The taxation system in India is distinguished by a gradual point of view, where the amount of tax payable rises with the income. In order to clear the way for the future, income tax slabs have been launched in the country. The relevance of these slabs is affected by many factors. The residential status of the taxpayer, the level of income earned, the category of the taxpayer, and their age are some of the factors that affect these slabs. It is usual to analyse the income tax rates in India every year after the budget is announced. The income tax rates have undergone some noteworthy adjustments this year, according to the Finance Ministry. The income tax slab for FY 2023–24 as well as information on the old and new tax regimes can be found on this page if you’re looking for information on the rates and slabs of income tax that will be in effect in India for the financial year (FY) 2023–24 or assessment year (AY) 2024–25.
What Are the Slab Rates for Income Tax in India?
The Indian Income Tax System employs numerous Income Tax Slabs to collect taxes from both individuals and non-individuals on their income.
Income Tax Slab Rates
- Depending on the applicable slab rate, which changes annually, the tax is applied to a range of income.
- Every year, the Finance Minister makes the income tax slab rates public in the Union Budget.
Division of Income Tax Slab Rates
- By Age
- Non-resident in India
- For Hindu Undivided Family (HUF)/ Association of Persons (AOP)/Body of Individual (BOI)/ Artificial Judicial Person (AJP)
- On Non-individuals
- Partnership Firms or LLPs
- Domestic Company
- Foreign Company
- Co-operative Societies
- Local Authorities
|Old I-T Regime for FY 2022-23 and FY 2023-24||Before Budget 2023 (until 31st Mar 2023)||New I-T Regime After Budget 2023 (From 1st April 2023)|
|Range of Income||Tax Rate|
|INR 0-INR 2,50,000||–||–|
|INR 2,50,000- INR 3,00,000||5%||5%||–|
|INR 3,00,000- INR 5,00,000||5%||5%||5%|
|INR 5,00,000- INR 6,00,000||20%||10%||5%|
|INR 6,00,000- INR 7,50,000||20%||15%||10%|
|INR 7,50,000- INR 9,00,000||20%||15%||10%|
|INR 9,00,000- INR 10,00,000||20%||15%||15%|
|INR 10,00,000- INR 12,00,000||30%||20%||20%|
|INR 12,00,000- INR 12,50,000||30%||20%||20%|
|INR 12,50,000- INR 15,00,000||30%||25%||20%|
|Above INR 15,00,000||30%||30%||30%|
Read Also: What is the Reality of New Income Tax Regime for Taxpayers?
Essential Information About New & Old Tax Regimes
- Under the new tax system, the tax rates are identical for all individual tax brackets.
- Citizens who are elderly or extremely elderly will not benefit from a higher basic exemption level under the New Tax framework.
- In both the new and the old/existing tax regimes, individuals with net taxable income of up to Rs 5 lakh will be qualified for a tax rebate under Section 87A.
- Regardless of age, the baseline exemption threshold for NRIs is Rs. 2.5 Lakh.
- In every situation, an additional 4% Health and Education Cess will be added to the income tax obligation.
- Surcharges are applied for all of the aforementioned categories at the tax rates listed below:
- 10% of income tax if total income is more than Rs. 50 lakh
- 15% of income tax if total income is more than Rs. 1 crore
- 25% of income tax if total income is more than Rs. 2 crore
- 37% of income tax if total income is more than Rs. 5 crore
- In the Budget 2023, the surcharge rate of 37% which was the highest now has been reduced to 25% under the new tax system which will be applicable from 1st April 2023.
Final Take: In comparison to the previous year, there have been some amendments to the Income Tax Slab Rates for the Financial Year 2023–24. All categories of taxpayers pay the same rates of tax under the New Tax Regime. It does not give increased basic exemption advantages to senior and super-senior people. The surcharge rates have also been amended which lowers the surcharge rate from 37% (which was the highest) to 25%. It’s crucial for taxpayers to comprehend the new rates and rules so they can budget their money and make the necessary tax payments.
Note: In India, taxpayers have two important obligations: income tax returns and GST returns. While GST is an indirect tax placed on the sale of goods and services, income tax is a direct tax levied on the income of individuals and corporations. The procedures of filing and filing deadlines for each tax are different.
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