Income Tax Slab Rates FY 2023-24 & 2024-25

Income Tax SlabIncome Tax Slab Rates FY 2023-24 & 2024-25: All tax slabs for below 60 years, between 60-80 years, and more than 80 years is provided below.

In India, the government taxes people’s income based on how much they earn. This system is called a “slab system.”

It means that different tax rates are applied to different income ranges. As someone’s income increases, they have to pay a higher tax rate. This approach aims to make the tax system fair and progressive.

The income tax slabs, which define the income ranges and corresponding tax rates, are updated regularly, usually during the annual budget announcement. The slab rates can differ for various groups of taxpayers, such as individuals, senior citizens, and others.

Now, let’s explore the income tax slab rates that will be applicable for the financial year 2023-24 (assessment year 2024-25).

Income Tax slabs

About Income Tax Slab Rates

The Finance Act 2023 has made changes to Section 115BAC, which will come into effect from the Assessment Year 2024-25.

The new tax regime will become the default tax regime for individuals, Hindu Undivided Families (HUFs), Association of Persons (AOPs) (excluding co-operative societies), Body of Individuals (BOIs), and Artificial Juridical Persons.

However, eligible taxpayers will have the option to opt-out of the new tax regime and choose to be taxed under the old tax regime.

The old tax regime refers to the system of income tax calculation and tax slabs that existed before the introduction of the new tax regime. In the old tax regime, taxpayers can claim various tax deductions and exemptions.

For non-business cases, taxpayers can exercise the option to choose the tax regime every year directly in the Income Tax Return (ITR) to be filed on or before the due date specified under Section 139(1).

In case of eligible taxpayers having income from business and profession and wanting to opt-out of the new tax regime, they would need to furnish

Form-10-IEA on or before the due date under Section 139(1) for filing the return of income. Additionally, for withdrawing the option to opt-out of the old tax regime, taxpayers would also need to furnish Form No.10-IEA.

However, for eligible taxpayers having income from business and profession, the option to switch to the old tax regime and withdraw the option in any subsequent Assessment Year is available only once in their lifetime.

Related Articles:

Income Tax Rate Slab: Below 60 Years of Age

Tax rates for Individual (resident or non-resident) less than 60 years of age anytime during the previous year are as under:

New Tax Regime u/s 115BAC
Income Tax Slab Income Tax Rate
Up to ₹ 3,00,000 Nil
₹ 3,00,001 – ₹ 6,00,000 5% above ₹ 3,00,000
₹ 6,00,001 – ₹ 9,00,000 ₹ 15,000 + 10% above ₹ 6,00,000
₹ 9,00,001 – ₹ 12,00,000 ₹ 45,000 + 15% above ₹ 9,00,000
₹ 12,00,001 – ₹ 15,00,000 ₹ 90,000 + 20% above ₹ 12,00,000
Above ₹ 15,00,000 ₹ 1,50,000 + 30% above ₹ 15,00,000

Income Tax Rate Slab: Between 60 Years to 80 Years

Tax rates for Individual (resident or non-resident), 60 years or more but less than 80 years of age anytime during the previous year are as under:

New Tax Regime u/s 115BAC
Income Tax Slab Income Tax Rate
Up to ₹
3,00,000
Nil
₹ 3,00,001 – ₹
6,00,000
5% above ₹ 3,00,000
₹ 6,00,001 – ₹
9,00,000
₹ 15,000 + 10% above ₹
6,00,000
₹ 9,00,001 – ₹
12,00,000
₹ 45,000 + 15% above ₹
9,00,000
₹ 12,00,001 – ₹
15,00,000
₹ 90,000 + 20% above ₹
12,00,000
Above ₹ 15,00,000 ₹ 1,50,000 + 30% above ₹
15,00,000

Income Tax Rate Slab: More Than 80 Years of Age

Tax rates for Individuals (resident or non-resident) 80 years of age or more anytime during the previous year are as under:

New Tax Regime u/s 115BAC
Income Tax Slab Income Tax Rate
Up to ₹ 3,00,000 Nil
₹ 3,00,001 – ₹
6,00,000
5% above ₹ 3,00,000
₹ 6,00,001 – ₹
9,00,000₹
₹ 15,000 + 10% above ₹
6,00,000
₹ 9,00,001 – ₹
12,00,000
₹ 45,000 + 15% above ₹
9,00,000
₹ 12,00,001 – ₹
15,00,000
₹ 90,000 + 20% above ₹
12,00,000
Above ₹ 15,00,000 ₹ 1,50,000 + 30% above ₹
15,00,000

Income Tax Slab for domestic companies

Particulars

Old regime Tax rates

New Regime Tax rates

Company opts for section 115BAB (not covered in sections 115BA and 115BAA) & is registered on or after October 1, 2019, and has commenced manufacturing on or before 31st March 2024 and subject to the conditions specified in the section.

Applicable from AY 2020-21 and onwards.

15%

Company opts for Section 115BAA, wherein the total income of a company has been calculated without claiming specified deductions, incentives, or exemptions and additional depreciation as specified in the section.

Applicable from AY 2020-21 and onwards.

22%

The company opts for section 115BA registered on or after March 1, 2016 and engaged in the manufacture of any article or thing and does not claim the deduction as specified in the section.

Applicable from AY 2017-18 and onwards.

25%

Turnover or gross receipt of the company is less than Rs. 400 crore in the previous year 2020-21

25%

25%

Any other domestic company

30%

30%

Note:

  • An Additional Health and Education cess at the rate of 4% will be added to the income tax liability in all cases.
  • Surcharge applicable for companies is as follows:
    • 7% of Income tax where total income exceeds Rs 1 crore.
    • 12% of Income tax where total income exceeds Rs 10 crore.
    • 10% of Income tax where a domestic company has opted for section 115BAA or 115BAB.

Rates of Surcharge Under the Two Tax Regimes

The rates of Surcharge under the two tax regimes are as under:

   Total Income Old Tax Regime New Tax Regime
Rate of Surcharge Applicable
Up to Rs. 50 Lakh Nil Nil
Above Rs. 50 Lakh and up to Rs. 1 Crore 10% 10%
Above Rs. 1 Crore and up to Rs. 2 Crore 15% 15%
Above Rs. 2 Crore and up to Rs. 5 Crore 25% 25%
Above Rs. 5 Crore 37% 25%

Note: The enhanced surcharge of 25% & 37%, as the case may be, is not levied, from income chargeable to tax under sections 111A, 112, 112A and Dividend Income.

Hence, the maximum rate of surcharge on tax payable on such incomes shall be 15%, except when the income is taxable under section 115A, 115AB, 115AC, 115ACA and 115E.

Rebate u/s 87A

Resident Individuals are also eligible for a Rebate of up to 100% of income tax subject to a maximum limit depending on tax regimes as under:

Total Income Old Tax Regime New Tax Regime
Rebate under Section 87A Applicable
Up to Rs. 5 Lakh

Tax rebate up to Rs.12,500 is applicable for resident individuals  if the total income does not exceed Rs 5,00,000 (not applicable for NRIs

Tax rebate up to Rs.25,000 is applicable for resident individuals  if the total income does not exceed Rs 7,00,000 (not applicable for NRIs

From 5 Lakhs to 7 Lakhs NIL

The rate of Health & Education cess remains same in both the regimes.

How to Calculate Income Tax?

Samantha has a total taxable income of Rs 8,00,000. This income has been calculated by including income from all sources, such as salary, rental income, and interest income.

Deductions under section 80 have also been reduced. Samantha wants to know her tax dues as per the old regime for FY 2023-24 (AY 2024-2025).

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 2023-24 (AY 2024-25)

Rs 75,400

Note:

Please note that Rohit is an individual taxpayer assessee having an income tax exemption of Rs 2,50,000. For other taxpayer assessees, i.e. senior citizens and super senior citizens, the Income-tax limit for availing the exemption would be Rs 3,00,000 & Rs 5,00,000, respectively.

Individuals with net taxable income less than or equal to Rs 5 lakh will be eligible for tax rebate u/s 87A under the old tax regime, i.e. tax liability will be NIL.

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