ITR Filing Last Date FY 2023-24 (AY 2024-25)
March 2, 2024
Income Tax for NRI
March 2, 2024
Income Tax Slabs for Financial Year 2023-24 & Assessment Year 2024-25
The income tax slabs vary between the traditional and modern tax systems. Additionally, the traditional tax system categorizes its slabs into three distinct categories.
- Individuals below 60 years of age who are Indian residents, along with all non-residents, fall into this category.
- Those aged between 60 and 80 years are classified as resident senior citizens.
- Individuals over the age of 80 are categorized as resident super senior citizens.
Interim Budget 2024-2025 Updates:
There were no adjustments to direct taxes in the Interim Budget for the year 2024-2025.
What Is Income Tax Slab?
In India, individuals are subject to the Income Tax according to a slab system, wherein distinct tax rates correspond to various income ranges. As individuals earn higher incomes, they face higher tax rates, facilitating a fair and progressive tax framework within the country. These income tax slabs undergo periodic revisions, usually during each budget cycle, and differ based on taxpayer categories.
Let’s explore the applicable slab rates for the Financial Year 2022-23 (Assessment Year 2023-24) and the Financial Year 2023-24 (Assessment Year 2024-25).
| Old Regime | |||
| Slabs | Individuals
(Age < 60 years) |
Resident Senior Citizens
(> 60 but < 80 years) |
Resident Super Senior Citizens
(80 years and above) |
| Up to Rs 2,50,000 | Nil | Nil | Nil |
| Rs 2,50,001 to Rs 3,00,000 | 5% | Nil | Nil |
| Rs 3,00,001 to Rs 5,00,000 | 5% | 5% | Nil |
| Rs 5,00,001 to Rs 10,00,000 | 20% | 20% | 20% |
| Above Rs 10,00,000 | 30% | 30% | 30% |
| New Regime | |||
| Slabs | Income Tax Rates | ||
| Up to Rs 3,00,000 | Nil | ||
| Rs 3,00,001 to Rs 6,00,000 | 5% (Tax rebate u/s 87A) | ||
| Rs 6,00,001 to Rs 9,00,000 | 10% (Tax rebate u/s 87A up to Rs 7 lakh) | ||
| Rs 9,00,001 to Rs 12,00,000 | 15% | ||
| Rs 12,00,001 to Rs 15,00,000 | 20% | ||
| Above Rs 10,00,000 | 30% | ||
Income Tax Slab Rates For FY 2022-23 (AY 2023-24)
a. New Tax regime
| Income Slabs | Income Tax Rates |
| ₹0 – ₹2,50,000 | – |
| ₹2,50,000 – ₹5,00,000 | 5%
(tax rebate u/s 87A is available) |
| ₹5,00,000 – ₹7,50,000 | 10% |
| ₹7,50,000 – ₹10,00,000 | 15% |
| ₹10,00,000 – ₹12,50,000 | 20% |
| ₹12,50,000 – ₹15,00,000 | 25% |
| >₹15,00,000 | 30% |
Please refer to the image above to find the rates applicable for the Financial Year 2023-24 (Assessment Year 2024-25) for the forthcoming tax filing season.
b. Old Tax regime
Income Tax slabs for individuals under the age of 60 and Hindu Undivided Families (HUF).
| Income Slabs | Individuals Below The Age of 60 Years & NRSs |
| Up to 2.5 lakh | Nil |
| Rs 2.5 lakh – Rs 5 lakh | 5% |
| Rs 5 lakh – Rs 10 lakh | 20% |
| > Rs 10 lakh | 30% |
Note:
- The income tax exemption limit extends to Rs 2,50,000 for individuals, Hindu Undivided Families (HUF) below the age of 60, and Non-Resident Indians (NRIs).
- The surcharge and cess will be applicable as previously mentioned.
Income tax slab for individual aged above 60 years to 80 years
| Income Slabs | Income Tax Slabs for Senior Citizens (Aged 60 years but less than 80 years) |
| Rs 0 – Rs 3 lakh | Nil |
| Rs 3 lakh – Rs 5 lakh | 5% |
| Rs 5 lakh – Rs 10 lakh | 20% |
| > Rs 10 lakh | 30% |
Note:
- The income tax exemption limit for senior citizens aged above 60 years but less than 80 years extends up to Rs. 300,000.
- The surcharge and cess mentioned earlier will be applicable accordingly.
The applicability of Section 194Q provisions of the Income Tax Act
| Income Slabs | Income Tax Slabs for Super Senior Citizens (Aged 80 years and Above) |
| Rs 0 – Rs 5 lakh* | Nil |
| Rs 5 lakh – Rs 10 lakh | 20% |
| > Rs 10 lakh | 30% |
Note:
- The income tax exemption limit for super senior citizens aged above 80 years is set at Rs 500,000.
- The surcharge and cess will be applicable as previously discussed
How to Calculate Income Tax from Income Tax Slabs?
For example,
Shivam’s total taxable income amounts to Rs 8 lakh, comprising earnings from various avenues like salary, rental income, and interest income. Additionally, deductions under section 80 have been accounted for. Shivam seeks to determine his tax liabilities for the Financial Year 2022-23 (Assessment Year 2023-2024).
| Income Tax Slabs | Tax Rate | Tax Amount |
| *Income up to Rs 2,50,000 | No tax | – |
| Income from Rs 2,50,000 – Rs 5,00,000 | 5% (Rs 5,00,000 – Rs 2,50,000) | Rs 12,500 |
| Income from Rs 5,00,000 – 10,00,000 | 20% (Rs 8,00,000 – Rs 5,00,000) | Rs 60,000 |
| Income more than Rs 10,00,000 | 30% | – |
| Tax | Rs 72,500 | |
| Cess | 4% of Rs 72,500 | Rs 2,900 |
| Total tax in FY 2022-23 (AY 2023-24) | Rs 75,400 | |
Please note that Shivam is an individual taxpayer assesses with an income tax exemption limit of Rs 2,50,000. For other taxpayer assesses, namely senior citizens and super senior citizens, the income tax exemption limit for availing the exemption is Rs 3 lakh and Rs lakh respectively.
FAQ’s
- Is it possible for me to avail of 80C deductions while choosing the new income tax slab regime?
Unfortunately, under the new tax regime, numerous deductions and exemptions available in the old tax regime are not permitted. Specifically, deductions under section 80C cannot be claimed if the taxpayer opts for the new tax regime.
- How does the government collect the taxes?
The government collects taxes through three primary methods:
- Voluntary payments made by taxpayers through designated banks, such as Advance Tax and Self Assessment Tax payments.
- Taxes deducted at the source [TDS].
- Taxes collected at the source [TCS].
- What is Previous year and Assessment year?
The Income-tax law encompasses two significant terms: (i) Previous year and (ii) Assessment year. These terms play a crucial role in determining the taxpayer’s income and the amount of tax payable.
(i) Previous year: The previous year is the year in which the income is earned, typically starting from April 1st to March 31st. Conversely, the year immediately succeeding the previous year (April 1st to March 31st) is termed the ‘Assessment Year’.
For instance, the current previous year runs from April 1st, 2022, to March 31st, 2023, denoted as FY 2022-23. Correspondingly, the assessment year is from April 1st, 2023, to March 31st, 2024, designated as AY 2024-25.
- Is the due date for filing an income tax return same for all taxpayers?
No, the due date for taxpayers varies. For individual taxpayers, the due date is typically 31st July of the assessment year unless extended by the government.
- Who decides the IT slab rates and can they change?
Indeed, the government has the authority to modify income tax slab rates. If alterations to the income tax slab rates are proposed for the financial year, they are typically introduced in the Budget and presented in Parliament.
- How much income is tax free in India?
The income tax law has established a basic exemption limit for individuals, up to which taxpayers are not required* to pay taxes. This limit varies for different categories of taxpayers. Individuals below the age of 60 are not required to pay tax on income up to Rs 2.5 lakh. Individuals aged 60 to less than 80 years are not liable to pay tax on income up to Rs 3 lakh. Individuals aged 80 and above are not required to pay tax on income up to Rs 5 lakh. Under the new tax regime, the basic exemption limit for all individuals is Rs 2.5 lakh, regardless of age.
- If my income is 5 lakh, how much tax do I have to pay?
No tax payment is necessary as a tax rebate is available.
- If my income is 7 lakh, how much tax do I have to pay?
New Regime: 33,800
Old Regime: 54,600
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