Tax Rebate Information
Tax rebate up to Rs.12,500 is available if the total income is up to Rs 5,00,000 under the new income tax slab. This rebate is not applicable for NRIs. When considering the income tax slab 2023-24, it’s important to understand the differences between the new income tax slab and the old income tax slab. The income tax new slab offers certain benefits that might differ from the old income tax slab.
Income Tax Rates for FY 2023-24 (AY 2024-25)
| Income Slabs | Income Tax Rates |
|---|---|
| Up to Rs 3,00,000 | Nil |
| Rs 3,00,000 to 6,00,000 | 5% on income exceeding Rs 3,00,000 |
| Rs 6,00,000 to 9,00,000 | Rs 15,000 + 10% on income exceeding Rs 6,00,000 |
| Rs 9,00,000 to 12,00,000 | Rs 45,000 + 15% on income exceeding Rs 9,00,000 |
| Rs 12,00,000 to 15,00,000 | Rs 90,000 + 20% on income exceeding Rs 12,00,000 |
| Above Rs 15,00,000 | Rs 1,50,000 + 30% on income exceeding Rs 15,00,000 |
Major Changes in Filing Income Tax Returns
- FY 2022-23: Default regime was the Old tax regime. Form 10-IE was required for the New tax regime.
- FY 2023-24: Default regime is now the New tax regime. To file under the Old regime, you must do so by the due date.
Tax Brackets for 2023
| Tax Rate | Single | Married Filing Jointly | Married Filing Separately | Head of Household |
|---|---|---|---|---|
| 10% | $0 to $11,000 | $0 to $22,000 | $0 to $11,000 | $0 to $15,700 |
| 12% | $11,001 to $44,725 | $22,001 to $89,450 | $11,001 to $44,725 | $15,701 to $59,850 |
| 22% | $44,726 to $95,375 | $89,451 to $190,750 | $44,726 to $95,375 | $59,851 to $95,350 |
| 24% | $95,376 to $182,100 | $190,751 to $364,200 | $95,376 to $182,100 | $95,351 to $182,100 |
| 32% | $182,101 to $231,250 | $364,201 to $462,500 | $182,101 to $231,250 | $182,101 to $231,250 |
| 35% | $231,251 to $578,125 | $462,501 to $693,750 | $231,251 to $346,875 | $231,251 to $578,100 |
| 37% | $578,126 or more | $693,751 or more | $346,876 or more | $578,101 or more |
How to Calculate Income Tax from Income Tax Slabs?
Illustration 1: 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 as per the old regime for FY 2023-24 (AY 2024-2025).
Rohit has a taxable income of Rs 8,00,000.
| Income Tax Slabs | Tax Rate | Tax Amount |
|---|---|---|
| Income up to Rs 2,50,000 | No tax | – |
| Rs 2,50,000 – 5,00,000 | 5% on Rs 2,50,000 | Rs 12,500 |
| Rs 5,00,000 – 10,00,000 | 20% on Rs 3,00,000 | Rs 60,000 |
| Income over Rs 10,00,000 | 30% | – |
| Total Tax | Rs 72,500 | |
| Cess (4%) | Rs 2,900 | |
| Total Tax Payable | Rs 75,400 |
Note: Rohit is an individual taxpayer with an exemption of Rs 2,50,000.
Important Points for the New Tax Regime
- The same tax rates apply to Individuals, Sen-ior Citizens, and Super Se-nior Citizens.
- Individuals with a net taxable income of up to Rs 7 lakh are eligible for a tax rebate under Section 87A, making the tax liability NIL.
Surcharge Rates
- 10% of Income tax if income > Rs.50 lakh and < Rs.1 crore
- 15% of Income tax if income > Rs.1 crore and < Rs.2 crore
- 25% of Income tax if income > Rs.2 crore and < Rs.5 crore
- 37% of Income tax if income > Rs.5 crore
Note: The highest surcharge rate has been reduced to 25% from 37% from 1st April 2023.
Tax Brackets for 2023: Single Filers
| Tax Rate | Taxable Income Bracket | Tax Owed |
|---|---|---|
| 10% | $0 to $11,000 | 10% of taxable income |
| 12% | $11,001 to $44,725 | $1,100 plus 12% of the amount over $11,000 |
| 22% | $44,726 to $95,375 | $5,147 plus 22% of the amount over $44,725 |
| 24% | $95,376 to $182,100 | $16,290 plus 24% of the amount over $95,375 |
| 32% | $182,101 to $231,250 | $37,104 plus 32% of the amount over $182,100 |
| 35% | $231,251 to $578,125 | $52,832 plus 35% of the amount over $231,250 |
| 37% | $578,126 or more | $174,238.25 plus 37% of the amount over $578,125 |
Additional Information
- Health and Education Cess at 4% is added to the income tax liability.
Consequences of Late Filing
- Missing the due date means you must opt for the New Tax regime and forgo certain exemptions and deductions of the Old regime.
Read More: Revenue Tax Estimator – Ascertain Your Fiscal Commitments for FY 2024-25| Utilize Our Online Estimate Tool
Tax Brackets for 2023: Married Filing Jointly
| Tax Rate | Taxable Income Bracket | Taxes Owed |
|---|---|---|
| 10% | $0 to $22,000 | 10% of taxable income |
| 12% | $22,001 to $89,450 | $2,200 plus 12% of the amount over $22,000 |
| 22% | $89,451 to $190,750 | $10,294 plus 22% of the amount over $89,450 |
| 24% | $190,751 to $364,200 | $32,580 plus 24% of the amount over $190,750 |
| 32% | $364,201 to $462,500 | $74,208 plus 32% of the amount over $364,200 |
| 35% | $462,501 to $693,750 | $105,664 plus 35% of the amount over $462,500 |
| 37% | $693,751 or more | $186,601.50 plus 37% of the amount over $693,750 |
Old vs. New Tax Regime
- New Tax Regime: Beneficial for middle-class taxpayers with taxable income up to Rs 15 lakh and for those making low investments.
- Old Tax Regime: Better for high-income earners and those with substantial investments in tax-saving instruments.
Choosing Between Old and New Regime
- Salary or TDS Income: Select the tax regime at the start of the financial year.
- Business or Professional Income: Choose once in a lifetime.
Income Tax Rates for Domestic Companies FY 2023-24
| Particulars | Old Regime Tax Rates | New Regime Tax Rates |
|---|---|---|
| Section 115BAB: Registered on/after Oct 1, 2019; manufacturing before Mar 31, 2024 | – | 15% |
| Section 115BAA: No specified deductions, incentives, exemptions, or additional depreciation | – | 22% |
| Section 115BA: Registered on/after Mar 1, 2016; manufacturing; no specified deductions | – | 25% |
| Turnover < Rs 400 crore in the previous year | 25% | 25% |
| Any other domestic company | 30% | 30% |
Additional Health and Education Cess at 4% applies.
Income Tax for Partnership Firms or LLPs
- Tax Rate: 30%
- Surcharge: 12% on income over Rs 1 crore
- Cess: 4%
Historical Income Tax Slab Rates for Individuals and Companies
FY 2019-20 to FY 2022-23
| Income Tax Slab | Tax Rates for Individuals (Below 60 Years) |
|---|---|
| Up to ₹2,50,000 | Nil |
| ₹2,50,001 to ₹5,00,000 | 5% |
| ₹5,00,001 to ₹10,00,000 | 20% |
| Above ₹10,00,000 | 30% |
| Income Tax Slab | Tax Rates for Senior Citizens (60-80 Years) |
|---|---|
| Up to ₹3,00,000 | Nil |
| ₹3,00,001 to ₹5,00,000 | 5% |
| ₹5,00,001 to ₹10,00,000 | 20% |
| Above ₹10,00,000 | 30% |
| Income Tax Slab | Tax Rates for Super Senior Citizens (80+ Years) |
|---|---|
| Up to ₹5,00,000 | Nil |
| ₹5,00,001 to ₹10,00,000 | 20% |
| Above ₹10,00,000 | 30% |
Additional 4% Health & Education Cess applies.
FY 2018-19
| Income Tax Slab | Tax Rates for Individuals (Below 60 Years) |
|---|---|
| Up to Rs 2,50,000 | No tax |
| Rs 2,50,001 to Rs 5,00,000 | 5% |
| Rs 5,00,001 to Rs 10,00,000 | 20% |
| Above Rs 10,00,000 | 30% |
FY 2017-18
| Income Tax Slab | Tax Rates for Individuals (Below 60 Years) |
|---|---|
| Up to Rs 2,50,000 | No tax |
| Rs 2,50,001 to Rs 5,00,000 | 5% |
| Rs 5,00,001 to Rs 10,00,000 | 20% |
| Above Rs 10,00,000 | 30% |
Additional 4% Health & Education Cess applies.
Income Tax Slabs for Domestic Companies FY 2017-18
| Turnover Particulars | Tax Rate |
|---|---|
| Gross turnover up to Rs 250 crore | 25% |
| Gross turnover exceeding Rs 250 crore | 30% |
How to Calculate Income Tax from Income Tax Slabs
Calculating Rohit’s Tax
Rohit has a total taxable income of Rs 8,00,000 for FY 2023-24 (AY 2024-25). This includes all his earnings from various sources like salary, rental income, and interest income, after applying deductions under Section 80. Rohit wants to determine his tax liability according to the old tax regime.
Read More: PNB FD Rates 2023: Current Interest Rate 5.75%, Punjab National Bank Fixed Deposit Rates
Tax Calculation Breakdown
| Income Tax Slab | Tax Rate | Tax Amount |
|---|---|---|
| Income up to Rs 2,50,000 | No tax | – |
| Income from Rs 2,50,000 to 5,00,000 | 5% on Rs 2,50,000 | Rs 12,500 |
| Income from Rs 5,00,000 to 10,00,000 | 20% on Rs 3,00,000 | Rs 60,000 |
| Income over Rs 10,00,000 | 30% | – |
| Total Tax | Rs 72,500 | |
| Cess (4%) | Rs 2,900 | |
| Total Tax Payable | Rs 75,400 |
Notes:
- Rohit is an individual taxpayer with an income tax exemption limit of Rs 2,50,000.
- For se-nior citizens, the exemption limit is Rs 3,00,000, and for super se-nior citizens, it is Rs 5,00,000.
Read More: SBI FD Interest Rates 2023: Revised FD Rates Up to 7.60%
Income Tax Slabs in FY 2023-24 (AY 2024-25) for HUF and Individuals
As per the Budget 2023 announcement, the new income tax slab rates for FY 2023-24 for individuals and HUF are as follows:
| Annual Taxable Income | New Tax Regime | Old Tax Regime |
|---|---|---|
| Up to Rs. 2.5 lakh | Exempt | Exempt |
| Over Rs. 2.5 lakh to Rs. 3 lakh | Exempt | 5% |
| Over Rs. 3 lakh to Rs. 5 lakh | 5% | 5% |
| Over Rs. 5 lakh to Rs. 6 lakh | 5% | 20% |
| Over Rs. 6 lakh to Rs. 9 lakh | 10% | 20% |
| Over Rs. 9 lakh to Rs. 10 lakh | 15% | 20% |
| Over Rs. 10 lakh to Rs. 12 lakh | 15% | 30% |
| Over Rs. 12 lakh to Rs. 15 lakh | 20% | 30% |
| Above Rs. 15 lakh | 30% | 30% |
Income Tax Slab for Super Se-nior Citizens in AY 2024-25 (FY 2023-24)
According to the Income Tax Act, 1961, taxpayers above 80 years of age are considered super se-nior citizens and benefit from a higher exemption limit of Rs. 5 lakh under the old tax regime. This benefit is not available for those opting for the new tax regime. The applicable income tax slabs for FY 2023-24 (AY 2024-25) under both regimes are as follows tax slab 2023-24:
| Annual Taxable Income | New Tax Regime | Old Tax Regime |
|---|---|---|
| Up to Rs. 3 lakh | Exempt | Exempt |
| Over Rs. 3 lakh to Rs. 5 lakh | 5% | Exempt |
| Over Rs. 5 lakh to Rs. 6 lakh | 5% | 20% |
| Over Rs. 6 lakh to Rs. 9 lakh | 10% | 20% |
| Over Rs. 9 lakh to Rs. 10 lakh | 15% | 20% |
| Over Rs. 10 lakh to Rs. 12 lakh | 15% | 30% |
| Over Rs. 12 lakh to Rs. 15 lakh | 20% | 30% |
| Above Rs. 15 lakh | 30% | 30% |
Super se-nior citizens can choose between the new tax regime and the old tax regime. The old tax regime offers a higher exemption limit of Rs. 5 lakh, unlike the new regime, which offers the same exemption limit and tax rates to all eligible taxpayers. Additionally, the new tax regime does not provide common deductions and exemptions such as Section 80C, Section 80D, and Section 24.
Income Tax Slabs & Rates for Senior Citizens in AY 2024-25 (FY 2023-24)
Taxpayers aged between 60 years and less than 80 years are considered se-nior citizens under the Income Tax Act, 1961, and have a higher exemption limit under the old tax regime compared to those under 60. This benefit is not available under the new tax regime. Below are the income tax slabs and rates for se-nior citizens for FY tax slab 2023-24:
| Annual Taxable Income | New Tax Regime | Old Tax Regime |
|---|---|---|
| Up to Rs. 3 lakh | Exempt | Exempt |
| Over Rs. 3 lakh to Rs. 5 lakh | 5% | 5% |
| Over Rs. 5 lakh to Rs. 6 lakh | 5% | 20% |
| Over Rs. 6 lakh to Rs. 9 lakh | 10% | 20% |
| Over Rs. 9 lakh to Rs. 10 lakh | 15% | 20% |
| Over Rs. 10 lakh to Rs. 12 lakh | 15% | 30% |
| Over Rs. 12 lakh to Rs. 15 lakh | 20% | 30% |
| Above Rs. 15 lakh | 30% | 30% |
Tax is taken depending on the amount, like up to Rs. 3,00,000 is zero, from Rs. 3,00,000 to Rs. 6,00,000 is 5%, from Rs. 6,00,000 to Rs. 9,00,000 is 10%, from Rs. 9,00,000 to Rs. 12,00,000 is 15%, from Rs. 12,00,000 to Rs. 15,00,000 is 20%, and over Rs. 15,00,000 is 20%.
What is Section 80D of the Income Tax Act? Section 80D of the Income Tax Act, 1961 gives tax deductions of up to ₹25,000 on health insurance premiums paid in a year. The tax deduction limit goes up to ₹50,000 per year for se-nior citizens who are 60 years old and older.
To calculate federal taxable income for individual filers, start by subtracting all income from “above the line” deductions and exemptions. This includes certain retirement plan contributions, higher education expenses, student loan interest, and alimony payments, among others.
