Individual taxpayers must pay income tax based on the slab system into which they fall. Individuals may fall into a different tax bracket depending on their Income. As a result, persons with higher incomes will have to pay more taxes. The slab system was implemented to keep the country’s tax system equitable. The slabs change with each budget announcement.
New Income Tax Slab for FY 2023-24 (AY 2024-25)
Last updated – 1st Feb, 2023
The following tables show the Revised Income Tax Slabs and not the old tax regime. The table for the new tax regime slabs-
| TAX SLAB | RATES |
| Rs. 0 to 3 Lakhs | NIL |
| Rs. 3 Lakhs -6 Lakhs | 5.00% |
| Rs. 6 Lakhs – 9 Lakhs | 10.00% |
| Rs. 9 Lakhs -12 Lakhs | 15.00% |
| Rs. 12 Lakhs – 15 Lakhs | 20.00% |
| Rs. 15 Lakhs and more | 30.00% |
New Income Tax Slabs FY23-24
In India, income tax is calculated using income tax slabs and rates for the applicable financial year (FY) and assessment year (AY). The income tax slab for AY 2024-25 was published as part of the Union Budget 2023-24 on February 1, 2023.
Income Tax Slab
Individual taxpayers must pay income tax based on the slab system into which they fall. Individuals may fall into a different tax bracket depending on their Income. As a result, persons with higher incomes will have to pay more taxes. The slab system was implemented to keep the country’s tax system equitable. The slabs change with each budget announcement.
New Income Tax Slab for FY 2023-24 (AY 2024-25)
Last updated – 1st Feb, 2023
The following tables show the Revised Income Tax Slabs and not the old tax regime. The table for the new tax regime slabs-
| Tax Slab | Rates |
| Rs. 0 to 3 Lakhs | NIL |
| Rs. 3 Lakhs -6 Lakhs | 5.00% |
| Rs. 6 Lakhs – 9 Lakhs | 10.00% |
| Rs. 9 Lakhs – 12 Lakhs | 15.00% |
| Rs.12 Lakhs – 15 Lakhs | 20.00% |
| Rs. 15 lakhs and more | 30.00% |
Income Tax Slab for People Between 60 to 80 Years
| Tax Slabs | Rates |
| Rs. 3 lakhs | NIL |
| Rs. 3 lakhs – Rs. 5 lakhs | 5.00% |
| Rs. 5 lakhs – Rs. 10 lakhs | 20.00% |
| Rs. 10 lakhs and more | 30.00% |
Note: These rates are yet to updated as per the Latest Budget
Income Tax Slab for People More than 80 Years
| Tax Slabs | Rates |
| Rs. 5 lakhs | NIL |
| Rs. 5 lakhs – Rs. 10 lakhs | 20.00% |
| Rs, ten lakhs and more | 30.00% |
Note: These rates are yet to updated as per Latest Budget
Tax Slabs from Domestic Companies
| Turnover of the Company | Rates |
| Rs. 250 crores for the previous years | 25% |
| More than Rs. 250 for the previous year’s turnover | 30% |
Note: These rates are yet to updated as per Latest Budget
Surcharge
| Income Range | 2022-23 Rates | 2023-24 Rates |
| Rs.50 lakhs to Rs.1 crore | 10% | 10% |
| Rs.1 crore to Rs.2 crore | 15.00% | 15% |
| Rs.2 crores to Rs.5 crore | 25.00% | 25% |
| Rs.5 crores to Rs.10 crore | 37.00% | 37% |
| More than Rs.10 crore | 37.00% | 37% |
Note: These rates are yet to updated as per Latest Budget
Individuals, trusts, businesses, and other entities are all subject to income tax. As a result, there are numerous forms of income that can be taxed in India.
Mentioned below are some of the different types of taxable income in India-
- Business Income
Profits earned by businesses are also counted as taxable income. The tax in this category is derived from the presumed or real income that the profession or business may generate. However, it is only done once the permitted deductions have been adjusted.
Different rates apply to individual and corporate business income in the fiscal year 2023-24. Individuals with business income will be taxed in accordance with income tax slabs and rates for the fiscal year 2023-24.
- Salary or Pension
Taxes are frequently levied on the base salary, allowances, and salary profit in this category. The income tax slab also applies to an individual’s pension after retirement. The income tax slabs rates for FY 2023-24 differ based on the age of the individual earning a salary or pension during the fiscal year.
- Property Income
Owning many houses and renting them out is an easy method to supplement your income. In such circumstances, however, revenue from house renting is recognized as part of the taxpayer’s income. As a result, this income is taxable at the income tax slab rates for the fiscal year 2023-24.
- Capital Gains Income
Capital Gains income can be generated by selling assets such as gold, real estate, mutual funds units, stocks, debentures, and so on. It can be characterized as a long-term or short-term capital gain depending on the type of asset and the earnings produced on it over time.
- Lottery, Races, and More Income
In India, winnings from lotteries, horse races, and other similar activities are taxable. However, under current tax legislation, these profits are taxed separately rather than as part of the income slab rates for the fiscal year 2023-24.
Distinction Between the Old Regime and the New Regime
In the fiscal year 2020-21, a new tax regime was implemented in addition to the existing old tax regime. Taxpayers in FY 2023-24 (AY 2024-25) have to go with the new tax regime as this was considered the default one from FY23-24. However, individuals can continue with the old income tax regime. The surcharge of the highest rate from 37% was currently reduced to 25% in the new tax regime by the government.
There are two significant distinctions between India’s two income tax regimes:
- To begin with, the new tax regime has more tax slabs with lower tax rates than the old tax regime. As a result, the income tax slabs for FY 2023-24 fluctuate depending on whether you choose the new or old tax regime.
- Second, all of the important deductions and exemptions available under the previous tax regime, such as Section 80C, Section 80D, and so on, are no longer available if you choose the new tax regime.
Tax deductions and exclusions enable taxpayers to decrease their tax liability by investing, saving, or spending on specified financial instruments.
Though income tax slab rates for AY 2024-25 are lower than under the previous regime, the new tax regime provides very few exemptions or deduction choices. In comparison, the previous tax scheme allowed for up to 70 deductions or exclusions to reduce your taxable income and income tax liability in the fiscal year 2023-24.
New Income Tax Slabs FY23-24 – FAQs
How is a taxpayer’s IncomeIncome classified?
The taxpayer’s IncomeIncome has been classed under five separate income heads under Section 14 of the Income Tax Act, including Salaries from Individuals, Gains in the capital, Profits from a profession or a business, IncomeIncome from home, IncomeIncome from other sources.
Is it essential for me to submit an Income Tax Return if my annual Income is less than Rs.2.5 lakh?
If your yearly Income is less than Rs.2.5 lakh, you do not need to file an ITR, but you need to file a ‘Nil Return’ only for the record as you can use it as proof of employment in many circumstances.
Will my Income as an agriculturist be taxed?
Any money earned by agriculture or related activities will not be taxed. However, it will be taken into account for calculating the tax on any non-agricultural income you may have.
Who is eligible for reimbursement under the Section 87A?
Any resident Indian whose total annual IncomeIncome is less than Rs.5 lakh can claim a rebate under Section 87A. The maximum rebate payable under Section 87A is Rs.12,500.
