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 Range | Tax Rate |
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Less than 60 Years of Age | |
Up to Rs. 2.5 Lakh | Nil |
Rs. 2 Lakh to 5 Lakh | 5% of (total income minus Rs. 2 Lakh) |
Rs. 5 Lakh to 10 Lakh | Rs. 12500 + 20% (Total Income Minus Rs. 5 Lakh) |
Above 10 Lakh | Rs. 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 Lakh | Nil |
Rs. 3 Lakh to 5 Lakh | 5% of (total income minus Rs. 3 Lakh) |
Rs. 5 Lakh to 10 Lakh | Rs. 10,000 + 20% of (total income minus Rs. 5 Lakh) |
Above 10 Lakh | Rs. 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 Lakh | Nil |
Rs. 5 Lakh to Rs. 10 Lakh | 20% of (total income minus Rs. 5 Lakh) |
Above Rs. 10 Lakh | Rs. 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 |
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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 Lakh | Nil |
Above Rs. 50 Lakh to 1 Crore | 10% |
From 1 Crore to 2 Crore | 15% |
From 2 Crore to 5 Crore | 25% |
Above 5 Crore | 37% |
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 |
|
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upto Rs. 2,50,000 | Nil |
Rs.2,50,001 to Rs.5,00,000 | 5% |
Rs.5,00,001 to Rs.7,50,000 | 10% |
Rs.7,50,001 to Rs.10,00,000 | 15% |
Rs.10,00,001 to 12,50,000 | 20% |
Rs.12,50,001 to 15,00,000 | 25% |
Above 15,00,000 | 30% |
Health and Education Cess (HEC): 4% of Income-Tax | |
Surcharge | |
Total Income up to 50 Lakh | Nil |
Above Rs. 50 Lakh to 1 Crore | 10% |
From 1 Crore to 2 Crore | 15% |
From 2 Crore to 5 Crore | 25% |
Above 5 Crore | 37% |
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.