📊 New Income Tax Slab For FY 2023-24

💼 Introduction

The Government of India imposes income tax on both salaried and self-employed individuals across all age groups. Understanding your applicable tax slab not only simplifies tax calculation and filing but also allows you to benefit from deductions and exemptions.

Table of Contents

📢 Key Changes in Income Tax for FY 2023-24

In a significant relief for taxpayers, the Union Budget 2023-24 has introduced several changes to personal income tax. The government has reduced the number of tax slabs to five and increased the tax exemption limit to INR 3 lakh. These changes are part of the new default tax regime, with an option for taxpayers to continue using the old tax scheme.

🔄 Tax Regime Options

Taxpayers have the choice between two income tax regimes: the old and new tax regimes. The old regime offers nearly 70 income tax deductions under various sections of income tax rules, while the new regime features fixed tax rates, which are generally lower.

💰 Income Tax Rates for Different Age Groups

Forbes Advisor India has categorized income tax rates for individuals below 60 years, senior citizens aged 60-80, and super senior citizens above 80. Taxation varies based on the chosen regime and is influenced by investments and returns on those investments.

📊 New Tax Regime 2023-24 (Default)

Net Annual Income Range	New Regime Tax Rate
INR 0-3 lakh	Nil
INR 3-6 lakh	5%
INR 6-9 lakh	10%
INR 9-12 lakh	15%
INR 12-15 lakh	20%
Above INR 15 lakh	30%

*Taxpayers earning up to INR 7 lakh annually are entitled to a rebate.
*The highest surcharge rate on income above INR 5 crore will be reduced from 37% to 25% under the new tax regime.

📊 Old Tax Regime

Net Annual Income Range	Old Regime Tax Rate
Up to INR 2.5 lakh	Nil
INR 2.5 lakh to INR 5 lakh	5% (tax rebate u/s 87A available)
INR 5 lakh to INR 7.5 lakh	20%
INR 7.5 lakh to INR 10 lakh	20%
INR 10 lakh to INR 12.5 lakh	30%
INR 12.5 lakh to INR 15 lakh	30%
Above INR 15 lakh	30%

💼 Income Tax Slab in FY 2023-24 for Senior Citizens

👴 SENIOR CITIZENS (Above 60 to 80 years)

Net Income Range	Old Regime Tax Rate	New Regime Tax Rate
INR 2.5 lakh to INR 3 lakh	Nil	5%
INR 3 lakh to INR 5 lakh	5% (tax rebate u/s 87A available)	5% (tax rebate u/s 87A available)
INR 5 lakh to INR 7.5 lakh	20%	10%
INR 7.5 lakh to INR 10 lakh	20%	15%
INR 10 lakh to INR 12.5 lakh	30%	20%
INR 12.5 lakh to 15 lakh	30%	25%
Above INR 15 lakh	30%	30%

📊 Income Tax Slab in FY 2023-24 for Super Senior Citizens

👴👴 SENIOR CITIZENS (Above 80 years and above)

Net Income Range	Old Regime Tax Rate	New Regime Tax Rate
Up to INR 2.5 lakh	Nil	Nil
INR 2.5 lakh to INR 5 lakh	Nil	5%
INR 5 lakh to INR 7.5 lakh	20%	10%
INR 7.5 lakh to INR 10 lakh	20%	15%
INR 10 lakh to INR 12.5 lakh	30%	20%
INR 12.5 lakh to 15 lakh	30%	25%
Above INR 15 lakh	30%

Super senior citizens (above 80 years of age) are not eligible for income tax deductions under section 87A.

For more information visit – official Income Tax website –Home | Income Tax Department

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1. What are the significant changes in the income tax slabs for FY 2023-24?

In FY 2023-24, the government has reduced the number of tax slabs to five and increased the tax exemption limit to INR 3 lakh. These changes are part of the new default tax regime.

2. Can I choose between different tax regimes?

Yes, taxpayers have the option to choose between the old and new tax regimes. The old regime allows for various income tax deductions, while the new regime offers fixed tax rates.

7. How can I determine the applicable tax regime for my income?

You can choose the tax regime that suits you best based on your financial situation and tax deductions you wish to avail of. Consult with a tax advisor or use the government’s guidelines to make an informed decision.

3. What are the tax rates for individuals below 60 years in the new tax regime for FY 2023-24?

In the new tax regime, the rates are as follows:Nil for income up to INR 3 lakh
5% for income between INR 3-6 lakh
10% for income between INR 6-9 lakh
15% for income between INR 9-12 lakh
20% for income between INR 12-15 lakh
30% for income above INR 15 lakh

Are there any rebates or surcharges applicable in the new tax regime?

Taxpayers earning up to INR 7 lakh annually are entitled to a rebate. Additionally, the highest surcharge rate on income above INR 5 crore will be reduced from 37% to 25% under the new tax regime.