Income tax is a mandatory obligation for individuals, HUFs (Hindu Undivided Families), LLPs (Limited Liability Partnerships), and companies in India when their income exceeds specific limits.
Firstly Every person should be updated about ITR Filling Last Date. Filing the ITR after the deadline can result in penalties and heavy interest charges.
We pay Tax based on slab rate, slab means a specific income range to which corresponding tax rates are applied. As your income increases, your tax rates also increase accordingly. These slab rates are periodically revised and vary based on the taxpayer’s category or group for example –
- Normal citizen( age less then 60 Years)
- Senior citizen( age 60-80 Years)
- Super senior citizen( more then 80 Years)
Income Tax Slab Rates for FY 2022-23 (AY 2023-24)
In this system Specifically, there are 2 slabs, one is the old slab and the second is the New Slab rate. Let’s check both with the use of Table-
| Income Slabs | Old Tax Regime FY 2022-23 (AY 2023-24) | Income Slabs | New Tax Regime FY 2022-23 (AY 2023-24) |
| Up to Rs 2.5 lakh | NIL | Up to Rs 2.5 lakh | NIL |
| Rs 2.5 lakh – Rs 5 lakh | 5% (Rebate u/s 87A is Available) | Rs 2.5 lakh – Rs 5 lakh | 5% (Rebate u/s 87A is Available) |
| Rs 5 lakh – Rs 10 lakh | 20% | Rs 5 lakh – Rs 7.5 lakh | 10% |
| More than Rs 10 lakh | 30% | Rs 7.5 lakh – Rs 10 lakh | 15% |
| Rs 10 lakh – Rs 12.5 lakh | 20% | ||
| Rs 12.5 lakh – Rs 15 lakh | 25% | ||
| More than ₹15,00,000 | 30% |
- Assessee having net taxable income less than or equal to 5 lacks will be eligible for a Tax Rebate of Rs 12,500 u/s 87A. From this rebate, the total tax liability will be NIL in the case of both New and Old Tax Regimes.
- on the other hand in every case, You must pay a 4% cess on your tax liability + surcharge amount.
- If income exceeds certain limits surcharge will be applicable, Here are the rates of the Surcharge-
Surcharge Rates
| Income | Surcharge Rates |
| Up to Rs 50 lakh | Nil |
| Rs 50 lakh – Rs 1 Crore | 10% |
| Rs 1 Crore – Rs 2 Crore | 15% |
| Rs 2 Crore – Rs 5 Crore | 25% |
| More Than Rs 5 Crore | 37% |
- However 5% and 37% surcharge rates will not be applicable to the income taxable under Short term capital gain u/s 111A, Long term capital gain u/s 112A, Capital gain u/s 112, Dividend Income, and u/s 115AD. The highest surcharge rate on this income is 15%.
- The New tax regime is the same for all Types of Individuals, there are no Specifically slabs for senior citizens in new tax regime.
Income Tax Old Slab Rates For Senior Citizen and Super Senior Citizen FY 2022-23, 2023-24
| Income Slab | For Senior Citizens Age (60-80 Years) | For Super Senior Citizens Age (More Than 80 Years) |
| Up to Rs 2.5 lakh | NIL | NIL |
| Rs 2.5 lakh – Rs 3 lakh | NIL | NIL |
| Rs 3 lakh – Rs 5 lakh | 5% (Rebate u/s 87A is Available) | NIL |
| Rs 5 lakh – Rs 10 lakh | 20% | 20% |
| More than ₹10,00,000 | 30% | 30% |
Income Tax Slab Rates for FY 2023-24 (AY 2024-25)
In the Budget 2023, Finance Minister Nirmala Sitaraman Revise the New Income Tax Regime. overall The old tax regime for the FY 2023-24 (AY 2024-25) is the same as mentioned above.
Under the Revised Regime, the income limit for availing of a rebate has been increased from Rs. 5 lacks to Rs. 7 lacks. Consequently, individuals eligible for this rebate will now receive a rebate of up to Rs. 25,000 under section 87A.
Furthermore, here are the revised income tax slab rates for the financial year 2023-24 (assessment year 2024-25).
| Income Slabs | Income Tax New Regime For FY 2023-24 (AY 2024-25) |
| Up to Rs 3 lakh | NIL |
| Rs 3 lakh – Rs 6 lakh | 5% |
| Rs 6 lakh – Rs 9 lakh | 10% |
| Rs 9 lakh – Rs 12 lakh | 15% |
| Rs 12 lakh – Rs 15 lakh | 20% |
| More Than Rs 15 lakh | 30% |
Key Conditions for the New Tax Regime
The CBDT has recently released Notification No. 43/2023-Income Tax on 21st June 2023, which introduces a new Form 10-IEA for individuals to opt or withdraw from the New Tax Regime for the financial year 2023-2024 (AY 2024-25).
In the new tax regime, however, there are several exemptions and deductions that taxpayers are not allowed to claim. Consequently, taxpayers are required to forgo these deductions. Let’s look at some common deductions that fall under this category –
- Section 80C’s Deductions
- House Rent Allowance (HRA)
- Conveyance allowance
- Children education allowance
- Leave Travel Allowance
- Helper allowance
- Professional tax
- Interest on housing loan u/s 24
Difference between New Tax Regime and Old Tax Regime
| Income Slab | Old Regime | New Regime FY 2022-23 (AY 2023-24) | New Regime FY 2023-24 (AY 2024-25) |
| Up to Rs 2.5 lakh | NIL | NIL | NIL |
| Rs 2.5 lakh – Rs 3 lakh | 5% | 5% | NIL |
| Rs 3 lakh – Rs 5 lakh | 5% | 5% | 5% |
| Rs 5 lakh – Rs 6 lakh | 20% | 10% | 5% |
| Rs 6 lakh – Rs 7.5 lakh | 20% | 10% | 10% |
| Rs 7.5 lakh – Rs 9 lakh | 20% | 15% | 10% |
| Rs 9 lakh – Rs 10 lakh | 20% | 15% | 15% |
| Rs 10 lakh – Rs 12 lakh | 30% | 20% | 15% |
| Rs 12 lakh – Rs 12.5 lakh | 30% | 20% | 20% |
| Rs 12.5 lakh – Rs 15 lakh | 30% | 25% | 20% |
| More Than Rs 15 lakh | 30% | 30% | 30% |
Income Tax Rate on Partnership Firm
- Partnership firms/LLPs are liable to pay income tax at the flat rate of 30%.
- Furthermore, If Income Exceeds Rs 1 Crore 12% surcharge will be applied.
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FAQs
Yes, Rs 50,000 Standard Deduction is allowed if an individual opting a New Tax slab for the FY 2023-24. earlier was not allowed for FY 2022-23.
For Business & Profession- The decision regarding tax regimes can only be made once in a person’s lifetime.
For Salary Persone & attracting TDS- at the start of the financial year, it can’t be changed in the middle of the year, however, you can change it while filing the ITR.
1. If your income is below the basic exemption limit.
2. If you don’t have an account & property located outside India.
3. if you don’t deposit Rs 1 Crore in the current account in FY.
4. If you don’t want to claim Income Tax Refund.
5. if you don’t pay the Electricity bill of Rs 1 Lakh.
6. if you don’t expense Rs 2.5 Lakh in Foreign Travel.
No, Family Pension comes under “Income From Other Sources”.
No, it’s your choice to go with New Tax Regime or Old Tax Regime.
No, 80C Deduction is not allowed in New Regime however, you can claim Deduction u/s 80CCD(2) in New Regime.
For Example If you earn income from April 2022 to March 2023 then
2022-23- Financial Year (Income earned)
2023-24 – Assessment Year (Tax paid on previous year’s income i.e. 2022-23)
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