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The document discusses the income tax slabs in India for the financial years 2022-23 and 2023-24 under both the new and old tax regimes. Some key points include: 1) Income tax rates are divided into slabs and increase as income increases, allowing for a progressive tax system. 2) The new tax regime offers lower rates but limits certain exemptions and deductions. 3) Tax rates under the new regime range from 5-30% in slabs up to Rs 15 lakh income and above that it is 30%. 4) Surcharge and health cess are added to the tax liability depending on the amount of total income.

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Ramesh Babu
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37 views

ITR Document

The document discusses the income tax slabs in India for the financial years 2022-23 and 2023-24 under both the new and old tax regimes. Some key points include: 1) Income tax rates are divided into slabs and increase as income increases, allowing for a progressive tax system. 2) The new tax regime offers lower rates but limits certain exemptions and deductions. 3) Tax rates under the new regime range from 5-30% in slabs up to Rs 15 lakh income and above that it is 30%. 4) Surcharge and health cess are added to the tax liability depending on the amount of total income.

Uploaded by

Ramesh Babu
Copyright
© © All Rights Reserved
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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1.

HOME
2.
3. INCOME-TAX
4.
5. INCOME TAX SLABS FY 2023-24 (AY 2024-25), FY 2022-23 (AY 2023-24) – NEW & OLD REGIME TAX RATES

Income Tax Slabs FY 2023-24


(AY 2024-25), FY 2022-23 (AY
2023-24) – New & Old Regime
Tax Rates
Updated on: Jun 12th, 2023
|
65 min read

Income tax is levied on the income earned by all the individuals, HUF,
partnership firms, LLPs and Corporates as per the Income Tax Act of India.
In the case of individuals, tax is not levied at a flat rate but as per the slab
system. If their income is above the minimum threshold limit (known as the
basic exemption limit), then people will have to file income tax returns and
pay the applicable taxes. The income tax slabs are different under the old
and the new tax regimes. Further, the slab rates for individuals opting for
the old tax regime are divided into three categories:

 Individuals (Indian Residents aged less than 60 years + All


the non-residents will be covered in this grouo irrespective of
their age)

 Resident Senior citizens (60 to 80 years of age)


 Resident Super senior citizens (aged more than 80 years)

1. What Is Income Tax Slab?


In India, the Income Tax applies to individuals based on a slab system,
where different tax rates are assigned to different income ranges. This
means that as a person's income increases, the tax rates also increase.
This type of taxation allows for a fair and progressive tax system in the
country. The income tax slabs are revised periodically, typically during each
budget. These slab rates vary for different groups of taxpayers. Let us take
a look at all the slab rates applicable for FY 2022-23 (AY 2023-24) and FY
2023-24(AY 2024-25).

2. Income Tax Slab Rates For FY


2022-23 (AY 2023-24)

a. New Tax regime – Income tax slab


rate for FY 2022-23 (AY 2023-24)

In this new regime, taxpayers has an OPTION to choose either :

 To pay income tax at lower rates as per New Tax regime on the
condition that they forgo certain permissible exemptions and
deductions available under income tax, Or

 To continue to pay taxes under the existing tax rates. The


assessee can avail rebates and exemptions by staying in the old
regime and paying tax at the existing higher rate.
Income Tax Slab Rate FY 2022-23
(AY 2023-24) – Applicable For New
Tax Regime

New Tax Regim


Income Slabs
FY 2022-23 (AY 20

₹0 - ₹2,50,000 –

5%    
₹2,50,000 - ₹5,00,000
(tax rebate u/s 87A is av

₹5,00,000 - ₹7,50,000 10%

₹7,50,000 - ₹10,00,000 15%

₹10,00,000 - ₹12,50,000 20%

₹12,50,000 - ₹15,00,000 25%

>₹15,00,000 30%

Difference of tax slab rates between New tax regime vs Old Tax regime 

NOTE:
 Please note that the tax rates in the New tax regime is
the same for all categories of Individuals, i.e. Individuals,
Senior citizens and Super senior citizens. Hence no increased
basic exemption limit benefit will be available to senior and
super senior citizens in the New Tax regime.

 Individuals with Net taxable income less than or equal to Rs 5


lakh will be eligible for tax rebate u/s 87A i.e. tax liability will be
NIL in both – New and old/existing tax regimes.        
*In Budget 2023, rebate under new regime has been increased
and therefore, income upto Rs 7 lakh will be tax-free from FY
2023-24.

 Basic exemption limit for NRIs is of Rs 2.5 Lakh irrespective of


age.

 Surcharge: In case the income exceeds a certain threshold,


surcharge will be applicable

 Surcharge rates are as below:

 10% of Income tax if total income > Rs.50


lakh

 15% of Income tax if total income > Rs.1


crore

 25% of Income tax if total income > Rs.2


crore

 37% of Income tax if total income > Rs.5


crore        
*In Budget 2023, the highest surcharge
rate of 37% has been reduced to 25%
under the new tax regime. (applicable
from 1st April 2023)

 Surcharge rates of 25% or 37%, will not be


applicable to the income which is taxable under
sections 111A (Short Term Capital Gain on
Shares), 112A (Long Term Capital Gain on Shares),
and 115AD (Tax on income of Foreign Institutional
Investors). Therefore, the highest surcharge rate on
the tax payable for such incomes will be 15%.

 From Assessment Year 2023-24, the maximum


surcharge rate on tax payable for dividend income or
capital gain mentioned in Section 112 will be 15%.
The surcharge rate for an Association of Persons
(AOP) consisting entirely of companies will also be
limited to 15%.

 Additional Health and Education cess at the rate of 4% will be


added to the income tax liability + surcharge in all cases

b. Income tax slab rate for Old Tax


regime – FY 2022-23 (AY 2023-24)
Select your Age Group:                                                                                 
Less Than 60 Years Old

Income tax slabs for individual aged below 60


years & HUF
Income Slabs Individuals Below The Age Of 60 Years a

Up to Rs 2.5 lakh NIL

Rs 2.5 lakh - Rs 5 lakh 5%

Rs 5 lakh - Rs 10 lakh 20%

> Rs 10 lakh 30%

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