Income tax slab for ay 2024-25

O n February 1, 2023, Nirmala Sitharaman, India's Finance Minister, announced the Union Budget 2023 , which included new income tax slabs and rates under the new tax regime. The new tax structure was implemented in Budget 2020 with six slabs, which have since been reduced to five for normal persons, elderly citizens, and HUFs (Hindu Undivided Families). Furthermore, in the case of the new tax system for FY 2023-24, the basic exemption level was raised to Rs. 3 lakh from Rs. 2.5 lakh previously. However, no modifications were made to the former tax regime's tax slabs and rates for AY 2024-25, which would stay the same as the income tax slab FY 2022-23 (AY 2023-24). Let's look at the revised income tax slabs for FY 23-2024 for both the new and old tax regimes. Income Tax Slabs for HUFs and Individuals in FY 2023-24 (AY 2023-24): According to the Budget 2023 release, the new income tax slab rates for each individual for FY 23-2024 are as follows: Annual Taxable Income New Tax Regime Old Tax Regime Up to Rs.2.5 lakh Exempt Exempt Over Rs.2.5 lakh to Rs.3 lakh Exempt 5% Over Rs.3 lakh to Rs. 5 lakh 5% 5% Over Rs.5 lakh to Rs.6 lakh 5% 20% Over Rs.6 lakh to Rs. 9 lakh 10% 20% Over Rs.9 lakh to Rs.10 lakh 15% 20% Over Rs.10 lakh to Rs.12 lakh 15% 30% Over Rs.12 lakh to Rs.15 lakh 20% 30% Above Rs.15 lakh 30% 30% The majority of tax-saving investments, such as life insurance tax advantages, however, cannot be obtained if one chooses the new tax system. Income Tax Slab for Super Se...

In a country as economically and financially diverse as India, taxing every individual at the same rate would be unfair. This is why India follows a progressive tax system. This means that individuals who have higher incomes are taxed more than those who have lower incomes. This is possible by grouping individuals according to income tax slabs for the purpose of taxation. 1. What Are Income Tax Slabs? Indian taxpayers are bracketed into different income categories for easier and fairer taxation. For instance, an individual making ₹5,00,000 per annum should not have to pay the same tax as someone making ₹50,00,000 per annum. The tax slab system classifies people based on their income and taxes people progressively on the higher income that they make. At present, India has two different income tax regimes for tax slabs. The old tax regime categorized taxpayers into three different categories with taxes ranging from 5% to 30%. In the Union Budget of 2020, the Finance Minister introduced new tax slabs as an alternative. Further, budget 2023 proposed some changes to the new income tax regime, and now there are six different tax slabs for taxpayers. 2. Income Tax Slabs as Per the New and Old Tax Regime As already outlined, the new tax regime has six different income tax slabs as compared to three under the old tax regime. The income tax new tax regime has done away with most deductions and exemptions that could be claimed under the old tax regime. Apart from knowing the differen...

Income Tax Rates for FY 2023-24 (AY 2024-25) proposed in Budget 2023 Introduction This article summarizes Income Tax Rates, Surcharge, Health & Education Cess, Special rates, and rebate/relief applicable to various categories of Persons viz. Individuals (Resident & Non Resident), HUF, Firms/LLP, Companies, Co-operative Society, Local Authority, AOP, BOI, artificial juridical persons for income liable to tax in the Financial Year 2023-24 (Assessment Year 2024-25) as proposed in Finance Bill, 2023 vide Budget announced on 01.02.2023. The following amendments related to tax rates/computation have been introduction in Budget 2023:- a) Change in tax slab of ‘New Tax Regime’ b) Increase in the rebate limit to Rs.7 lakh in the ‘New Tax Regime’ c)Extend the benefit of standard deduction to the ‘New Tax Regime’ d) Reduce the Highest surcharge rate from 37% to 25% in ‘New Tax Regime’ e) Making ‘New Tax Regime’ as default tax regime option f) Extending applicability of ‘New Tax Regime’ to AOP (other than co-operative), BOI and AJP g) Lower tax rate of 15% for new Co-operatives that commence manufacturing activities till 31.3.2024 Index Sr.No. Particulars 1 Individuals : Resident & Non Residents 1.1 Other than Senior Citizen & Super Senior Citizen 1.2 Senior Citizen 1.3 Super Senior Citizen 2 HUF, AOP, BOI, Other Artificial Juridical Person (AJP) 3 New Tax Regime for Individual, HUF, AOP, BOI, AJP u/s. 115BAC 4 Company 4.1 Domestic Company 4.2 Foreign Company 5 Firm & LLP 6 Local Auth...

Table of Contents: In the Union Budget 2023, the Finance Minister has made no changes in the normal tax regime. However, to make the new tax regime more appealing, various changes have been made. We have presented a comparative tax table for financial year 2023-24 for different categories of person for ease of reference Income-tax is a tax levied by the Government of India on the income of a person. The provisions governing the Income-tax are covered in the Income-tax Act, 1961, and rules made thereunder. The Income-tax Act comprises various chapters which include provisions relating to the determination of the residential status of a person in India, exemptions, computation of total income, deductions, determination of tax liability, filing of income tax return, the procedure for assessments, penalties, prosecutions, etc. Income-tax liability of an assessee is calculated on basis of his ‘Total Income’. For tax calculation, a taxpayer’s total income shall be apportioned between normal income and special income. The normal income of a taxpayer is charged to tax as per applicable tax rates as prescribed every year under the Finance Act. Further, the Government has also introduced Alternate Tax Regimes which provide an option to the taxpayer to pay tax at reduced rates provided he forgoes certain exemptions or deductions. An Individual or a HUF is not liable to pay tax if their normal income is up to the maximum exemption limit or basic exemption limit. The basic exemption li...

Table of Contents: In the Union Budget 2023, the Finance Minister has made no changes in the normal tax regime. However, to make the new tax regime more appealing, various changes have been made. We have presented a comparative tax table for financial year 2023-24 for different categories of person for ease of reference Income-tax is a tax levied by the Government of India on the income of a person. The provisions governing the Income-tax are covered in the Income-tax Act, 1961, and rules made thereunder. The Income-tax Act comprises various chapters which include provisions relating to the determination of the residential status of a person in India, exemptions, computation of total income, deductions, determination of tax liability, filing of income tax return, the procedure for assessments, penalties, prosecutions, etc. Income-tax liability of an assessee is calculated on basis of his ‘Total Income’. For tax calculation, a taxpayer’s total income shall be apportioned between normal income and special income. The normal income of a taxpayer is charged to tax as per applicable tax rates as prescribed every year under the Finance Act. Further, the Government has also introduced Alternate Tax Regimes which provide an option to the taxpayer to pay tax at reduced rates provided he forgoes certain exemptions or deductions. An Individual or a HUF is not liable to pay tax if their normal income is up to the maximum exemption limit or basic exemption limit. The basic exemption li...

Income Tax Rates for FY 2023-24 (AY 2024-25) proposed in Budget 2023 Introduction This article summarizes Income Tax Rates, Surcharge, Health & Education Cess, Special rates, and rebate/relief applicable to various categories of Persons viz. Individuals (Resident & Non Resident), HUF, Firms/LLP, Companies, Co-operative Society, Local Authority, AOP, BOI, artificial juridical persons for income liable to tax in the Financial Year 2023-24 (Assessment Year 2024-25) as proposed in Finance Bill, 2023 vide Budget announced on 01.02.2023. The following amendments related to tax rates/computation have been introduction in Budget 2023:- a) Change in tax slab of ‘New Tax Regime’ b) Increase in the rebate limit to Rs.7 lakh in the ‘New Tax Regime’ c)Extend the benefit of standard deduction to the ‘New Tax Regime’ d) Reduce the Highest surcharge rate from 37% to 25% in ‘New Tax Regime’ e) Making ‘New Tax Regime’ as default tax regime option f) Extending applicability of ‘New Tax Regime’ to AOP (other than co-operative), BOI and AJP g) Lower tax rate of 15% for new Co-operatives that commence manufacturing activities till 31.3.2024 Index Sr.No. Particulars 1 Individuals : Resident & Non Residents 1.1 Other than Senior Citizen & Super Senior Citizen 1.2 Senior Citizen 1.3 Super Senior Citizen 2 HUF, AOP, BOI, Other Artificial Juridical Person (AJP) 3 New Tax Regime for Individual, HUF, AOP, BOI, AJP u/s. 115BAC 4 Company 4.1 Domestic Company 4.2 Foreign Company 5 Firm & LLP 6 Local Auth...

O n February 1, 2023, Nirmala Sitharaman, India's Finance Minister, announced the Union Budget 2023 , which included new income tax slabs and rates under the new tax regime. The new tax structure was implemented in Budget 2020 with six slabs, which have since been reduced to five for normal persons, elderly citizens, and HUFs (Hindu Undivided Families). Furthermore, in the case of the new tax system for FY 2023-24, the basic exemption level was raised to Rs. 3 lakh from Rs. 2.5 lakh previously. However, no modifications were made to the former tax regime's tax slabs and rates for AY 2024-25, which would stay the same as the income tax slab FY 2022-23 (AY 2023-24). Let's look at the revised income tax slabs for FY 23-2024 for both the new and old tax regimes. Income Tax Slabs for HUFs and Individuals in FY 2023-24 (AY 2023-24): According to the Budget 2023 release, the new income tax slab rates for each individual for FY 23-2024 are as follows: Annual Taxable Income New Tax Regime Old Tax Regime Up to Rs.2.5 lakh Exempt Exempt Over Rs.2.5 lakh to Rs.3 lakh Exempt 5% Over Rs.3 lakh to Rs. 5 lakh 5% 5% Over Rs.5 lakh to Rs.6 lakh 5% 20% Over Rs.6 lakh to Rs. 9 lakh 10% 20% Over Rs.9 lakh to Rs.10 lakh 15% 20% Over Rs.10 lakh to Rs.12 lakh 15% 30% Over Rs.12 lakh to Rs.15 lakh 20% 30% Above Rs.15 lakh 30% 30% The majority of tax-saving investments, such as life insurance tax advantages, however, cannot be obtained if one chooses the new tax system. Income Tax Slab for Super Se...

In a country as economically and financially diverse as India, taxing every individual at the same rate would be unfair. This is why India follows a progressive tax system. This means that individuals who have higher incomes are taxed more than those who have lower incomes. This is possible by grouping individuals according to income tax slabs for the purpose of taxation. 1. What Are Income Tax Slabs? Indian taxpayers are bracketed into different income categories for easier and fairer taxation. For instance, an individual making ₹5,00,000 per annum should not have to pay the same tax as someone making ₹50,00,000 per annum. The tax slab system classifies people based on their income and taxes people progressively on the higher income that they make. At present, India has two different income tax regimes for tax slabs. The old tax regime categorized taxpayers into three different categories with taxes ranging from 5% to 30%. In the Union Budget of 2020, the Finance Minister introduced new tax slabs as an alternative. Further, budget 2023 proposed some changes to the new income tax regime, and now there are six different tax slabs for taxpayers. 2. Income Tax Slabs as Per the New and Old Tax Regime As already outlined, the new tax regime has six different income tax slabs as compared to three under the old tax regime. The income tax new tax regime has done away with most deductions and exemptions that could be claimed under the old tax regime. Apart from knowing the differen...