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Income Tax Slab 2023-24
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Income Tax Slabs in FY 2023-24 (AY 2024-25) for HUF and Individuals
As per the Budget 2023 announcement, income tax slab rates FY 23-24 under old regime for individuals aged less than 60 years and new tax regime for every individual is as below:
| Annual Taxable Income | New Tax Regime | Old Tax Regime |
|---|---|---|
| Up to Rs.2.5 lakh | Exempt | Exempt |
| Over Rs.2.5 lakh to Rs.3 lakh | Exempt | 5% |
| Over Rs.3 lakh to Rs. 5 lakh | 5% | 5% |
| Over Rs.5 lakh to Rs.6 lakh | 5% | 20% |
| Over Rs.6 lakh to Rs. 9 lakh | 10% | 20% |
| Over Rs.9 lakh to Rs.10 lakh | 15% | 20% |
| Over Rs.10 lakh to Rs.12 lakh | 15% | 30% |
| Over Rs.12 lakh to Rs.15 lakh | 20% | 30% |
| Above Rs.15 lakh | 30% | 30% |
However, do keep in mind that a majority of tax saving investments including life insurance tax benefits cannot be claimed if one opts for the new tax regime. Further, new slab rates have been announced in Budget 2024 under the new tax regime income tax slab for FY 24-25, which can decrease your tax burden even further.
Income Tax Slab for Super Senior Citizens in AY 2024-25 (FY 2023-24)
As per the Income Tax Act, 1961, tax payers above 80 years of age are considered as super senior citizens and they get a higher exemption limit of Rs.5 lakh under the old tax regime. This benefit is however not applicable to super senior citizens opting for the new tax regime slabs in FY 2023-24. Super senior citizens will be required to pay taxes as per the income tax slab FY 2023-24 & AY 2024-25 under the old tax regime and new tax regime as mentioned below:
| Annual Taxable Income | New Tax Regime | Old Tax Regime |
|---|---|---|
| Up to Rs.3 lakh | Exempt | Exempt |
| Over Rs.3 lakh to Rs. 5 lakh | 5% | Exempt |
| Over Rs.5 lakh to Rs.6 lakh | 5% | 20% |
| Over Rs.9 lakh to Rs.10 lakh | 15% | 20% |
| Over Rs.6 lakh to Rs.9 lakh | 10% | 20% |
| Over Rs.10 lakh to Rs.12 lakh | 15% | 30% |
| Over Rs.12 lakh to Rs.15 lakh | 20% | 30% |
| Above Rs.15 lakh | 30% | 30% |
Like other individual tax payers, super senior citizens can also opt for the income tax slab FY 2024 under either the new tax regime or the old tax regime. However, as you can see, the old tax regime offers a higher exemption limit of Rs. 5 lakh as compared to the new tax regime which offers the same exemption limit and income tax slab rates to all eligible tax payers. Moreover, the new tax regime 2023 does not provide most common old regime deductions and exemptions like Section 80C, Section 80D, Section 24 and many more.
Income Tax Slabs & Rates for Senior Citizens in AY 2024-25 (FY 2023-24)
Tax payers aged between 60 years and less than 80 years of age are considered as Senior Citizens as per the Income Tax Act, 1961 and get a higher exemption limit under the old tax regime than taxpayers aged less than 60 years. However, this benefit is not available under the new tax regime AY 2024-25. Let’s compare the income tax slabs and rates for senior citizen as per the old tax regime and new tax regime for FY 2023-24:
| Annual Taxable Income | New Tax Regime | Old Tax Regime |
|---|---|---|
| Up to Rs.3 lakh | Exempt | Exempt |
| Over Rs.3 lakh to Rs. 5 lakh | 5% | 5% |
| Over Rs.5 lakh to Rs.6 lakh | 5% | 20% |
| Over Rs.6 lakh to Rs. 9 lakh | 10% | 20% |
| Over Rs.9 lakh to Rs.10 lakh | 15% | 20% |
| Over Rs.10 lakh to Rs.12 lakh | 15% | 30% |
| Over Rs.12 lakh to Rs.15 lakh | 20% | 30% |
| Above Rs.15 lakh | 30% | 30% |
Income Tax Slab for AOP, BOI & AJP in AY 2024-25
Taxpayers other than Individuals and HUF like Association of Persons (AOP), Body of Individuals (BOI) and Artificial Judicial Person (AJP) currently do not qualify for the new tax regime. As, a result, the income tax slabs and rates for these taxpayers in AY 2024-25 are the same as the old tax regime slabs for AY 2023-24 as shown below:
| Net Taxable Income | Income Tax Rate FY 2023-24 |
|---|---|
| Up to Rs. 2.5 lakh | Exempt |
| Over Rs. 2.5 lakh up to Rs. 5 lakh | 5% of income exceeding Rs. 2.5 lakh |
| Over Rs. 5 lakh up to Rs. 10 lakh | Rs. 12,500 + 20% of income exceeding Rs. 5 lakh |
| Over Rs. 10 lakh | Rs. 1,12,500 + 30% of income exceeding Rs. 10 lakh |
Surcharge on Income Tax for FY 23-24
The Budget 2023 announcement also included a decrease in the highest surcharge only in new tax regime applicable to income tax from 37% in AY 23-24 to 25% in AY 24-25. Surcharge is levied on income tax amount if the total income of the tax payer exceeds a specified annual income limit. Here is a comparison of the surcharge rates for the old tax regime vs new tax regime in FY 23-24:
| Income | Surcharge Rate in Old tax regime | Surcharge Rate in New Tax regime |
|---|---|---|
| Less than Rs.50 lakh | NIL | NIL |
| Rs.50 lakh – Rs.1crore | 10% | 10% |
| Rs.1 crore – Rs.2 crore | 15% | 15% |
| Rs.2 crore – Rs.5 crore/span> | 25% | 25% |
| Rs.5 crore – Rs.10 crore | 37% | 25% |
| More than Rs.10 crore | 37% | 25% |
** Note:** 25% and 37% surcharge on income tax is not levied from taxable income under Section 111A, 112A and 115AD of the Income Tax Act, 1961. In such cases, the surcharge on income tax is 15%. However, there is marginal relief available in certain cases on surcharge of income tax.
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ARN NO: Jul23/Bg/06J
incometaxindia.gov.in/news/finance-bill-2023-highlights.pdf
economictimes.indiatimes.com/wealth/tax/new-income-tax-slabs-for-new-tax-regime-announced-in-budget-2023/articleshow/97508804.cms
www.incometax.gov.in/iec/foportal/help/non-company/return-applicable-0#:~:text=10%25%20%2D%20Taxable%20income%20above%20%E2%82%B9,income%20above%20%E2%82%B9%205%20crore
www.cnbctv18.com/personal-finance/budget-2023-reduces-surcharge-to-25-under-new-tax-slab--check-who-benefits-15838051.htm
incometaxindia.gov.in/tutorials/2%20tax%20rates.pdf
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