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

Income Tax Slab A.Y.2023-24 (F.Y.2022-23 – From 01-04-2022 to 31-03-2023): This income tax slab will be applicable for the assessment year 2023-24 for the income period from 01-04-2022 to 31-03-2023. The last date to file income tax return for a.y. 2023-24 is 31st July 2023. The income tax slab rates are here available for both tax regimes i.e. old tax regime and new tax regime.

For the assessment year 2023-24, we have provided both income tax slabs under the old tax regime and the new tax regime. Some taxpayers are confused about which tax regime applies to their income. One thing we want to clarify here is that you can choose between the old tax regime and the new tax regime where you will get a bigger tax benefit.

Income Tax Slab A.Y. 2023-24 Old Tax Regime 

Income Tax Slab A.Y. 2023-24 Old Tax Regime: The following table shows the income tax slabs for the assessment year 2023-24 under the old tax regime. For the financial year 2022-23, these income tax rates will apply to income earned from 1 April 2022 to 31 March 2023. You can also check your income tax slab for 2023-24 under the new tax regime. The taxpayer has the option of paying taxes under the old tax regime or the new tax regime for the year 2023-24. You can choose where you will be paying less taxes in order to save money.

Income RangeTax Rate
Less than 60 Years of Age
Up to Rs. 2.5 LakhNil
Rs. 2 Lakh to 5 Lakh5% of (total income minus Rs. 2 Lakh)
Rs. 5 Lakh to 10 LakhRs. 12500 + 20% (Total Income Minus Rs. 5 Lakh)
Above 10 LakhRs. 1,12,500 + 30% of (total income minus Rs. 10 Lakh)
Resident Senior Citizen (60 Years or More in Previous Year)
Up to Rs. 3 LakhNil
Rs. 3 Lakh to 5 Lakh5% of (total income minus Rs. 3 Lakh)
Rs. 5 Lakh to 10 LakhRs. 10,000 + 20% of (total income minus Rs. 5 Lakh)
Above 10 LakhRs. 1,10,000 30% of (total income minus Rs. 10 Lakh)
Resident Super Senior Citizen (80 Years or More in Previous Year)
Up to Rs. 5 LakhNil
Rs. 5 Lakh to Rs. 10 Lakh20% of (total income minus Rs. 5 Lakh)
Above Rs. 10 LakhRs. 1,00,000 + 30% of (total income minus Rs. 10 Lakh)
Rebate u/s 87A - Resident Individuals with net incomes up to Rs. 5,00,000 may be eligible for a rebate under section 87A. The rebate is deductible from income tax before computing health and education cess and is equal to 100% of income tax or Rs. 12,500.
Health and Education Cess (HEC): 4% of Income-Tax
In case of Sr Citizen or Super Senior Citizen: Any resident individual whose 60th/80th birthday falls on 1st April 2023 shall be treated as having completed the age of 60/80 years as on 31st March 2023 i.e. previous year 2022-23 (A.Y. 2023-24) and hence would be eligible for the higher basic exemption limit of Rs. 3 lakh and 5 lakh.
Surcharge
Total Income up to 50 LakhNil
Above Rs. 50 Lakh to 1 Crore10%
From 1 Crore to 2 Crore15%
From 2 Crore to 5 Crore25%
Above 5 Crore37%
In any case surcharge on Dividend and Capital Gains u/s 111A, 112A, & 112 shall not exceed 15%.

Income Tax Slab A.Y. 2023-24 New Tax Regime 

Income Tax Slab A.Y. 2023-24 New Tax Regime: The following table shows the income tax slabs under the new tax regime for the assessment year 2023-24. Tax rates will be applicable to income earned between 01-04-2022 and 31-03-2023, i.e. during the financial year 2022-23. On the basis of your benefits, you can choose between the old and new tax regime.

Income Tax Slab AY 2023-24 (New Tax Regime) Section 115BAC
Applicable to all age group
upto Rs. 2,50,000Nil
Rs.2,50,001 to Rs.5,00,0005%
Rs.5,00,001 to Rs.7,50,00010%
Rs.7,50,001 to Rs.10,00,00015%
Rs.10,00,001 to 12,50,00020%
Rs.12,50,001 to 15,00,00025%
Above 15,00,00030%
Health and Education Cess (HEC): 4% of Income-Tax
Surcharge
Total Income up to 50 LakhNil
Above Rs. 50 Lakh to 1 Crore10%
From 1 Crore to 2 Crore15%
From 2 Crore to 5 Crore25%
Above 5 Crore37%

Deductions Allowed or Not Allowed (Old Tax Regime Vs New Tax Regime)

There are certain deductions that are not permitted under the new tax regime, as well as some exemptions. The deductions listed here are those which are allowed under the old tax regime and not allowed under the new tax regime. The taxpayer should carefully assess their own individual circumstances before choosing the most beneficial tax regime.

Deductions Old Tax Regime (A.Y.2023-24) New Tax Regime (A.Y. 2023-24) 
Rebate u/s 87A 12500 (Income up to 5 Lakh) 12500 (Income up to 5 Lakh)
Standard Deduction 50000
Leave Travel Allowance (LTA) Yes No
House Rent Allowance HRA Exemption Yes No
Food Allowance of Rs. 50/meal with two meals a day plus other allowances Yes No
Perquisites for official purposes Yes Yes
Entertainment Allowance Yes No
Professional Tax Yes No
Self-occupied or vacant property Home Loan Interest under section 24b Yes No
Interest on Home Loan for Let-Out Property Yes Yes
Deduction 80C (LIC/EPF/ELSS/PPF/FD/Children’s Tuition Fee etc) Yes No
NPS Employee’s Own Contribution Yes No
NPS Employer’s Contribution Yes Yes
80D Medical Insurance Yes No
80U Disabled Individual Yes No
80E Interest on Education Loan Yes No
80EEB Interest on Electric Vehicle Loan Yes No
80G Donation to Political Party/Trust Yes No
80TTA and 80TTB Saving Bank Interest Yes No
Other Deduction under Chapter VI-A Yes No
Conveyance Allowance Yes Yes
Transport Allowance for a Specially abled person Yes Yes
Daily Allowance Yes Yes
Exemption on Leave Encashment u/s 10 (10AA) Yes Yes
Exemption on Gratuity u/s 10(10) Yes Yes
Exemption on Voluntary Retirement 10 (10C) Yes Yes
Deduction on Family Pension Income Yes Yes
80CCH – Contribution to Agniveer Corpus Fund Yes Did not exist

According to the above table, some deductions are not allowed under the new tax system for 2023-2024. Therefore, the taxpayer should determine how much tax they would pay under both regimes before making a choice.

Q. Which Income tax slab is applicable to me for A.Y.2023-24? 

In A.Y.2023-24, you will be taxed under either the old or the new regime, depending on the tax regime you choose. The first step is to calculate income tax under the old tax regime and then under the new tax regime. Select the tax regime that provides you with the most tax benefits.

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