Legal Action for Not Returning Money – File a Complaint
Before legal recourse, attempt to negotiate a repayment plan with the debtor directly. Open communication can often lead to a mutually agreeable solution.
Income Tax Slab FY 2023-24 and AY 2024-25 (Old and New Regime)
Nithya Ramani Iyer
19 July 2024
6,175 7 minutes read
Every year, the finance minister announces income tax slab in India. These slab rates differ for different types of taxpayers. Click here to know ITR Slab Rates in India.
30th Jan 2023 – Income Tax Slab in India are announced by the finance minister every year. Currently, there are two different Income Tax regimes. Under the new regime, tax benefits cannot be availed. Under the old regime, taxpayers can avail of tax benefits. This year, finance minister Nirmala Sitharaman announced the Union Budget for 2022 on 1 February 2022. In the latest budget, no changes have been proposed for the existing income tax slab and rate.
What Is an ITR Slab?
The income Tax Slab refers to the bracketed system for calculating tax owed by individuals. The amount owed is determined by the individual’s income, with those earning more paying a higher amount. The slab system was established to promote fairness in the tax system and is subject to change during budget announcements.
Discover the ease of income tax return filing with Vakilsearch. Our tailored solutions ensure seamless ITR submissions for maximum benefits.
Income Tax Slabs Remain Unchanged
In the Union Budget 2022, no alteration was made to the ITR slabs for individuals by Finance Minister Nirmala Sitharaman. However, senior citizens aged 75 and above were given an exemption from filing income tax if their sole source of income was a pension.
Calculating taxes has never been easier. Try our calculate income tax online tool today. Our salary income tax calculator is here to help you.
New Income Tax Slab for FY 2022 – 2023 (AY 2023 – 2024)
Given below are the various tables for the Revised Income Tax Slabs and rates for the FY 2022 – 2023 and AY 2023 – 2024:
Income Tax Slab
Tax Rate
Up to ₹2.5 lakh
Nil
Above ₹2.50 – ₹5 lakh
5% of the total income that is more than ₹2.5 lakh
Above ₹5 lakh – ₹7.50 lakh
10% of the total income that is more than ₹5 lakh + ₹12,500
Above ₹7.50 lakh – ₹10 lakh
15% of the total income that is more than ₹7.5 lakh + ₹37,500
Above ₹10 lakh – ₹12.50 lakh
20% of the total income that is more than ₹10 lakh + ₹75,000
Above ₹12.50 – ₹15 lakh
25% of the total income that is more than ₹12.5 lakh + ₹1,25,000
Above ₹15 lakh
30% of the total income that is more than ₹15 lakh + ₹1,87,500
Note: New income tax rates are optional
New Regime Income Tax Slab Rates for Individual
Total Income (Gross)
₹12 Lakh
Deductions (80C, 80CCD)
–
HRA
–
Travel and Medical Allowance
–
Income that is Taxable
₹12 lakh
Up to ₹2.5 lakh
–
Above ₹2.50 – ₹5 lakh
₹12,500
Above ₹5 lakh – ₹7.50 lakh
₹25,000
Above ₹7.50 – ₹10 lakh
₹37,500
Above ₹10 lakh – ₹12.50 lakh
₹40,000
Total Tax that must be Paid
₹1,15,000
Things You Must Keep In Mind Before Opting for New Tax Slab
Consider these points before choosing the new Income tax slab:
If you are an individual or part of a Hindu Undivided Family (HUF) without any business income, the option can be made before the start of each financial year.
Once you choose the new Income Tax Slab regime, you cannot change it for that financial year. However, if you withdraw your option for the new regime and switch back to the old one, you may opt for the new regime again later in the same financial year.
Income Tax Slabs & Rates as Per Old Regime FY 2022 – 2023
Given below are the three tables for the alternative ITR Slabs:
Income Tax Slab for Individuals Who Are Below 60 Years
ITR Slabs
Tax Rate
Up to ₹2.5 lakh
Nil
Above ₹2.50 lakh – ₹5.00 lakh
5% of the total income that is more than ₹2.5 lakh + 4% cess
Above ₹5 lakh – ₹10 lakh
20% of the total income that is more than ₹5 lakh + ₹12,500 + 4% cess
Above ₹10 lakh
30% of the total income that is more than ₹10 lakh + ₹1,12,500 + 4% cess
Individuals who have an income of less than ₹5 lakh are eligible for tax deductions under Section 87A
Example of How Income Tax is Calculated under the Old Regime for 3 Individuals (A, B, and C)
Components
A
B
C
Annual Salary (₹)
5,00,000
10,00,000
15,00,000
Standard Deduction (₹)
50,000
50,000
50,000
Tax deductions under Section 80C of the Income Tax Act (₹)
70,000
1,50,000
1,50,000
House Rent Allowance deductions
82,000
90,000
1,40,000
Gross total income after deductions (₹)
2,88,000
7,00,000
11,50,000
Computation of Tax on the Gross Total Income
Up to ₹2.5 lakh (₹)
Nil
Nil
Nil
From ₹2,50,001 to ₹5 lakh (₹)
1,900
12,500
12,500
From Rs,5,00,001 to ₹10 lakh (₹)
40,000
1,00,000
Above ₹10 lakh (₹)
45,000
Total Tax (₹)
1,900
52,500
1,57,500
Deductions under Section 87A (₹)
1,900
Nil
Nil
Additions of cess (₹)
Nil
2,100
6,300
Total tax that is payable (₹) (Total Tax + cess – Deductions under Section 87A)
Nil
54,600
1,63,800
Income Tax Slab Between 60-80 Years (Senior Citizen)
Income Tax Slabs
Tax Rate
Up to ₹3 lakh
Nil
Above ₹3.00 lakh – ₹5.00 lakh
5% of the total income that is more than ₹3 lakh + 4% cess
Above ₹5.00 lakh – ₹10 lakh
20% of the total income that is more than ₹5 lakh + ₹10,500 + 4% cess
Above ₹10 lakh
30% of the total income that is more than ₹10 lakh + ₹1,10,000 + 4% cess
Given below is an Example of How Income Tax is Calculated for 3 Individuals (A, B, C)
Components
A
B
C
Annual Salary (₹)
5,00,000
10,00,000
15,00,000
Standard deduction (₹)
50,000
50,000
50,000
Tax deductions under Section 80C of the Income Tax Act (₹)
70,000
1,50,000
1,50,000
House Rent Allowance deductions
82,000
90,000
1,40,000
Gross total income after deductions (₹)
2,88,000
7,00,000
11,50,000
Computation of Tax on the Gross Total Income
Up to ₹3 lakh (₹)
Nil
Nil
Nil
From ₹3,00,001 to ₹5 lakh (₹)
Nil
10,500
10,500
From Rs,5,00,001 to ₹10 lakh (₹)
40,000
99,500
Above ₹10 lakh (₹)
45,000
Total Tax (₹)
Nil
50,500
1,55,000
Deductions under Section 87A (₹)
Nil
Nil
Nil
Additions of cess (₹)
Nil
2,020
6,200
Total tax that is payable (₹)
Nil
52,520
1,61,200
Income Tax Slabs for Individuals Above 80 Years (Super Senior Citizen)
Income Tax Slabs
Tax Rate
Up to ₹5 lakh
Nil
Above ₹5 lakh – ₹10 lakh
20% of the total income that is more than ₹5 lakh + 4% cess
Above ₹10 lakh
30% of the total income that is more than ₹10 lakh + ₹1,00,000 + 4% cess
Given Below Is an Example of How Income Tax Is Calculated for 3 Individuals (A, B, C)
Components
A
B
C
Annual Salary (₹)
5,00,000
10,00,000
15,00,000
Standard deduction (₹)
50,000
50,000
50,000
Tax deductions under Section 80C of the Income Tax Act (₹)
70,000
1,50,000
1,50,000
House Rent Allowance deductions
82,000
90,000
1,40,000
Gross total income after deductions (₹)
2,88,000
7,00,000
11,50,000
Computation of Tax on the Gross Total Income
Up to ₹5 lakh (₹)
Nil
Nil
Nil
From Rs,5,00,001 to ₹10 lakh (₹)
40,000
1,00,000
Above ₹10 lakh (₹)
45,000
Total Tax (₹)
Nil
40,000
1,45,000
Deductions under Section 87A (₹)
Nil
Nil
Nil
Additions of cess (₹)
Nil
1,600
5,800
Total tax that is payable (₹)
Nil
41,600
1,50,800
For Domestic Companies, The Tax-Slabs Depend on Turnover as Mentioned Below
Turnover
Tax Rate
Gross turnover can be a maximum of ₹250 crores for the previous year
25%
Gross turnover is more than ₹250 for the previous year
30%
Apart from the above-mentioned tax rate, an additional surcharge and cess are levied. Given below are the details of the surcharge and the cess that will be levied:
Cess: 4% of corporate tax
Surcharge: In case the taxable income is more than ₹1 crore but less than ₹10 crore, the surcharge that will be levied is 7%. In case the taxable income is more than ₹10 crores, the surcharge that will be levied is 12%.
Non-resident Indians: For non-resident Indians, irrespective of their age, the exemption limit is up to ₹2.5 lakh.
Important Points
In case your net income is more than ₹50 lakh but less than ₹1 crore, apart from a 4% cess, a 10% surcharge is also levied. If the net is above ₹1 crore, a 15% surcharge is levied.
Compared to last year’s budget, the cess has increased from 3% to 4%.
Surcharge Rates Applicable to Income Tax
When an assessee’s income exceeds the limits specified by the Income Tax Department, a surcharge is levied on the amount of the income tax. The rates for a surcharge are listed below:
Income Tax Slab Rate For Assessment Year 2022-23
Range of Income
Applicable Rate of Surcharge
₹50 lakhs to ₹1 crore
10%
₹1 crore to ₹2 crore
15%
₹2 crore to ₹5 crore
25%
₹5 crore to ₹10 crore
37%
More than ₹10 crore
37%
ITR Slab Rate For Assessment Year 2023-24
Range of Income
Applicable Rate of Surcharge
₹50 lakhs to ₹1 crore
10%
₹1 crore to ₹2 crore
15%
₹2 crore to ₹5 crore
25%
₹5 crore to ₹10 crore
37%
More than ₹10 crore
37%
Time to Choose Between the New and Old Tax Regime Slabs
Type of Income
When choosing between the Old and New Regimes
Salary income or any other type of income that triggers TDS
An employee can opt for the new tax regime slab at the beginning of the financial year. However, once chosen they cannot revert to the old regime and can only change the option of selecting the tax regime at the beginning of the new financial year
Income from Profession and Business
In case of income from profession and business, the option to choose between the tax regimes is available only once.
New Income Tax Slab Rates for Domestic Companies
Type
Old regime Tax rates
New Regime Tax rates
Company chooses section 115 BAB and is registered on or after 1 October 2019 and has commenced manufacturing on or before 31 March 2023.
–
15%
Company chooses Section 115 BAA, wherein the total income of a company has been calculated where specified deductions, incentives, exemptions and additional depreciation have not been claimed
–
22%
Company chooses section 115BA registered on or after 1 March 2016 and are engaged in manufacture of any item and no deduction claim as specified in the section clause has been made.
–
25%
If a company’s turnover is less than ₹ 400 crore in the previous year 2018-19
25%
25%
Any other domestic company
30%
30%
Income Tax Slab FAQs
Is ITR mandatory if income is less than 5 lakhs?
No, Income up to 5 lakh is not tax-free. Individuals earning up to 2.5 lakh are exempt from paying tax.
How is the Income Tax Slab calculated?
The calculation of income tax slab is based on the taxable income of an individual or entity. The taxable income is calculated by subtracting exemptions, deductions, and rebates from the total income. The resulting amount is then compared to the applicable tax slab rates, which vary based on the individual's residential status and the financial year, to determine the tax owed. The tax slab rates can range from 0% to 30% for individuals and entities, with higher slab rates for those earning higher taxable incomes.
How much Income is Taxable?
The amount of income that is taxable depends on several factors, including the individual's residential status and the exemptions, deductions, and rebates available under tax laws. In general, all sources of income, including salary, business and professional income, capital gains, and rental income, are considered taxable. However, certain types of income may be exempt from tax or eligible for deductions, reducing the amount of taxable income. The exact amount of taxable income will depend on an individual's specific financial situation and is calculated by subtracting the applicable exemptions, deductions, and rebates from the total income.
How can I reduce my Taxable Income?
You can reduce your taxable income by taking advantage of exemptions, deductions, and rebates available under tax laws. Some common ways to reduce taxable income include: Investing in tax-saving instruments such as Public Provident Fund (PPF), Equity-Linked Saving Scheme (ELSS), National Pension Scheme (NPS), etc. Claiming standard deductions and exemptions, such as house rent allowance (HRA), medical expenses, and children's education expenses. Incurring expenses that are eligible for tax deductions, such as tuition fees, home loan interest, insurance premium, etc. Making donations to eligible charitable organizations, which can also result in tax deductions. Opting for the new Income Tax Slab regime, which may result in lower tax liability.
Nithya Ramani Iyer is an experienced content and communications leader at Zolvit (formerly Vakilsearch), specializing in legal drafting, fundraising, and content marketing. With a strong academic foundation, including a BSc in Visual Communication, BA in Criminology, and MSc in Criminology and Forensics, she blends creativity with analytical precision. Over the past nine years, Nithya has driven business growth by creating and executing strategic content initiatives that resonate with target audiences. She excels in simplifying complex concepts into clear, engaging content while developing high-impact marketing strategies. Nithya's unique expertise in legal content and marketing makes her a key asset to the Zolvit team, enhancing brand visibility and fostering meaningful audience engagement.
