Income Tax Slab Rates 2024

Income Tax Slab Rates - Overview

Individual taxpayers are expected to pay income tax in accordance with the allotted tax slab. As per their income, a person may fall into a different tax slab. Therefore, those with higher incomes will be required to pay more tax. To protect the nation's tax policy properly, the slab system was enforced. Every time a budget announcement is made, the slabs are altered effectively.

The current system restricts the usage of tax advantages. Tax incentives were available to taxpayers under the previous system. On 1 February 2022, this year's union budget was proclaimed by finance minister Nirmala Sitharaman. The current income tax rates and slabs have not been changed in the most recent budget.

Tax Slabs for AY 2022–23

As per the Section 115 BAC of the Income Tax Act, Individual Indian citizens, and HUFs may choose between the current tax regime and the new tax regime with a lower rate of taxation. However, the taxpayer choosing concessional rates under the new tax regime will not benefit from certain exemptions and deductions (such as 80C, 80D, 80TTB, and HRA) available under the present tax regime. The tax regimes are provided as per the age slabs below. Please have a look.

For Individual (resident or non-resident) less than 60 years of age anytime during the previous year:

For Individual (resident or non-resident), 60 years or more but less than 80 years of age anytime during the previous year:

For Individual (resident or non-resident) 80 years of age or more anytime during the previous year:

Process for Filing ITR

• Step 1: Visit the official website of the Income Tax Department
• Step 2: Create an account using PAN, your user ID. Users who have enrolled can press 'Login Here'. Find e-file and assign 'Income Tax Return'
• Step 3: Choose the ITR form type and AY from the drop-down menu. The filing type and submission mode you must choose are 'Original/Revised Return' and 'Prepare and Submit Online', respectively
• Step 4: Select 'Continue' and complete the ITR form's mandatory fields
• Step 5: Determine the percentage of tax due. Make your selection from the 'Taxes Paid and Verification' tab.
• Step 6: Next, click 'Preview and Submit'. Finish the verification process by providing an Aadhaar OTP, an Electronic Verification Code (EVC) obtained from a bank account or bank ATM, information about a depository account, or a completed ITR-5 (via fast post or regular mail) to the IT Department
• Step 7: Enter the OTP or EVC that was published to your enrolled cellphone number during its legal period and then attend the on-screen instructions to fulfil.

Forms for Filing ITR

The income tax department offers seven different types of forms for the people to file taxes and they are

Form ITR-1 SAHAJ

For those who are residents, have total annual incomes up to ₹50 lakh, and receive income from salaries, one home, other sources (such as interest), and up to ₹5,000 from agriculture

Form ITR-2

For people and HUFs who don't make money through their businesses' or professions' profits and gains.

Form ITR-3

For individuals and HUFs making money from their businesses' or professions' revenues and gains.

Form ITR-4 Sugam

For individuals, firms (other than LLP) and HUF who are Indian citizens and have income through their businesses and employment having total earnings of up to ₹50 lakh, as defined by Sections 44AD, 44ADA, or 44AE.

Form ITR-5

For those who are not an individual, a HUF, a firm, or a person filing individually Type ITR-7

Form ITR-6

For Businesses other than those claiming Exemption under Section 11

Form ITR-7

Individuals who are required to pay under Sections 139(4A), 139(4B), 139(4C), or 139(4D) should use this form

Documents For Filing ITR

• Aadhaar Card
• PAN Card
• Form 16
• Bank account details
• Form 26AS
• Details of home loan statement
• Tax saving schemes
• Capital gain details
• Rental Income
• Foreign income tax
• Dividend income

Advantages of Filing ITR

High Life Insurance Cover

You will be able to get sizable life insurance coverage with the help of your ITR. Insurance companies might opt not to offer you this advantage if they think you are a tax cheat.

Fast Loan Processing

If you're applying for a loan, the last three years' worth of ITR filing documentation should be needed. This would make it easier for the bank to examine your financial situation and capacity to pay back the loan. By providing these papers, the loan's processing time may be shortened. The processing of credit cards is the same.

Third-Party Accidental Claims

For instance, in case of an accident, you wish to submit an insurance claim. Insurance companies typically want your ITR documentation before taking legal action. If you omit the ITR details, your request share may be reduced. Your statement can be opposed, as per the crisis.

Quicker VISA Approval

For VISA approval you should provide ITR evidence. This is to guarantee that your financial condition is stable. If you intend to go internationally, you must apply for a visa and provide copies of your most recent tax returns.

New Income Tax Slab for FY 2023-24 (AY 2024-25)

The following tables show the Revised Income Tax Slabs and not the old tax regime. The table for the new tax regime slabs-