Explore the latest Income Tax Slab 2023 24 and AY 2024 25, introduced in the Union Budget 2022-23. Understand the impact of the new tax regime on deductions and exemptions with our comprehensive guide.
In India, the computation of income tax relies on the income tax slabs and corresponding rates applicable for a given financial year (FY) and assessment year (AY). The income tax slab 2023 24 was unveiled during the presentation of the Union Budget 2022-23.
As we step into the financial year tax slab 2023 24, understanding the revised tax slabs is crucial for individuals and businesses alike. The Indian government periodically reviews and updates tax structures to align with economic changes. The latest tax slab adjustments aim to strike a balance between revenue generation and providing relief to taxpayers.
For individual taxpayers, the income tax slab 2023 24 have undergone modifications, with new income brackets and revised tax rates. It is imperative for taxpayers to familiarize themselves with these changes to optimize their financial planning.
Income Tax Slab
Individual taxpayers are obligated to remit income tax based on their placement within the income slab structure. An individual’s position in this structure is determined by their income level. Consequently, individuals with higher incomes are subject to higher tax liabilities.
The adoption of the slab system aims to uphold fairness within the nation’s taxation system. These slabs undergo modifications with each budget announcement, ensuring they align with evolving economic conditions and fiscal policies.
Income Tax Slab 2023 24 (AY 2024-25)
Below are tables displaying the Updated Income Tax Slabs for the current tax regime, which were introduced in the 2023 Budget. These tables pertain to the latest tax structure in India.
| Tax Slab | Rates |
| Up to ₹ 3,00,000 | NIL |
| ₹ 300,000 to ₹ 6,00,000 | 5% on income which exceeds ₹ 3,00,000 |
| ₹ 6,00,000 to ₹ 900,000 | ₹ 15,000 + 10% on income more than ₹ 6,00,000 |
| ₹ 9,00,000 to ₹ 12,00,000 | ₹ 45,000 + 15% on income more than ₹ 9,00,000 |
| ₹ 12,00,000 to ₹ 15,00,000 | ₹ 90,000 + 20% on income more than ₹ 12,00,000 |
| Above ₹ 15,00,000 | ₹ 150,000 + 30% on income more than ₹ 15,00,000 |
Income Tax Slab 2023 24 for People Between 60 to 80 Years
| Tax Slabs | Rates |
| ₹ 3 lakhs | NIL |
| ₹ 3 lakhs – ₹ 5 lakhs | 5.00% |
| ₹ 5 lakhs – ₹ 10 lakhs | 20.00% |
| ₹ 10 lakhs and more | 30.00% |
Income Tax Slab 2023 24 for People More than 80 Years
| Tax Slabs | Rates |
| ₹ 0 – ₹ 5 lakhs | NIL |
| ₹ 5 lakhs – ₹ 10 lakhs | 20.00% |
| Above ₹ 10 lakhs | 30.00% |
Tax Slab 2023 24 for Domestic Companies
| Specifics | Tax Rates (Existing or Old Regime) | Tax Rates (New Regime) |
| When a company chooses Section 115BAB, applicable to those registered on/after October 1, 2019, and commencing manufacturing on or before March 31, 2023 | – | 15% |
| Opting for Section 115BAA, where a company calculates total income without claiming specified deductions, exemptions, incentives, and additional depreciation | – | 22% |
| Selecting Section 115BA, applicable to companies registered on or after March 1, 2016, engaged in manufacturing and not claiming specified deductions | – | 25% |
| Companies with a turnover/gross receipt less than ₹ 400 crores in the previous year | 25% | 25% |
| Other Domestic Companies | 30% | 30% |
Surcharge for Companies –
- 7% surcharge on Income Tax for total income exceeding ₹ 1 crore
- 12% surcharge on Income Tax for total income exceeding ₹ 10 crores
- 10% surcharge on Income Tax for domestic companies choosing Section 115BAA and 115BAB
- Additional Health & Education Cess Rate – 4%
Income Tax Rate for Partnership Firm or LLP as Per Old/New Regime
Discover the Latest Income Tax Rates for LLP (Limited Liability Partnerships) in India. Stay informed about the updated tax brackets and regulations for LLPs in the fiscal year. Expert insights on income tax rates for LLPs in 2023 to ensure accurate financial planning. Trust us for the latest and reliable information. Partnership firms and LLPs are subject to a 30% tax rate.
Note:
A 12% surcharge applies to incomes exceeding ₹ 1 crore.
Health and Education Cess Rate – 4%
Income Tax Slab Rate for New Tax Regime
| Slab | New Tax Regime (Before Budget 2023 – until 31 March 2023) | New Tax Regime (After Budget 2023 – From 01 April 2023) |
| ₹ 0 to ₹ 2,50,000 | NIL | NIL |
| ₹ 2,50,000 to ₹ 3,00,000 | 5% | NIL |
| ₹ 3,00,000 to ₹ 5,00,000 | 5% | 5% |
| ₹ 5,00,000 to ₹ 6,00,000 | 10% | 5% |
| ₹ 6,00,000 to ₹ 7,50,000 | 10% | 10% |
| ₹ 7,50,000 to ₹ 9,00,000 | 15% | 10% |
| ₹ 9,00,000 to ₹ 10,00,000 | 15% | 15% |
| ₹ 10,00,000 to ₹ 12,00,000 | 20% | 15% |
| ₹ 12,00,000 to ₹ 12,50,000 | 20% | 20% |
| ₹ 12,50,000 to ₹ 15,00,000 | 25% | 20% |
| More than ₹ 15,00,000 | 30% | 30% |
Conditions for Opting for the New Tax Tax Slab 2023 24
One of the primary conditions for opting for the new tax regime is the willingness to forego specific deductions and exemptions that are available under the old tax regime. These deductions and exemptions play a crucial role in reducing taxable income and consequently lowering the overall tax liability. Here are some common deductions and exemptions not allowed under the new tax regime:
Leave Travel Allowance: Under the old regime, employees could claim tax benefits on expenses related to leave travel. However, this deduction is not available in the new tax regime.
Conveyance Allowance: Taxpayers who received conveyance allowance as part of their salary package could previously claim exemptions. This allowance is not eligible for exemption under the new regime.
House Rent Allowance: House Rent Allowance (HRA) is a common component of salary that provides tax benefits for individuals living in rented accommodations. This benefit is not applicable under the new regime.
Relocation Allowance: Any relocation allowance received by an individual for shifting their residence or workplace is not eligible for exemption under the new tax regime.
Children Education Allowance: Previously, parents could claim deductions for expenses related to their children’s education. This benefit is no longer available in the new regime.
Professional Tax: Professional tax is levied by some state governments and was previously allowed as a deduction. However, it is not eligible for deduction under the new regime.
Daily Expenses in the Course of Employment: Employees who received allowances for daily expenses incurred during work were eligible for deductions. Such allowances are not deductible in the new regime.
Helper Allowance: Any allowance given to employees for hiring domestic help or helpers is not exempted under the new tax regime.
Deductions Under Chapter VI-A: Several deductions under Chapter VI-A, such as Section 80C (investments like PPF, EPF, ELSS), Section 80D (health insurance premiums), and Section 80E (education loan interest), are not allowed in the new regime. However, Section 80CCD(2) is an exception, and contributions to the National Pension Scheme (NPS) can still be claimed.
Standard Deduction on Salary: The standard deduction on salary, which provided a flat deduction, is not applicable in the new tax regime.
Common Deductions That are Allowed Under New Tax Rate Regime
In the new tax rate regime, certain deductions are still available to taxpayers, allowing for potential tax savings. Here are the key deductions you can claim:
- Notified Pension Scheme (Section 80CCD(2)): Deduct contributions to recognised pension plans.
- Conveyance Allowance: Claim expenses for traveling to work.
- Depreciation (Section 32): Businesses can depreciate assets, reducing taxable income.
- Employment of New Employees (Section 80JJAA): Get deductions for hiring new employees.
- Employment-Related Travel Allowances: Deduct expenses for work-related travel.
- Transport Allowance for Specially-Abled: Special allowances for specially-abled individuals.
These deductions can help you optimise your tax planning under the new regime, ensuring you benefit from available tax relief. Consider consulting a tax expert for personalised guidance.
FAQs
What is the new regime tax slab 2023 24?
The new regime tax slab for 2023 24 varies based on income levels, with different tax rates for each bracket. It was introduced as part of the 2023 Budget.
What are the new tax updates for 2023?
The new tax updates for 2023 include revised income tax slabs, which were introduced in the 2023 Budget, affecting the taxation of individuals based on their income levels. Additionally, there have been changes in deductions and exemptions available to taxpayers.
What is 80C for fy tax slab 2023 24?
Taxpayers can claim exemptions of up to ₹ 1.5 lakh under section 80C of the Income Tax Act, 1961, which offers tax savings on various investments and expenditures made during the financial year.
How is a taxpayer's Income classified?
A taxpayer's income is typically classified into various categories, such as earned income, passive income, and investment income, based on its source and nature. These classifications help determine the applicable tax treatment and rates.
