- 60 to 80 years: Resident Senior citizens
- More than 80 years: Resident Super senior citizens
Interim Budget 2024-2025 Updates:
No changes were made in direct taxes in the Interim Budget 2024-2025.
What Is an Income Tax Slab?
In India, the Income Tax applies to individuals based on a slab system, where different tax rates are assigned to different income ranges. As the person's income increases, the tax rates also increase. This type of taxation allows for a fair and progressive tax system in the country. The income tax slabs are revised periodically, typically during each budget. These slab rates vary for different groups of taxpayers.
Let us take a look at all the slab rates applicable for FY 2023-24(AY 2024-25).
For Old Regime, a tax rebate up to Rs.12,500 is applicable if the total income does not exceed Rs 5,00,000 (not applicable for NRIs)
NOTE:
- Income tax exemption limit is
- up to Rs 2,50,000 for Individuals, HUF below 60 years aged and NRIs.
- up to Rs 3,00,000 for senior citizens aged above 60 years but less than 80 years.
- up to Rs 5,00,000 for super senior citizens aged above 80 years.
- Surcharge and cess will be applicable over and above the tax rates
However, under the new tax regime rebate is up to Rs.25000 is applicable if the total income does not exceed Rs 7,00,000. (not applicable for NRIs)
* Tax rebate equivalent to an amount, tax payable is when the total income exceeds Rs 7,00,000. (not applicable for NRIs)
NOTE:
- Income tax exemption limit is up to Rs 3,00,000 for Individuals, HUF opting for the new regime.
- Surcharge and cess will be applicable over and above the tax rates
Comparison of tax rates under New tax regime & Old tax regime
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Old Tax Regime (FY 2022-23 and FY 2023-24)
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New Tax Regime
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Income Slabs
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Age < 60 years & NRIs
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Age of 60 Years to 80 years
|
Age above 80 Years
|
FY 2022-23
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FY 2023-24
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Up to ₹2,50,000
|
NIL
|
NIL
|
NIL
|
NIL
|
NIL
|
|
₹2,50,001 - ₹3,00,000
|
5%
|
NIL
|
NIL
|
5%
|
NIL
|
|
₹3,00,001 - ₹5,00,000
|
5%
|
5%
|
NIL
|
5%
|
5%
|
|
₹5,00,001 - ₹6,00,000
|
20%
|
20%
|
20%
|
10%
|
5%
|
|
₹6,00,001 - ₹7,50,000
|
20%
|
20%
|
20%
|
10%
|
10%
|
|
₹7,50,001 - ₹9,00,000
|
20%
|
20%
|
20%
|
15%
|
10%
|
|
₹9,00,001 - ₹10,00,000
|
20%
|
20%
|
20%
|
15%
|
15%
|
|
₹10,00,001 - ₹12,00,000
|
30%
|
30%
|
30%
|
20%
|
15%
|
|
₹12,00,001 - ₹12,50,000
|
30%
|
30%
|
30%
|
20%
|
20%
|
|
₹12,50,001 - ₹15,00,000
|
30%
|
30%
|
30%
|
25%
|
20%
|
|
₹15,00,000 and above
|
30%
|
30%
|
30%
|
30%
|
30%
|
Income Tax Slab Rates For FY 2022-23 (AY 2023-24)
a. New Tax regime until 31st March 2023
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Income Slabs
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Individuals (for all age categories)
|
|
Up to Rs 2,50,000
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Nil
|
|
Rs 2,50,001 - Rs 5,00,000*
|
5%
|
|
Rs 5,00,001 - Rs 7,50,000
|
10%
|
|
Rs 7,50,001 - Rs 10,00,000
|
15%
|
|
Rs 10,00,001 - Rs 12,50,000
|
20%
|
|
Rs 12,50,001 - Rs 15,00,000
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25%
|
|
Rs 15,00,001 and above
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30%
|
* Tax rebate up to Rs.12,500 is applicable if the total income does not exceed Rs 5,00,000 (not applicable for NRIs)
Refer to the above image for the rates applicable to FY 2023-24 (AY 2024-25) for the upcoming tax filing season.etc
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