Latest income tax slab rates for FY 2023-24 (AY 2024-25)
What is the new tax regime
The new tax regime was announced for individuals who were unable to claim the benefits of the deductions and tax exemptions available. Currently, the new tax regime offers 6 tax slabs and lower tax rates as compared with the old income tax regime.
Default tax regime
Further, the new income tax regime becomes the default tax regime. However, the individuals will have an option to continue with the old income tax regime. The government has reduced the surcharge of the highest rate from 37% currently to 25% in new tax regime.
New slabs
A rebate under Section 87A has been enhanced under the new tax regime; from the current income level of Rs 5 lakh to Rs 7 lakh. Thus, individuals opting for the new income tax regime and having an income upto Rs 7 lakh will not pay any taxes.
Key tax changes
Basic exemption limit has been hiked to Rs 3 lakh from Rs 2.5 currently under the new income tax regime in Budget 2023. Further, the income tax slabs in the new tax regime has been changed.
How’ bout senior citizens old regime slabs
What about senior citizens old slabs ?