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 of age: 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 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 2022-23 (AY 2023-24) and FY 2023-24(AY 2024-25).
Income Tax Slab Rates For FY 2022-23 (AY 2023-24)
a. New Tax regime
| Income Slabs | Income Tax Rates |
| ₹0 – ₹2,50,000 | – |
| ₹2,50,000 – ₹5,00,000 | 5% (tax rebate u/s 87A is available) |
| ₹5,00,000 – ₹7,50,000 | 10% |
| ₹7,50,000 – ₹10,00,000 | 15% |
| ₹10,00,000 – ₹12,50,000 | 20% |
| ₹12,50,000 – ₹15,00,000 | 25% |
| >₹15,00,000 | 30% |
Refer to the above image for the rates applicable to FY 2023-24 (AY 2024-25) for the upcoming tax filing season.
b. Old Tax regime
Select your Age Group: Less Than 60 Years Old 60-80 years Above 80 years
Income tax slabs for individual aged below 60 years & HUF
| Income Slabs | Individuals Below The Age Of 60 Years and NRIs |
|---|---|
| Up to Rs 2.5 lakh | NIL |
| Rs 2.5 lakh – Rs 5 lakh | 5% |
| Rs 5 lakh – Rs 10 lakh | 20% |
| > Rs 10 lakh | 30% |
NOTE:
- Income tax exemption limit is up to Rs 2,50,000 for Individuals, HUF below 60 years aged and NRIs.
- Surcharge and cess will be applicable as discussed above
Income tax slab for individual aged above 60 years to 80 years
| Income Slabs | Tax Slabs for Senior Citizens (Aged 60 Years But Less Than 80 Years) |
|---|---|
| Rs 0 – Rs 3 lakh | NIL |
| Rs 3 lakh – Rs 5 lakh | 5% |
| Rs 5 lakh – Rs 10 lakh | 20% |
| > Rs 10 | 30% |
NOTE:
- Income tax exemption limit is up to Rs.3 lakh for senior citizens aged above 60 years but less than 80 years.
- Surcharge and cess will be applicable as discussed above
Income tax slab for Individual aged more than 80 years
| Income Slabs | Income Tax Slab for Super Senior Citizens (Aged 80 Years And Above) |
|---|---|
| Rs 0 – Rs 5 lakh* | NIL |
| Rs 5 lakh – Rs 10 lakh | 20% |
| > Rs 10 lakh | 30% |
NOTE:
- Income tax exemption limit is up to Rs 5 lakh for super senior citizen aged above 80 years.
- Surcharge and cess will be applicable as discussed above
Comparison of tax rates under New tax regime & Old tax regime for FY 2022-23 (AY 2023-24)
Slabs | Old Tax Regime | New Tax Regime | |||
| <60 years & NRIs | >60 to <80 years | > 80 years | FY 2022-23 | FY 2023-24 | |
| ₹0 – ₹2,50,000 | NIL | NIL | NIL | NIL | NIL |
| ₹2,50,000 – ₹3,00,000 | 5% | NIL | NIL | 5% | NIL |
| ₹3,00,000 – ₹5,00,000 | 5% | 5% (tax rebate u/s 87A is available) | NIL | 5% | 5% |
| ₹5,00,000 – ₹6,00,000 | 20% | 20% | 20% | 10% | 5% |
| ₹6,00,000 – ₹7,50,000 | 20% | 20% | 20% | 10% | 10% |
| ₹7,50,000 – ₹9,00,000 | 20% | 20% | 20% | 15% | 10% |
| ₹9,00,000 – ₹10,00,000 | 20% | 20% | 20% | 15% | 15% |
| ₹10,00,000 – ₹12,00,000 | 30% | 30% | 30% | 20% | 15% |
| ₹12,00,000 – ₹12,50,000 | 30% | 30% | 30% | 20% | 20% |
| ₹12,50,000 – ₹15,00,000 | 30% | 30% | 30% | 25% | 20% |
| >₹15,00,000 | 30% | 30% | 30% | 30% | 30% |
Revised Income Tax Slab Rate FY 2023-24 (AY 2024-25) – For New Regime
| Income Slabs | Income Tax Rates FY 2023-24 (AY 2024-25) |
| Up to Rs 3,00,000 | Nil |
| Rs 3,00,000 to Rs 6,00,000 | 5% on income which exceeds Rs 3,00,000 |
| Rs 6,00,000 to Rs 900,000 | Rs. 15,000 + 10% on income more than Rs 6,00,000 |
| Rs 9,00,000 to Rs 12,00,000 | Rs. 45,000 + 15% on income more than Rs 9,00,000 |
| Rs 12,00,000 to Rs 1500,000 | Rs. 90,000 + 20% on income more than Rs 12,00,000 |
| Above Rs 15,00,000 | Rs. 150,000 + 30% on income more than Rs 15,00,000 |
How to Calculate Income Tax from Income Tax Slabs?
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 for FY 2022-23 (AY 2023-2024).
| Income Tax Slabs | Tax Rate | Tax Amount |
|---|---|---|
| *Income up to Rs 2,50,000 | No tax | – |
| Income from Rs 2,50,000 – Rs 5,00,000 | 5% (Rs 5,00,000 – Rs 2,50,000) | Rs 12,500 |
| Income from Rs 5,00,000 – 10,00,000 | 20% (Rs 8,00,000 – Rs 5,00,000) | Rs 60,000 |
| Income more than Rs 10,00,000 | 30% | – |
| Tax | Rs 72,500 | |
| Cess | 4% of Rs 72,500 | Rs 2,900 |
| Total tax in FY 2022-23 (AY 2023-24) | Rs 75,400 | |
*Please note that Rohit is an individual taxpayer assessee having an income tax exemption of Rs 2,50,000. For other taxpayers assessee i.e. senior citizens and super senior citizens, the Income tax limit for availing the exemption would be Rs 3,00,000 & Rs 5,00,000 respectively.
Important points to note if you select the new tax regime:
- Please note that the tax rates in the New tax regime is the same for all categories of Individuals, i.e. Individuals, Senior citizens and Super senior citizens.
- Individuals with Net taxable income less than or equal to Rs 5 lakh will be eligible for tax rebate u/s 87A i.e. tax liability will be NIL in both – New and old/existing tax regimes.
*In Budget 2023, rebate under new regime has been increased and therefore, income upto Rs 7 lakh will be tax-free from FY 2023-24. - Surcharge: In case the income exceeds a certain threshold, surcharge will be applicable
- Surcharge rates are as below:
- 10% of Income tax if total income > Rs.50 lakh
- 15% of Income tax if total income > Rs.1 crore
- 25% of Income tax if total income > Rs.2 crore
- 37% of Income tax if total income > Rs.5 crore
*In Budget 2023, the highest surcharge rate of 37% has been reduced to 25% under the new tax regime. (applicable from 1st April 2023)
- Surcharge rates of 25% or 37%, will not be applicable to the income which is taxable under sections 111A (Short Term Capital Gain on Shares), 112A (Long Term Capital Gain on Shares), and 115AD (Tax on income of Foreign Institutional Investors). Therefore, the highest surcharge rate on the tax payable for such incomes will be 15%.
- From Assessment Year 2023-24, the maximum surcharge rate on tax payable for dividend income or capital gain mentioned in Section 112 will be 15%. The surcharge rate for an Association of Persons (AOP) consisting entirely of companies will also be limited to 15%.
- Surcharge rates are as below:
- Additional Health and Education cess at the rate of 4% will be added to the income tax liability + surcharge in all cases
Conditions for opting new tax regime
The taxpayer opting for concessional rates in the New Tax regime will have to forgo certain exemptions and deductions available in the existing old tax regime. In all there are 70 deductions & exemptions that are not allowed, out of which the most commonly used are listed below:
| Particulars | Old Tax Regime | New Tax regime (until 31st March 2023) | New Tax Regime (From 1st April 2023) |
| Income level for rebate eligibility | ₹ 5 lakhs | ₹ 5 lakhs | ₹ 7 lakhs |
| Standard Deduction | ₹ 50,000 | – | ₹ 50,000 |
| Effective Tax-Free Salary income | ₹ 5.5 lakhs | ₹ 5 lakhs | ₹ 7.5 lakhs |
| Rebate u/s 87A | 12,500 | 12,500 | 25,000 |
| HRA Exemption | ✓ | X | X |
| Leave Travel Allowance (LTA) | ✓ | X | X |
| Other allowances including food allowance of Rs 50/meal subject to 2 meals a day | ✓ | X | X |
| Standard Deduction (Rs 50,000) | ✓ | X | ✓ |
| Entertainment Allowance Deduction and Professional Tax | ✓ | X | X |
| Perquisites for official purposes | ✓ | ✓ | ✓ |
| Interest on Home Loan u/s 24b on slef-occupied or vacant property | ✓ | X | X |
| Interest on Home Loan u/s 24b on let-out property | ✓ | ✓ | ✓ |
| Deduction u/s 80C (EPF|LIC|ELSS|PPF|FD|Children’s tuition fee etc) | ✓ | X | X |
| Employee’s (own) contribution to NPS | ✓ | X | X |
| Employer’s contribution to NPS | ✓ | ✓ | ✓ |
| Medical insurance premium – 80D | ✓ | X | X |
| Disabled Individual – 80U | ✓ | X | X |
| Interest on education loan – 80E | ✓ | X | X |
| Interest on Electric vehicle loan – 80EEB | ✓ | X | X |
| Donation to Political party/trust etc – 80G | ✓ | X | X |
| Savings Bank Interest u/s 80TTA and 80TTB | ✓ | X | X |
| Other Chapter VI-A deductions | ✓ | X | X |
| All contributions to Agniveer Corpus Fund – 80CCH | ✓ | Did not exist | ✓ |
| Deduction on Family Pension Income | ✓ | ✓ | ✓ |
| Gifts up to Rs 50,000 | ✓ | ✓ | ✓ |
| Exemption on voluntary retirement 10(10C) | ✓ | ✓ | ✓ |
| Exemption on gratuity u/s 10(10) | ✓ | ✓ | ✓ |
| Exemption on Leave encashment u/s 10(10AA) | ✓ | ✓ | ✓ |
| Daily Allowance | ✓ | ✓ | ✓ |
| Transport Allowance for a specially-abled person | ✓ | ✓ | ✓ |
| Conveyance Allowance | ✓ | ✓ | ✓ |