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Income Tax Slabs FY 2023-24 & AY 2024-25 (New & Old Regime Tax Rates)

By Ektha Surana

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Updated on: Jun 7th, 2024

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106 min read

The income tax slabs are different under the old and the new tax regimes. Further, the slab rates under the old tax regime are divided into three categories

  • Indian Residents aged < 60 years + All the non-residents 
  • 60 to 80 years: Resident Senior citizens
  • More than 80 years: Resident Super senior citizens

What is an 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. As the 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 2023-24(AY 2024-25).

Income Tax Slabs for FY 2023-24

For Old Regime, a tax rebate up to Rs.12,500 is applicable if the total income does not exceed Rs 5,00,000 (not applicable for NRIs)

NOTE:

  • Income tax exemption limit is
    • up to Rs 2,50,000 for Individuals, HUF below 60 years aged and NRIs.
    • up to Rs 3,00,000 for senior citizens aged above 60 years but less than 80 years.
    • up to Rs 5,00,000 for super senior citizens aged above 80 years.
  • Surcharge and cess will be applicable over and above the tax rates

However, under the new tax regime rebate is up to Rs.25,000 is applicable if the total income does not exceed Rs 7,00,000. (not applicable for NRIs)

* Tax rebate equivalent to an amount, tax payable is when the total income exceeds Rs 7,00,000. (not applicable for NRIs)

NOTE:

  • Income tax exemption limit is up to Rs 3,00,000 for Individuals, HUF opting for the new regime.
  • Surcharge and cess will be applicable over and above the tax rates

Comparison of Tax Rates Under New Tax Regime & Old Tax Regime 

 

Old Tax Regime (FY 2022-23 and FY 2023-24)

New Tax Regime

Income Slabs

Age < 60 years & NRIs

Age of 60 Years to 80 years

Age above 80 Years

FY 2022-23

FY 2023-24

Up to ₹2,50,000

NIL

NIL

NIL

NIL

NIL

₹2,50,001 - ₹3,00,000

5%

NIL

NIL

5%

NIL

₹3,00,001 - ₹5,00,000

5%

5%

NIL

5%

5%

₹5,00,001 - ₹6,00,000

20%

20%

20%

10%

5%

₹6,00,001 - ₹7,50,000

20%

20%

20%

10%

10%

₹7,50,001 - ₹9,00,000

20%

20%

20%

15%

10%

₹9,00,001 - ₹10,00,000

20%

20%

20%

15%

15%

₹10,00,001 - ₹12,00,000

30%

30%

30%

20%

15%

₹12,00,001 - ₹12,50,000

30%

30%

30%

20%

20%

₹12,50,001 - ₹15,00,000

30%

30%

30%

25%

20%

₹15,00,000 and above

30%

30%

30%

30%

30%

Income Tax Slab Rates For FY 2022-23 (AY 2023-24)

a. New Tax regime until 31st March 2023 

Income Slabs

Individuals (for all age categories)

Up to Rs 2,50,000

Nil

Rs 2,50,001 - Rs 5,00,000*

5%

Rs 5,00,001 - Rs 7,50,000

10%

Rs 7,50,001 - Rs 10,00,000

15%

Rs 10,00,001 - Rs 12,50,000

20%

Rs 12,50,001 - Rs 15,00,000

25%

Rs 15,00,001 and above

30%

* Tax rebate up to Rs.12,500 is applicable if the total income does not exceed Rs 5,00,000  (not applicable for NRIs)

Refer to the above image for the rates applicable to FY 2023-24 (AY 2024-25) for the upcoming tax filing season.

b. Old Tax regime                                    

Income tax slabs for individuals aged below 60 years & HUF

Income Slabs

Individuals of Age < 60 Years and NRIs

Up to Rs 2,50,000

NIL

Rs 2,50,001 - Rs 5,00,000

5%

Rs 5,00,001 to Rs 10,00,000

20%

Rs 10,00,001 and above

30%

NOTE:

  • The income tax exemption limit is up to Rs 2,50,000 for Individuals, HUF below 60 years aged, and NRIs.
  • Surcharge and cess will be applicable.

Income tax slab for individuals aged above 60 years to 80 years

Income Slabs

Individuals of Age 60 Years to 80 Years

Up to Rs 3,00,000

NIL

Rs 3,00,001 - Rs 5,00,000

5%

Rs 5,00,001 to Rs 10,00,000

20%

Rs 10,00,001 and above

30%

NOTE:

  • The income tax exemption limit is up to Rs.3 lakh for senior citizens aged above 60 years but less than 80 years.
  • Surcharge and cess will be applicable 

Income tax slab for Individuals aged more than 80 years

Income Slabs

Individuals of Age above 80 Years

Up to Rs 5,00,000

NIL

Rs 5,00,001 to Rs 10,00,000

20%

Rs 10,00,001 and above

30%

NOTE:

  • Income tax exemption limit is up to Rs 5 lakh for super senior citizen aged above 80 years.
  • Surcharge and cess will be applicable 

Revised Income Tax Slab Rate AY 2024-25 (FY 2023-24)– For New Regime

Income Slabs

Income Tax Rates       
FY 2023-24 (AY 2024-25)

Up to Rs 3,00,000

Nil

Rs 3,00,000 to Rs 6,00,000

5% on income which exceeds Rs 3,00,000 

Rs 6,00,000 to Rs 900,000

Rs. 15,000 + 10% on income more than Rs 6,00,000

Rs 9,00,000 to Rs 12,00,000

Rs. 45,000 + 15% on income more than Rs 9,00,000

Rs 12,00,000 to Rs 1500,000

Rs. 90,000 + 20% on income more than Rs 12,00,000

Above Rs 15,00,000

Rs. 150,000 + 30% on income more than Rs 15,00,000

What are the Major Procedural Changes in Filing of Income Tax Return from FY 2022-23 to FY 2023-24?

  1. For FY 2022-23, the default regime used to be the Old tax regime, if you wanted to go for the New tax regime, you were required to submit Form 10-IE. After the due date, you have to mandatorily file under the old regime only. 
  2. For FY 2023-24, the default regime changed to the new tax regime, now if you want to file the return under the old tax regime by claiming all the deductions, exemptions, and losses, then you have to file Form 10-IEA within the due date. After the due date, you have to mandatorily file under the new regime by giving up on most of the deductions and exemptions and all losses.

How to Calculate Income Tax from Income Tax Slabs?

Illustration 1: Rohit has a total taxable income of Rs 8,00,000. This income has been calculated by including income from all sources, such as salary, rental income, and interest income. Deductions under Section 80 have also been reduced. Rohit wants to know his tax dues as per the old regime for FY 2023-24 (AY 2024-2025).

Income Tax Slabs

Tax Rate

Tax Amount

*Income up to Rs 2,50,000

No tax

-

Income from Rs 2,50,000 – Rs 5,00,000

5% (Rs 5,00,000 – Rs 2,50,000)

Rs 12,500

Income from Rs 5,00,000 – 10,00,000

20% (Rs 8,00,000 – Rs 5,00,000)

Rs 60,000

Income more than Rs 10,00,000

30%

-

Tax

 

Rs 72,500

Cess

4% of Rs 72,500

Rs 2,900

Total tax in FY 2023-24 (AY 2024-25)

Rs 75,400

Note:

Please note that Rohit is an individual taxpayer assessee having an income tax exemption of Rs 2,50,000. For other taxpayer assessees, i.e. senior citizens and super senior citizens, the Income-tax limit for availing the exemption would be Rs 3,00,000 & Rs 5,00,000, respectively.

Individuals with net taxable income less than or equal to Rs 5 lakh will be eligible for tax rebate u/s 87A under the old tax regime, i.e. tax liability will be NIL.

Important Points to note if you select the new tax regime:

  • Please note that the tax rates in the New tax regime are the same for all categories of Individuals, i.e. Individuals, Senior citizens, and Super senior citizens. 
  • Individuals with net taxable income less than or equal to Rs 7 lakh will be eligible for tax rebate u/s 87A, i.e. tax liability will be NIL under the new regime.

What is a Surcharge and the Applicable Rates?

In case the income exceeds a certain threshold, the additional taxes are to be paid over and above existing tax rates. This is an additional tax on the High Income Earners.

Surcharge rates are as below:

10% of Income tax if total income > Rs.50 lakh and < Rs.1 crore,

15% of Income tax if total income > Rs.1 crore and < Rs.2 crore,

25% of Income tax if total income > Rs.2 crore and < Rs.5 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 apply to the income from dividends and capital gains taxable under sections 111A (Short Term Capital Gain on Shares)112A (Long Term Capital Gain on Shares), and 115AD (Tax on the income of Foreign Institutional Investors). Therefore, the highest surcharge rate on the tax payable for such incomes 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.

Consequences of Not Filing the Return Within the Due Date for AY 2024-25

With the failure to file the return within the due date for FY 2023-24, the taxpayer must opt for concessional rates in the New Tax regime but will have to forgo certain exemptions and deductions available in the existing old tax regime. 

In total there are 70 deductions & exemptions that are not allowed, out of which the most commonly used are listed below:

Particulars

Old Tax Regime

New Tax regime (until 31st March 2023)

New Tax Regime (From 1st April 2023)

Income level for rebate eligibility

₹ 5 lakhs

₹ 5 lakhs

₹ 7 lakhs

Standard Deduction

₹ 50,000

₹ 50,000

Effective Tax-Free Salary income

₹ 5.5 lakhs

₹ 5 lakhs

₹ 7.5 lakhs

Rebate u/s 87A

12,500

12,500

25,000

HRA Exemption

X

X

Leave Travel Allowance (LTA)

X

X

Other allowances including food allowance of Rs 50/meal subject to 2 meals a day

X

X

Entertainment Allowance Deduction and Professional Tax

X

X

Perquisites for official purposes

Interest on Home Loan u/s 24b on self-occupied or vacant property

X

X

Interest on Home Loan u/s 24b on let-out property

Deduction u/s 80C (EPF|LIC|ELSS|PPF|FD|Children’s tuition fee etc)

X

X

Employee’s (own) contribution to NPS

X

X

Employer’s contribution to NPS

Medical insurance premium – 80D

X

X

Disabled Individual – 80U

X

X

Interest on education loan – 80E

X

X

Interest on Electric vehicle loan – 80EEB

X

X

Donation to Political party/trust etc – 80G

X

X

Savings Bank Interest u/s 80TTA and 80TTB

X

X

Other Chapter VI-A deductions

X

X

All contributions to Agniveer Corpus Fund – 80CCH

Did not exist

Deduction on Family Pension Income

X

Gifts up to Rs 50,000

Exemption on voluntary retirement 10(10C)

Exemption on gratuity u/s 10(10)

Exemption on Leave encashment u/s 10(10AA)

Daily Allowance

Transport Allowance for a specially-abled person

Conveyance Allowance

Comparison of Income Tax Slabs under New Regime before and after Budget

Only the Income tax slabs under the new regimes were revised in the Union Budget 2023.

Slab

New Tax Regime FY 2022-23 (AY 2023-24)

New Tax Regime FY 2023-24 (AY 2024-25)

₹0 - ₹2,50,000

₹2,50,000 - ₹3,00,000

5%

₹3,00,000 - ₹5,00,000

5%

5%

₹5,00,000 - ₹6,00,000

10%

5%

₹6,00,000 - ₹7,50,000

10%

10%

₹7,50,000 - ₹9,00,000

15%

10%

₹9,00,000 - ₹10,00,000

15%

15%

₹10,00,000 - ₹12,00,000

20%

15%

₹12,00,000 - ₹12,50,000

20%

20%

₹12,50,000 - ₹15,00,000

25%

20%

>₹15,00,000

30%

30%

Old Tax regime Vs New Tax regime? Which is better?

The new tax regime can largely benefit middle-class taxpayers who have a taxable income of up to Rs 15 lakh. The old regime is a better option for high-income earners.

The new income tax regime is beneficial for people who make low investments. As the new regime offers six lower-income tax slabs, anyone paying taxes without claiming tax deductions can benefit from paying a lower rate of tax under the new tax regime. For instance, the assessee having total income before deduction up to Rs 12 lakh will have higher tax liability under the old system if they have investments less than Rs. 3,12,500. Therefore, if you invest less in tax-saving schemes, go for the new regime.

That being said, if you already have in place a financial plan for wealth creation by making investments in tax-saving instruments; medical claims and life insurance; making payments of children’s tuition fees; payment of EMIs on education loan; buying a house with a home loan; and so on, the old regime helps you with higher tax deductions and lower tax outgo.

In light of the above and considering the new income tax regime, if taxpayers want to opt for the concessional tax rates, they may evaluate both regimes. Hence, it is advisable to do a comparative evaluation and analysis under both regimes and then choose the most beneficial one, as it may vary from person to person. Read a detailed breakdown on this topic here

When Can I Opt for Old vs New regime?

Nature of Income

Time of Selection of option of old vs new regime

Income from Salary or any other head of income attracting TDS

At the start of the financial year, an employee has the choice to select the tax regime and inform their employer, whereas the default regime shall be new tax regime. It cannot be modified during the year. However, the option can be modified when filing the Income Tax Return.

Income from Business & Profession

In case you have Business or professional income, the choice between tax regimes can only be made once in a lifetime.

Income Tax Rate for Domestic Companies – FY 2023-24

Particulars

Old regime Tax rates

New Regime Tax rates

Company opts for section 115BAB (not covered in sections 115BA and 115BAA) & is registered on or after October 1, 2019, and has commenced manufacturing on or before 31st March 2024 and subject to the conditions specified in the section.

Applicable from AY 2020-21 and onwards.

15%

Company opts for Section 115BAA, wherein the total income of a company has been calculated without claiming specified deductions, incentives, or exemptions and additional depreciation as specified in the section.

Applicable from AY 2020-21 and onwards.

22%

The company opts for section 115BA registered on or after March 1, 2016 and engaged in the manufacture of any article or thing and does not claim the deduction as specified in the section.

Applicable from AY 2017-18 and onwards.

25%

Turnover or gross receipt of the company is less than Rs. 400 crore in the previous year 2020-21

25%

25%

Any other domestic company

30%

30%

*Please refer to the new sections for checking the applicability for the above concessional income tax rates.

NOTE:

  • Additional Health and Education cess at the rate of 4 % will be added to the income tax liability in all cases.
  • Surcharge applicable for companies is as below:
  • 7% of Income tax where total income > Rs 1 crore,
  • 12% of Income tax where total income > Rs.10 crore,
  • 10% of income tax where domestic company opted for section 115BAA and 115BAB.

Income Tax Rate for Partnership Firm or LLP as per Old/New Regime

A partnership firm/ LLP is taxable at 30%.            
NOTE:

  • 12% Surcharge is levied on income is more than Rs 1 crore
  • Health and Education Cess at the rate of 4% will be applicable
  • No concessional rates are introduced for firms LLPs in the next tax regime

Income tax slab rates for FY 2019-20, FY 2020-21, FY 2021-22 and FY 2022-23

Income tax slab for Individual aged below 60 years & HUF

Income Tax Slab

Tax Rates for Individual & HUF Below the Age Of 60 Years & NRIs

Up to ₹2,50,000*

Nil

₹2,50,001 to ₹5,00,000

5%

₹5,00,001 to ₹10,00,000

20%

Above ₹10,00,000

30%

NOTE:

  • Income tax exemption limit is up to Rs 2,50,000 for Individuals, HUF below 60 years aged and NRIs
  • Surcharge and cess will be applicable as discussed above 
  • An additional 4% Health & education cess will be applicable on the tax and surcharge amount

Income tax slab for Individual aged above 60 years to 80 years

Income Tax Slab

Tax Rates for Senior citizens aged above 60 Years & Less than 80 Years

Up to ₹ 3,00,000*

                               No tax

₹3,00,000 - ₹5,00,000

5%

₹5,00,000 - ₹10,00,000

20%

More than ₹10,00,000

30%

NOTE:

  • Income tax exemption limit is up to Rs.3 lakh for senior citizens aged above 60 years but less than 80 years.
  • Surcharge and cess will be applicable as discussed above

Income tax slab for Individual aged more than 80 years

Income Tax Slab

Tax Rates for Super Senior Citizens (Aged 80 Years And Above)

Up to ₹5,00,000*

No tax

₹5,00,000 - ₹10,00,000

20%

More than ₹10,00,000

30%

NOTE:

  • Income tax exemption limit is up to Rs 5 lakh for super senior citizen aged above 80 years.
  • Surcharge and cess will be applicable as discussed above

 

Income Tax Slab FY 2019-20, FY 2020-21, FY 2021-22 and FY 2022-23 for Domestic Companies

Turnover Particulars

Tax Rate

Gross turnover up to 250 Cr. in the previous year

25%

Gross turnover exceeding 250 Cr. in the previous year

30%

NOTE:

  • In addition cess and surcharge are levied as follows: 
    • Cess: 4% of corporate tax
    • Surcharge applicability:
      • Taxable income is more than 1 Crore but less than 10 Crores: 7%
      • Taxable income is more than 10 Crores: 12%

FY 2018-19: Income Tax Slab Rates                                             

Income tax slab for Individual aged below 60 years & HUF

Income Tax Slab

Tax Rates for Individual & HUF Below the Age Of 60 Years

Income up to Rs 2,50,000*

No tax

Income from Rs 2,50,000 – Rs 5,00,000

5%

Income from Rs 5,00,000 – 10,00,000

20%

Income more than Rs 10,00,000

30%

NOTE:

  • An additional 4% Health & education cess will be applicable on the tax amount calculated as above.
  • Surcharge applicability:
    • 10% of income tax, where total income exceeds Rs.50 lakh up to Rs.1 crore.
    • 15% of income tax, where the total income exceeds Rs.1 crore.

Income tax slab for Individuals aged above 60 years to 80 years

Income Tax Slab

Tax Rate for Senior cetizens aged 60 Years But Less than 80 Years

Income up to Rs 3,00,000*

No tax

Income from Rs 3,00,000 - Rs 5,00,000

5%

Income from Rs 5,00,000 - 10,00,000

20%

Income more than Rs 10,00,000

30%

NOTE:

  • An additional 4% Health & education cess will be applicable on the tax amount calculated as above.
  • Surcharge applicability:
    • 10% of income tax, where total income exceeds Rs.50 lakh up to Rs.1 crore.
    • 15% of income tax, where the total income exceeds Rs.1 crore. 

Income tax slab for Individuals aged more than 80 years

Income Tax Slab

Tax Rates for Super Senior Citizens (Aged 80 Years And Above)

Income up to Rs 5,00,000*

No tax

Income from Rs 5,00,000 - Rs 10,00,000

20%

Income more than Rs 10,00,000

30%

NOTE:

  • An additional 4% Health & education cess will be applicable on the tax amount calculated as above.
  • Surcharge applicability:
    • 10% of income tax, where total income exceeds Rs.50 lakh up to Rs.1 crore.
    • 5% of income tax, where the total income exceeds Rs.1 crore

Income Tax Slab for Domestic Companies FY 2018-19

Turnover Particulars

Tax Rate

Gross turnover upto 250 Crore in the previous year

25%

Gross turnover exceeding 250 Crore in the previous year

30%

NOTE:

  • In addition cess and surcharge is levied as follows: 
    • Cess: 4% of corporate tax.
    • Surcharge applicability:
      • Taxable income is more than 1 Crore but less than 10 Crore: 7%
      • Taxable income is more than 10 Crore :12%

FY 2017-18: Income Tax Slab Rates 

Income tax slab for Individual below 60 years & HUF

Income Tax Slab

Tax Rates for Individual & HUF Below the Age Of 60 Years

Income up to Rs 2,50,000*

No tax

Income from Rs 2,50,000 – Rs 5,00,000

5%

Income from Rs 5,00,000 – 10,00,000

20%

Income more than Rs 10,00,000

30%

NOTE:

  • An additional 4% Health & education cess will be applicable on the tax amount calculated as above
  • Surcharge applicability:
    • 10% of income tax, where total income exceeds Rs. 50 lakh up to Rs. 1 crore.
    • 15% of income tax, where the total income exceeds Rs. 1 crore.

Income tax slab for Individual aged above 60 years to 80 years

Income Tax Slab

Tax Rate for Senior citizens aged 60 Years But Less than 80 Years

Income up to Rs 3,00,000*

No tax

Income from Rs 3,00,000 – Rs 5,00,000

5%

Income from Rs 5,00,000 – 10,00,000

20%

Income more than Rs 10,00,000

30%

NOTE:

  • An additional 4% Health & education cess will be applicable on the tax amount calculated as above
  • Surcharge applicability:
    • 10% of income tax, where total income exceeds Rs.50 lakh up to Rs.1 crore
    • 15% of income tax, where the total income exceeds Rs.1 crore.

Income tax slab for Individual aged more than 80 years

Income Tax Slab

Tax Rates for Super Senior Citizens (Aged 80 Years And Above)

Income up to Rs 5,00,000*

No tax

Income from Rs 5,00,000 – 10,00,000

20%

Income more than Rs 10,00,000

30%

NOTE:

  • An additional 4% Health & education cess will be applicable on the tax amount calculated as above
  • Surcharge applicability:
    • 10% of income tax, where total income exceeds Rs.50 lakh up to Rs.1 crore
    • 15% of income tax, where the total income exceeds Rs.1 crore.

Income Tax Slab for Domestic Companies FY 2017-18

Turnover Particulars

Tax Rate

Gross turnover upto 250 Cr. in the previous year

                                             25%

Gross turnover exceeding 250 Cr. in the previous year

                                             30%

NOTE:

  • In addition cess and surcharge is levied as follows: Cess: 4% of corporate tax.
  • Surcharge applicability:
    • Taxable income is more than 1 Crore but less than 10 Crore: 7%
    • Taxable income is more than 10 Crore: 12% 

Related Articles:
1. Old vs New Tax Regime
2. Section 115BAC of Income Tax Act
3. Income Tax Changes From 1 April 2024: New Tax Regime Will Be Default
4. Form 10-IEA Purpose, Applicability, How to Fill & Submit Form
5. Tax free Income in India
6. E-Return Intermediary (ERI) Income Tax
7. Form 61B of Income-tax Act
8. Form 26B of Income-tax Act
9. CRN Number in Income Tax
10. Income Tax Customer Care 

How To Save Tax:
How to Save Tax for Salary Above 7 Lakhs?
How To Save Tax For Salary Above 10 Lakhs?
How to Save Tax for Salary Above 12 Lakhs?
How To Save Tax For Salary Above 15 Lakhs?
How To Save Tax For Salary Above 20 Lakhs?
How To Save Tax For Salary Above 30 Lakhs?
How To Save Tax For Salary Above 50 Lakhs?
How to Save Tax For Salary Above 1 crore?

Frequently Asked Questions

How should I calculate income tax for FY 2023-24?

For FY 2023-2024, taxpayers have the option to select between two tax regimes: the old tax regime or the new one. The income tax should be calculated by using the applicable slab rates.

Can I claim 80C deductions and opt for a new income tax slab regime?

No, the new tax regime does not allow many deductions and exemptions which are otherwise available in the old tax regime. Deductions u/s 80C cannot be claimed if the taxpayer is opting for a New tax regime.

How does the government collect the taxes?

Taxes are collected by the Government through three means: 

  • Voluntary payment by taxpayers through various designated Banks. For example, Advance Tax and Self Assessment Tax payments,
  • Taxes deducted at source [TDS] and 
  • Taxes collected at source [TCS].
Are there separate slab rates for different categories?

Yes, there are separate slab rates under the old tax regimes. However under the new tax regimes, there is no categories as such.

Do I need to file an Income Tax Return (ITR) if my annual income is below ₹3 lakh of the basic exemption limit?

Even if your income is below the exemption limit, you must file your ITR if any of these conditions apply to you.

Is the due date for filing an income tax return the same for all taxpayers?

No, the due date for all the taxpayers is not the same. For individual taxpayers for whom tax audit is not applicable, the due date is 31st July of the assessment year unless extended by the government.

What is the meaning of rebate under section 87A under the IT Act?

Section 87A is a legal provision which allows for tax rebates under the Income Tax Act of 1961. The section, which was inserted through the Finance Act of 2013, provides tax relief for individuals earning below a specified limit. Section 87 A provides that anyone who is residing in India and whose income does not exceed Rs 5,00,000 is eligible to claim a rebate. Thus full income tax rebate is available to individuals with less than Rs 5 Lakh of total taxable income under the old regime, whereas under the new tax regime, the income limit is Rs. 7,00,000. This rebate is applicable only to individuals and not companies, etc and is calculated before adding the health and educational cess of 4 %.

Who decides the IT slab rates, and can they change?

Yes, IT slab rates can be changed by the government. If there are changes in IT slab rates for the financial year, then they are introduced in the Budget and presented in Parliament.

What is the Previous year and Assessment year?

The Income-tax law has two important terms: (i) Previous year and (ii) Assessment year. It is extremely important for determining the taxpayer's income and tax payable amount.        
(i) Previous year: The previous year is the year in which the income is earned which typically starts on 1st April and ends on 31st March. Whereas, the year immediately following the previous year (1st April to 31st March) is known as ‘Assessment Year’.           
For example, the current previous year is from 1st April 2023 to 31st March 2024, i.e. FY 2023-24. The corresponding assessment year is 1st April 2024 to 31st March 2025, i.e. AY 2024-25.

How to file an income tax return online?

To submit your income tax return online, log on to either the income tax e-filing portal or you can also e-file through Cleartax. For e-filing through the income tax portal, log in to www.incometax.gov.in. You can also download the offline JSON utility and file the ITR. Remember to verify the return within 30 days of filing the ITR. ITR filing is incomplete without verification, failure to verify the return will be deemed that you have not filed the return at all.        
Please click here to read the step-by-step guide on how to e-file ITR on the income tax e-filing portal.

How much income is tax free in India?

Income tax law has prescribed a basic exemption limit for individuals up to which the taxpayers are not required to pay taxes. Such a limit is different for different categories of taxpayers under old tax regime. Individual below 60 years of age are not required to pay tax upto the income limit of Rs 2.5 Lakh. Individuals above 60 years but less than 80 years of age are not required to pay tax upto Rs 3 lakh of income. Individuals above 80 years are not required to pay tax upto Rs 5 lakh of income. The basic exemption limit for all the individuals under the new tax regime is Rs 3 lakh, irrespective of age.

How to calculate surcharge on income tax?

The surcharge is a tax on tax. Hence surcharge is calculated on the tax payable and not on the income earned. For example, if you have an income of Rs 1000 with 30% tax of Rs. 300, if the income is subject to surcharge then 10% surcharge would be levied on tax of Rs. 300 i.e. Rs 30. Surcharge is levied at different rates i.e 

  • 10% is levied is total income is > 50 lakh, 
  • 15% is levied if total income is more than 1 crore, 
  • 25% of income if total income is > 2 crores.
How to calculate the age of a senior citizen for income tax?

Individual above the age of 60 years is regarded as a senior citizen whereas an individual above 80 years is regarded as a super senior citizen for the purpose of income tax. Senior citizens and super senior citizens have been provided higher tax exemption limits and specific benefits by the income tax law in order to provide some relief.

How to pay income tax online?

The income tax payment facility has been migrated from OLTAS to the 'e-Pay Tax' facility of the e-filing portal. You can refer to this step-by-step guide for making your tax payments.

Will my income be taxed if I am an agriculturist?

Any income which is generated from agriculture or its allied activities will not be taxed. However, it will be considered for determining the tax rate while calculating tax on any non-agricultural income that you may have.

If my income is 5 lakh, how much tax do I have to pay?

No tax is payable since tax rebate is available upto Rs. 5 lakh under old regime and Rs. 7lakh under new regime.

If my income is 7 lakh, how much tax do I have to pay?

No tax is payable under the new tax regime up to Rs. 7 lakh. 

If my income is 10 lakh, how much tax do I have to pay?

New Regime: 62,400

Old Regime: 1,17,000

If my income is 15 lakh, how much tax do I have to pay?

New Regime: 1,56,000

Old Regime: 2,73,000

If my income is 20 lakh, how much tax do I have to pay?

New Regime: 3,12,000

Old Regime: 4,29,000

These taxes have been calculated based on the assumption that they are Net Taxable Income after deducting all deductions. However, you may add your exact income details on this simplified income tax calculator to find out the exact tax payable. If you are calculating for FY 2023-24, make sure to select the correct financial year.

Do I have to mandatorily opt for a New tax regime while filing returns for AY 2024-25?

Taxpayers have the freedom to select the tax regimes, if one needs to opt for the old regime and claim deductions, exemptions, and losses must file their income tax returns by opting out of the new regime.

For employees, the choice needs to be made at the beginning of the year and can be modified at the time of ITR filing. However, if you are engaged in business or profession, the option to switch to the Old Tax regime is available only once in your lifetime. We recommend that you carefully evaluate your tax outgo under both regimes and then select the one which is most beneficial to you.

What is e-verification of Income tax returns? How to do it?

The income tax return needs to be verified post submission. It is applicable for all types of return original, belated, revised or updated return. It is mandatory to do verify the return within 30 days from the date of filing. Failure to verify the return will be deemed that you have not filed the return at all. One can do the verification either by physically by appending the signature on the ITR acknowledgement form (ITR V) manually and sending it to CPC, Bengaluru by courier or post OR electronically via Aadhaar OTP or EVC (electronic verification code) or Digital signature during or after the submission of Income tax return.

Is standard deduction applicable in the new tax regime?

Yes, the standard deduction is allowed under the new tax regime for FY 2023-24. However, it was not allowed as a deduction for FY 2022-23. 

What deductions are allowed in the new tax regime?

One can claim a few selective deductions under the new tax regime for FY 2023-24, such as a standard deduction of Rs.50,000, interest on Home Loan u/s 24b on let-out property, employer’s contribution to NPS u/s 80CCD, Contributions to Agniveer Corpus Fund u/s 80CCH, Deduction on Family Pension Income (lower of 1/3rd of actual pension or 15,000).

Is HRA exemption available in new tax regime?

No, HRA exemption u/s10(13A) is not allowed in new tax regime. Along with that most claimed exemptions are also NOT allowed such as Leave Travel Allowance (LTA), Exemption on voluntary retirement 10(10C), Exemption on gratuity u/s 10(10), Exemption on Leave encashment u/s 10(10AA), Daily Allowance, Transport Allowance for a specially-abled person, Conveyance Allowance etc,

How to choose the tax regimes while filing?

There are differential process to opt in for tax regimes between FY 2022-23 and FY 2023-24.

For 2022-23 - default regime is old tax regime

If the total income does not include profit and gains from business & profession and new tax regime needs to be opted, then one must file Form 10IE (online form from Income Tax portal) before the submission of income tax return by clicking Yes for “Do you opt for sec 115BAC(1)?”, else one must file income tax return only without the requirement to file Form 10IE. In both the scenarios return must be submitted within the due date.

For 2023-24 - default regime is new tax regime

If the total income does not include profit and gains from business & profession and new old regime needs to be opted, then one must file Form 10IEA (online form from Income Tax portal) before the submission of income tax return by clicking Yes for “Do you opt out from sec 115BAC(1A)?”, else one must file income tax return only without the requirement to file Form 10IEA. In both the scenarios return must be submitted within the due date.

Which form has to be filed for opting the old tax regime?

Form 10-IEA must be filed before the due date for opting to pay taxes under the old tax regime.

What happens if an individual doesn’t submit the Form 10-IEA timely?

If an individual forgets to complete the submission of Form 10-IEA before or during the filing of the ITR, they will be unable to choose the old tax regime. The delayed submission of the form of failure to submit means that the income tax department will compute tax as per the new tax regime.

About the Author

Multitasking between pouring myself coffees and poring over the ever-changing tax laws. Here, I've authored 100+ blogs on income tax and simplified complex income tax topics like the intimidating crypto tax rules, old vs new tax regime debate, changes in debt funds taxation, budget analysis and more. Some combinations I like- tax and content, finance & startups, technology & psychology, fitness & neuroscience. Read more

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The article explains the income tax slabs under old and new tax regimes in India, detailing exemptions, rebates, surcharges, and filing procedures. It compares tax rates for different age groups and income brackets, also providing examples and insights on when to opt for old versus new regimes. The importance of filing within the due date, implications of not filing on time, and a comprehensive breakdown of exemption details are also discussed.

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