The Income Tax Slab for the Financial Year 2023-24 (FY 2023-24) and Assessment Year 2024-25 (AY 2024-25) have been announced by the Government of India. It applies to all taxpayers across India and is applicable from April 1, 2023, to March 31, 2024.
It is important to note that the income tax slab 2023-24 and AY 2024-25 are the same. The tax slab for FY 2023-24 and AY 2024-25 applies to all individuals and Hindu Undivided Families (HUF).
Income Tax Slab 2023-24 and AY 2024-25 is divided into three slabs. The first slab is for income up to ₹2.5 lakhs, which is exempt from tax. The next slab is for income between ₹2.5 lakhs to ₹5 lakhs, which is taxed at 5%. The last slab is for income over ₹5 lakhs, which is taxed at 20%. In addition to the tax slabs, there are cess and surcharge applicable on the income.
The Income tax slab 2023-24 and AY 2024-25 has been revised from the previous year. The tax exemption limit has been increased from ₹2.5 lakhs to ₹5 lakhs. This will benefit taxpayers who have an income of up to ₹5 lakhs. The higher tax slab of 20% has also been revised to apply to income over ₹10 lakhs. This will reduce the burden on taxpayers with higher incomes.
Budget on Income Tax Slab 2023-24
| Income range | Income tax rate |
| Up to ₹ 3,00,000 | Nil |
| ₹ 300,000 to ₹ 6,00,000 | 5% on income which exceeds ₹3,00,000 |
| ₹ 6,00,000 to ₹ 900,000 | ₹15,000 + 10% on income more than ₹6,00,000 |
| ₹ 9,00,000 to ₹ 12,00,000 | ₹45,000 + 15% on income more than ₹9,00,000 |
| ₹ 12,00,000 to ₹ 1500,000 | ₹90,000 + 20% on income more than ₹12,00,000 |
| Above ₹ 15,00,000 | ₹150,000 + 30% on income more than ₹15,00,000 |
In India, income tax is imposed on the income earned by individuals, Hindu Undivided Families (HUFs), partnership firms, Limited Liability Partnerships (LLPs), and corporations, as per the Income Tax Act. For individuals, if their income exceeds the basic exemption limit, tax is calculated using the slab system.
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Understanding the Changes to the Income Tax Slab for AY 2023-24
The income tax slab 2023-24 and AY 2024-25 has undergone some significant changes from the previous year. The changes have been made to provide relief to taxpayers with low income. The most notable change is the increase in the tax exemption limit from ₹2.5 lakhs to ₹5 lakhs. This will benefit taxpayers who have an income of up to ₹5 lakhs.
The higher tax slab of 20% has also been revised to apply to income over ₹10 lakhs. This will reduce the burden on taxpayers with higher incomes. In addition, the surcharge applicable on income above ₹1 crore has also been reduced from 15% to 12%. The cess applicable on income tax has also been increased from 4% to 5%.
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Comparing the Income Tax Slab 2023-24 & AY 2024-25 to Previous Years
The income tax slab for FY 2023-24 and AY 2024-25 has undergone some significant changes from the previous year. The tax exemption limit has been increased from ₹2.5 lakhs to ₹5 lakhs. This will benefit taxpayers who have an income of up to ₹5 lakhs. The higher tax slab of 20% has also been revised to apply to income over ₹10 lakhs. This will reduce the burden on taxpayers with higher incomes.
In addition, the surcharge applicable on income above ₹1 crore has also been reduced from 15% to 12%. The cess applicable on income tax has also been increased from 4% to 5%. Also, the standard deduction has been increased from ₹40,000 to ₹50,000. These changes have been made to provide relief to taxpayers and simplify the taxation system.
Income Tax Slab Rates AY 2023-24 for Individuals Below 60 Years, NRIs and HUFs
Let’s examine the income tax brackets for the income tax slab 2023-24 (Assessment Year 2024-25) for resident individuals below 60 years, Hindu Undivided Family (HUF), and Non-Resident Indians (NRIs) with earnings in India:
| Net Taxable Income | New Tax Regime Income Tax Slab Rates FY 2023-24 | Old Tax Regime Income Tax Slab Rates FY 2023-24 |
| Up to ₹ 2.5 lakh | Exempt | Exempt |
| ₹ 2,50,001 to ₹ 5 lakh | 5% | 5% |
| ₹ 5,00,001 to ₹ 7.5 lakh | 10% | 20% |
| ₹ 7,50,001 to ₹ 10 lakh | 15% | 20% |
| ₹ 10,00,001 to ₹ 12.5 lakh | 20% | 30% |
| ₹ 12,50,001 to ₹ 15 lakh | 25% | |
| Over ₹ 15 lakh | 30% |
Income Tax Slab 2023-24 (AY 2024-25) for Senior Citizen Taxpayers
In India, individuals aged above 60 but below 80 are categorised as senior citizen taxpayers. They receive a more favourable basic exemption limit of ₹ 3 lakh, higher than that for individuals below 60 in the old tax regime. However, this advantage of increased exemption is not applicable if senior citizen taxpayers choose the new tax regime. The table below outlines the Income Tax slab rates for senior citizens in India for AY 2023-24 (FY 2023-24):
| Net Taxable Income | Income Tax Slab Rates FY 2023-24 (Old Tax Regime) | Income Tax Slab Rates FY 2023-24 (New Tax Regime) |
| Up to ₹ 2.5 lakh | Nil | Nil |
| ₹ 2,50,001 to ₹ 3 lakh | 5% | |
| ₹ 3,00,001 to ₹ 5 lakh | 5% | |
| ₹ 5,00,001 to ₹ 7.5 lakh | 20% | 10% |
| ₹ 7,50,001 to ₹ 10 lakh | 15% | |
| ₹ 10,00,001 to ₹ 12.5 lakh | 30% | 20% |
| ₹ 12,50,001 to ₹ 15 lakh | 25% | |
| Over ₹ 15 lakh | 30% |
Income Tax Slabs 2023-24 for Super Senior Citizens
As per existing tax regulations, super senior citizen taxpayers are individuals aged 80 years or older. In the old tax regime for the income tax slab 2023-24, super senior citizens enjoy a higher basic exemption limit of ₹ 5 lakh as per the income tax slab rates. However, this advantage is not applicable under the new tax regime, despite the lower slab rates for AY 2024-25 compared to the old tax regime. The table below provides a summary of the income tax slab and rates applicable to super senior citizens in income tax slab 2023-24:
| Net Taxable Income | Old Tax Regime Income Tax Slab 2023-24 | New Tax Regime Income Tax Slab Rates (FY 2023-24) |
| Up to ₹ 2.5 lakh | Nil | Nil |
| ₹ 2,50,001 to ₹ 5 lakh | 5% | |
| ₹ 5,00,001 to ₹ 7.5 lakh | 20% | 10% |
| ₹ 7,50,001 to ₹ 10 lakh | 15% | |
| ₹ 10,00,001 to ₹ 12.5 lakh | 30% | 20% |
| ₹ 12,50,001 to ₹ 15 lakh | 25% | |
| Over ₹ 15 lakh | 30% |
Revised Income Tax Slab Rate FY 2023-24 (AY 2024-25) – For New Regime
| Income Slabs | Income Tax Rates FY 2023-24 (AY 2024-25) |
| Up to ₹ 3,00,000 | Nil |
| ₹ 3,00,000 to ₹ 6,00,000 | 5% on income which exceeds ₹ 3,00,000 |
| ₹ 6,00,000 to ₹ 9,00,000 | ₹ 15,000 + 10% on income more than ₹ 6,00,000 |
| ₹ 9,00,000 to ₹ 12,00,000 | ₹ 45,000 + 15% on income more than ₹ 9,00,000 |
| ₹ 12,00,000 to ₹ 15,00,000 | ₹ 90,000 + 20% on income more than ₹ 12,00,000 |
| Above ₹ 15,00,000 | ₹ 150,000 + 30% on income more than ₹ 15,00,000 |
Comparison of Income Tax Slabs Under New Regime Before and After budget
| Slab | New Tax Regime FY 2023-24 (AY 2024-25) | 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% |
Calculating Your Income Tax Liability for FY 2023-24 & AY 2024-25
Calculating your income tax liability for FY 2023-24 and AY 2024-25 is a straightforward process. The first step is to calculate your total taxable income. This includes all your income from salary, income from house property, income from other sources and capital gains. Once your total taxable income is calculated, you can use the tax slab to calculate your tax liability.
If your total taxable income is up to ₹5 lakhs, then you are eligible for the tax exemption limit of ₹5 lakhs. If your total taxable income is over ₹5 lakhs, then you will be taxed at the applicable rate. You will also be required to pay the cess and surcharge applicable to your income. Once your tax liability is calculated, you can deduct any applicable tax deductions or tax credits.
Maximising Your Tax Savings under Income Tax Slab 2023-24 & AY 2024-25
Maximising your tax savings for FY 2023-24 and AY 2024-25 is an important part of financial planning. Tax-saving investments such as Public Provident Fund (PPF), National Pension System (NPS), Equity Linked Savings Scheme (ELSS) and life insurance policies are some of the best options for saving tax. These investments also provide long-term capital appreciation and regular income.
You can also avail of tax deductions for certain expenses such as medical insurance premiums, tuition fees, home loan interest payments and donations. You can also avail of tax credits for investments in specific government schemes such as Sukanya Samriddhi Yojana and Pradhan Mantri Vaya Vandana Yojana. These investments can help you reduce your overall tax liability.
Penalties for Late Filing of Income Tax Slab 2023-24 & AY 2024-25
Filing your income tax return on time is very important. If you fail to file your income tax return before the due date, then you may be liable to pay the penalty. The penalty is calculated as a percentage of the tax due and is applicable for each month of delay in filing the return.
The penalty for late filing of the income tax slab 2023-24 and AY 2024-25 is as follows: up to ₹5,000 for a delay of up to 1 month; up to ₹10,000 for a delay up to 3 months; up to ₹10,000 for delay up to 6 months; and up to ₹1,000 per day for delay beyond 6 months. In addition, you may also be liable to pay interest on the tax due.
It is, therefore, important to file your income tax return on time to avoid any penalties. If you are unable to file your income tax return on time, then you should contact your Chartered Accountant or filing service provider to get help in filing your return.
Conclusions
In conclusion, the income tax slab 2023-24 and AY 2024-25 has undergone some significant changes from the previous year. The tax exemption limit has been increased from ₹2.5 lakhs to ₹5 lakhs, and the higher tax slab of 20% has been revised to apply to income over ₹10 lakhs. In addition, the surcharge applicable on income above ₹1 crore has been reduced from 15% to 12%, and the cess applicable on income tax has been increased from 4% to 5%. It is important to file your income tax return on time to avoid any penalties and to maximise your tax savings, tax saving investments like PPF and ELSS should be considered.
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FAQs on Income Tax Slab 2023-24
What is the income tax slab 2023-24?
The income tax slab 2023-24 varies based on income levels, starting from 5% for income up to 2.5 lakhs and going up to 30% for income exceeding 10 lakhs.
Is the new tax slab applicable for 2023-24?
Yes, the new tax slab is applicable for the financial year 2023-24.
What is the new tax slab for FY 2024?
The new tax slab for FY 2024 starts at 5% for income up to 2.5 lakhs and reaches 30% for income exceeding 10 lakhs.
What is the tax exemption limit?
The tax exemption limit is up to 2.5 lakhs, allowing individuals to earn this amount without incurring any income tax liability.
Which tax slab is better?
The choice of tax slab depends on individual circumstances. The new regime might be better for those looking for reduced tax rates, while the old regime might offer more exemptions and deductions.
What is the difference between the old and new tax regime 2023?
The new tax regime for 2023 generally has lower tax rates but fewer deductions compared to the old regime, aiming for simplicity and reduced paperwork.
Is the tax slab 2023 same as the old regime?
No, the tax slab for 2023 in the new regime is different from the old regime, with revised tax rates and changes in available exemptions and deductions.
What are the tax changes for 2023 old tax regime?
The tax changes for the 2023 old tax regime primarily pertain to the continuation of existing tax rates, exemptions, and deductions, providing a familiar framework for taxpayers.
