Income Tax Slabs for FY 2023-24

Income Tax Slabs for FY 2023-24, Latest Income Tax Slab and Rates – FY 2023-24, Income Tax Slabs for FY 2023-24 (New & Old Regime).

The Income Tax Department is the largest revenue generator for the Central Government, Income tax is a tax levied on individuals or organizations in respect of the income or profits they earn, Income tax is generally calculated as the product of the tax rate over taxable income, As the taxable income increases, the tax rate increases.

Currently Indian taxpayers can choose between the old tax system and the new tax system, The Central Government levies tax on certain income of individuals, Hindu Undivided Families (HUFs), Companies, Firms, LLPs, Societies, Institutions, Local Authorities and other juristic persons.

Tax rates may vary depending on the type or characteristics of taxpayers and type of income, Personal income is often taxed at progressive rates, Tax levied on companies is commonly known as corporate tax and is usually levied at a flat rate.

Income Tax Slabs

Income Tax Slabs in India are announced every year by the Finance Minister, some changes have been introduced to the current Income Tax Slab in the latest budget, Currently there are two different income tax regimes, both in the new regime and the old regime, taxpayers can avail tax benefits.

The Finance Minister has announced that under the new tax system, the income tax rebate has been increased from the earlier limit of Rs.5 lakh to Rs.7 lakh, Apart from this, the rate of surcharge on income of Rs.5 crore and above has been reduced from 37% to 25%.

The finance minister presented the budget for the coming year, which included some changes in the new tax system, The Finance Minister reduced the number of tax slabs and extended standard deduction to the salaried class and pensioners as well, The new tax regime and changes can be seen in the table below.

Income Tax Slabs as per Union Budget FY 2023-24

1. In the new tax system, the tax rates will be the same across all categories.
2. Hindu Undivided Family and Persons below 60 years, Senior Citizens 60 to 80 years and Super Senior Citizens above 80 years.
3. Senior and super senior citizens will not benefit under the new tax regime as the basic exemption limit is increased.
4. Individuals with net taxable income up to ₹ 7 lakh are eligible for tax concession u/s 87A under the new tax regime.
5. The rebate limit will be ₹ 5 lakh for individuals opting to pay old tax.

Income Tax Slab Old Tax Regime Rate FY 2023-24 for Individuals below 60 years and HUF

1. The old tax system distinguished between three age groups of tax payers.
2. Individuals, HUF and persons below 60 years of age for the financial year 2023-24.
3. Income tax exemption limit for all NRIs is up to ₹ 2.5 lakh.
4. An additional 4% health and education cess is applicable on the tax amount.

Income Tax Slabs for Individuals aged between 60 years and 80 years

1. For the financial year 2023-24, the income tax exemption limit for senior citizens is up to ₹3 lakh.
2. An additional 4% health and education cess is applicable on the tax amount.

Income Tax Slabs for Individuals above 80 years

1. For the financial year 2023-24, the exemption limit on income tax for super senior citizens is up to ₹5 lakh.
2. An additional 4% health and education cess is applicable on the tax amount.

Surcharge Rates – FY 2023-24

1. When the income of the assessee exceeds the limits specified by the Income Tax Department.
2. A surcharge is levied on the amount of income tax, the rates for surcharge are listed below.
3. No enhanced surcharge of 25% & 37% on income chargeable to tax under sections 111A, 112A and 115AD.
4. Therefore, the maximum rate of surcharge on tax payable on such income is 15%.
5. Maximum rate of surcharge on tax payable on dividend income or capital gain referred to in section 112 is 15%.
6. The rate of surcharge for Association of Persons (AOP) with all members as a company is limited to 15%.
7. It should be noted that a corresponding marginal relief from surcharge is available.