Income Tax Slabs in India for FY 2023-24 (AY 2024-25)
Income Tax Slabs in India for FY 2023-24 (AY 2024-25)
This article explains income tax slabs in India for 2023-24 (AY 2024-25). You have two options for filing your taxes: the new or the old tax regime.
New Tax Regime
The new tax regime is the default option unless you choose the old one. It offers lower tax rates but eliminates certain deductions and exemptions.
Income Tax Slabs for Individuals (New Regime):
|
Income Slab |
Tax Rate |
|
Up to Rs. 3,00,000 |
Nil |
|
Rs. 3,00,001 - Rs. 6,00,000 |
5% |
|
Rs. 6,00,001 - Rs. 9,00,000 |
10% |
|
Rs. 9,00,001 - Rs. 12,00,000 |
15% |
|
Rs. 12,00,001 - Rs. 15,00,000 |
20% |
|
Above Rs. 15,00,000 |
30% |
Old Tax Regime
The old tax regime allows for various deductions and exemptions, but it generally has higher tax rates.
Income Tax Slabs for Individuals (Old Regime):
|
Age Group |
Income Slab |
Tax Rate |
|
Up to 60 years |
Up to Rs. 2,50,000 |
Nil |
|
60-80 years |
Up to Rs. 3,00,000 |
Nil |
|
80 years and above |
Up to Rs. 5,00,000 |
Nil |
|
All ages |
Rs. 2,50,001 - Rs. 5,00,000 |
5% |
|
All ages |
Rs. 5,00,001 - Rs. 10,00,000 |
20% |
|
All ages |
Above Rs. 10,00,000 |
30% |
Tax Slabs for Domestic Companies:
|
Company Type |
Tax Rate (Old Regime) |
Tax Rate (New Regime) |
|
Under Section 115BAB (registered after Oct 1, 2019 & manufacturing before Mar 31, 2023) |
- |
15% |
|
Under Section 115BAA (no deductions) |
- |
22% |
|
Under Section 115BA (registered after Mar 1, 2016 & manufacturing) |
25% |
25% |
|
Turnover less than Rs. 400 crore |
25% |
25% |
|
Others |
30% |
30% |
Surcharge for Companies:
· 7% of income tax for income exceeding Rs. 1 crore.
· 12% of income tax for income exceeding Rs. 10 crore.
· 10% of income tax for companies under Section 115BAA & 115BAB.
Additional Health & Education Cess Rate: 4%
Tax Rate for Partnership Firms/LLPs: 30% (surcharge applicable for income above Rs. 1 crore, health and education cess also applies).
Choosing Between New and Old Regimes
Carefully consider the deductions and exemptions you are eligible for before choosing a tax regime.
Changes Due to Budget 2023
The Budget 2023 increased the basic exemption limit and introduced a standard deduction for salaried individuals and pensioners under the new tax regime. It also reduced the highest surcharge rate and increased the rebate under Section 87A.