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The income tax slab is different and is set according to the old and new regime. Under the old tax regime, the taxable income slabs are categorised as:
- Indian residents aged < 60 years + All the non-residents
- 60 to 80 years: Resident Senior citizens
- More than 80 years: Resident Super senior citizens
Let's first understand what Income Tax Slab refers to and what are the components you should know about.
What is the Income Tax Slab?
India follows a progressive system of income tax . In India, the term " income tax slab " refers to the categorisation of income levels at which different rates of income tax are applied to individuals based on their age and income brackets. These slabs are used to determine the amount of income tax payable by taxpayers for a given financial year.These slabs are progressive, meaning as the income increases, the applicable tax rate also increases. For senior citizens (aged 60 to 80 years) and super senior citizens (above 80 years), there are slightly different slabs with higher thresholds for lower tax rates.The income tax slabs are set by the Government of India through the annual Union Budget and are subject to periodic revisions based on economic conditions and fiscal policies. It's important for taxpayers to be aware of these slabs to calculate their income tax liability correctly and comply with the tax laws.Let's look at the taxable income slabs under the old and new tax regimes.
Tax Slabs 2024 FY- Old Tax Regime Slabs:
Income tax slabs for fy 2023 24 /AY 2024-25: Old tax regime slabs
| Income Tax Slabs 2024-25 | Individuals (Age< 60 years) | Resident Senior Citizens (>60 but <80 years) | Resident Super Senior Citizens (80 years and above) |
| Up to ₹ 2,50,000 | Nil | Nil | Nil |
| ₹ 2, 50, 001 to ₹ 3, 00, 000 | 5% | Nil | Nil |
| ₹ 3, 00, 001 to ₹ 5, 00, 000 | 5% | 5% | Nil |
| ₹ 5,00,001 to ₹ 10, 00, 000 | 20% | 20% | 20% |
| Above ₹ 10,00,000 | 30% | 30% | 30% |
Tax Slabs 2024 FY - New Tax Regime Slabs:
| Tax Slabs 2024 - | Income Tax Rates |
| Up to ₹ 3,00,000 | Nil |
| ₹ 3, 00, 001 to ₹ 6, 00, 000 | 5% (Tax rebate u/s 87A) |
| ₹ 6, 00, 001 to ₹ 9, 00, 000 | 10% (Tax rebate u/s 87A up to ₹ 7 lakh) |
| ₹ 9,00,001 to ₹ 12, 00, 000 | 15% |
| ₹ 12,00,001 to ₹ 1500, 000 | 20% |
| Above ₹ 15,00,000 | 30% |
Note:
- up to ₹2,50,000 for Individuals, HUF below 60 years aged and NRIs.
- up to ₹3,00,000 for senior citizens aged above 60 years but less than 80 years.
- up to ₹5,00,000 for super senior citizens aged above 80 years.
- Surcharge and cess will be applicable over and above the tax rates.
- The exemption limit for new tax regime slabs are:
The new tax regime rebate is up ₹25,000 and is applicable only if the total income exceeds ₹7,00,000. Note: The rebate under Section 87A of the Income Tax Act provides relief to individual taxpayers whose total income does not exceed ₹5,00,000. It allows for a reduction in income tax liability by the lower of ₹12,500 or the amount of tax payable.As per the latest Finance Act, 2023, few changes have been made. The rebate in the new regime has been changed to ₹7,00,000. In the new regime, the rebate is determined by the lesser of the income tax payable or ₹25,000. Also Read: Business Income Tax - How Income Tax Is Calculated on Business Income?
Current Tax Slabs 2024 - Surcharge Rate for FY 2023-24 (AY 2024-25)
In India, a surcharge is an additional tax levied on the income tax payable by individuals, Hindu Undivided Familie s (HUFs), companies, and other entities based on their income levels. The surcharge rates can vary depending on the total income earned during the financial year.Here are the surcharge rates applicable for individuals for different income levels:
| Income range | Surcharge rate (New Regime) | Surcharge rate (Old Regime) |
| Up to Rs 50 lakh | Nil | Nil |
| More than Rs 50 lakh but up to Rs 1 crore | 10% | 10% |
| More than Rs 1 crore but up to Rs 2 crore | 15% | 15% |
| More than Rs 2 crore but up to Rs 5 crore | 25% | |
| More than Rs 2 crore | 25% | |
| More than Rs 5 crore | 37% |
Exceptions for Surcharge Applicability
The surcharge rates of 25% and 37% are different and would not be applicable under these sections-
- Section 111A (Short Term Capital Gains on Shares
- Section 112A (Long Term Capital Gain on shares) &
- Section 115AD [tax on income of FIIs (Foreign Institutional Investors]
Also Read: Understanding the Basics of Income Tax Rebate: A Guide for Taxpayers
Different Kinds of Taxable Income in India
In India, taxable income includes various categories that are subject to income tax under the Income Tax Act, 1961. Here are the different kinds of taxable income commonly recognized:
- Gifts received from any TV show or programme
- Interests from securities, bonds, and debentures
- Dividends income
- Gambling, horse races and lotteries- profits
- Gifts from friends and families
- Pension received after pensioner's death
- Rental income from non-residential properties
- Salary Income
- Income from Business or Profession
- Income from House property
- Income from Capital Gains
- Income from other sources :
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FAQS - FREQUENTLY ASKED QUESTIONS
How do I calculate income tax for income tax brackets 2023-24 ?
For FY 2023-24, the individual must choose between the two tax regimes: the income tax slabs old regime & new tax regime tax slabs. The income tax would be calculated based on the applicable income tax slab rates.
Can income tax slabs be different for different states in India ?
No, income tax slabs are uniform across all states and union territories in India. The rates are centrally determined by the Union Government.
How are income tax slabs determined in India ?
Income tax slabs are determined based on the income levels and the principle of progressive taxation, where higher incomes are taxed at higher rates.
Where can I find the latest tax slabs for FY 2023-24 ?
The latest income tax slabs for FY 2023-24 can be found on the official website of the Income Tax Department of India or through announcements made during the Union Budget.
Is there any rebate available under the income tax slabs for FY 2023-24?
Yes, there is a rebate under Section 87A available for individuals with income up to ₹5,00,000, which is ₹12,500 or the amount of tax payable, whichever is lower.
How does the government process the taxes?
Taxes are collected by the Government of India under three ways:
• Voluntary payment by taxpayers
• Tax deducted at source (TDS)
• Tax collected at source (TCS)
What are the penalties for non-compliance with income tax regulations in India ?
Non-compliance with income tax regulations, such as late filing of returns, non-payment of taxes due, or incorrect information provided, may attract penalties and interest charges. These penalties vary based on the nature and severity of the default. For example, if you file your ITR late, the charges would be 5% of of the tax due and also puts an interest of 1% per month.
What is TDS (Tax Deducted at Source) under the income tax system ?
TDS is a mechanism under which a specified percentage of tax is deducted by the payer (employer, bank, etc.) at the time of making certain payments such as salary, interest, rent, etc., and deposited with the government on behalf of the payee.
What is the difference between deductions under Section 80C, 80D, and exemptions under Section 10 of the Income Tax Act? ?
Deductions under sections like 80C, 80D, etc., allow taxpayers to reduce their taxable income before calculating tax liability. Exemptions under Section 10 exclude certain incomes or allow certain incomes to be taxed at lower rates or not taxed at all.
What is rebate in taxable income slabs?
The rebate under section 87A of the Income Tax Act provides relief to individual taxpayers whose total income is below a specified limit. For the financial year 2023-24, this rebate is applicable if the total income does not exceed ₹5,00,000. The rebate amount is the lower of ₹12,500 or the total income tax payable.
The information contained herein is generic in nature and is meant for educational purposes only. Nothing here is to be construed as an investment or financial or taxation advice nor to be considered as an invitation or solicitation or advertisement for any financial product. Readers are advised to exercise discretion and should seek independent professional advice prior to making any investment decision in relation to any financial product. Aditya Birla Capital Group is not liable for any decision arising out of the use of this information.
