New regime tax slab 2023-24

Introduction: Each fiscal year, the finance ministry of India announces new income tax slabs. Nirmala Sitharaman, the Finance Minister of India, made public the Union Budget for 2023 on February 1, 2023. The most recent budget included specific modifications to the current income tax slab. There are now two different income tax systems. Tax incentives are available to individuals under both the present and previous regimes. According to the Ministry of Finance, the income tax rebate under the recently introduced tax system has been extended from the previous limitation of up to Rs. 5 lakhs to Rs. 7 lakhs. For the updated tax regime, there were also a few modifications to the income tax slab. In addition, the surcharge rate on revenue beyond Rs. 5 crores has been lowered from 37% to 25%. Financial Year 2023–24 Updated Income Tax Slabs under the New Tax Regime: Taxable Income Income Tax Rate Up to Rs. 3.00 Lakhs 0% Rs 3.00 Lakhs – 6.00 Lakhs 5% Rs. 6.00 Lakhs – 9.00 Lakhs 10% Rs. 9.00 Lakhs – 12.00 Lakhs 15% Rs. 12 Lakhs – 15.00 Lakhs 20% Above Rs. 15.00 Lakhs 30% What is a slab of income tax? The income tax slab is described as the structure under which taxpayers on their own behalf are required to pay their income taxes. A person might fall into a different tax bracket depending on their income. As a result, people with higher incomes will be liable for higher taxes. To keep the nation’s tax system equitable, the slab plan was implemented. Every time a budget declaration i...

While there are merits and demerits of both the old and new regimes, it becomes cumbersome for taxpayers to pick the best-suited tax regime. Here is a simplified assessment of both the regimes to answer a few pertinent questions. The Government of India introduced a new optional tax rate regime starting from April 1, 2020 (FY 2020-21), for individuals and the Hindu undivided family (HUF). Consequently, Section 115 BAC was to the Income Tax Act, 1961 (the Act) that prescribed reduced tax rates for individual taxpayers and HUFs on forgoing specified tax deductions or exemptions. Based on the amendments proposed in Union Budget 2023, the new tax regime has been made as a default one, and the taxpayers will have to select the old tax regime if they wish to use it. In a major boost to the new income tax regime and to make it more pleasing to the middle-class common individual, the government has announced significant changes to the new income tax regime. The basic exemption limit in the new tax regime has been increased to INR 3 lakh, which was INR 2.5 lakh earlier. Also, a tax rebate on income earned up to INR 7 lakh, which was INR 5 lakh earlier under section 87A. It is to be noted that the old tax regime has enough room for claiming deductions against various allowances forming part of salary (eg. HRA, LTA, etc) and also for specified investments/ expenses such as Public Provident Fund (PPF), National Pension Scheme (NPS), repayment of housing loan, payment of tuition fees, ...

PDF In TallyPrime Release 3.0, the income tax in all the employee masters is calculated based on the latest income tax slab rates announced in Finance Bill 2023-24. There is no change in the income tax slab rates for the employees with the regular tax regime, and you can view the details in the Income Tax Computation report, as always. In TallyPrime Release 3.0, the taxable income slabs are updated with definite values for better clarity and understanding of tax calculation. • Press Alt+G (Go To) > type or select Income Tax Computation and press Enter. • Select the Employee and press Enter. • Drill down from the 10. Tax on Total Income section. You can view the income slabs and the respective tax rates, as shown below: TallyPrime Release 3.0 introduces the amended income tax slab rates for the employees with the new tax regime, as per Finance Bill 2023-24. This enables you to view the Tax Amount as per the latest income tax slab rates declared by the department. As a result, the Income Tax Computation report, Annexure II to 24Q, and Form 16 display values as per the latest income tax slab rates. For employees beyond the rebate limit, you can drill down fr om the 10. Tax on Total Income section of the Income Tax Computation report and view the the income tax as per the latest slab rates, as shown below: Moreover, Standard Deduction was always applicable to the employees with the regular tax regime. As per the Finance Bill 2023-24, the employees under the new tax regime will...

Income tax is levied on the income earned by all the individuals, HUF, partnership firms, LLPs and Corporates as per the Income Tax Act of India. In the case of individuals, tax is not levied at a flat rate but as per the slab system. If their income is above the minimum threshold limit (known as the basic exemption limit), then people will have to file income tax returns and pay the applicable taxes. The income tax slabs are different under the old and the new tax regimes. Further, the slab rates for individuals opting for the old tax regime are divided into three categories: • Individuals (Indian Residents aged less than 60 years + All the non-residents will be covered in this grouo irrespective of their age) • Resident Senior citizens ( 60 to 80 years of age) • Resident Super senior citizens (aged more than 80 years) 1. What Is Income Tax Slab? In India, the Income Tax applies to individuals based on a slab system, where different tax rates are assigned to different income ranges. This means that as a person's income increases, the tax rates also increase. This type of taxation allows for a fair and progressive tax system in the country. The income tax slabs are revised periodically, typically during each budget. These slab rates vary for different groups of taxpayers. Let us take a look at all the slab rates applicable for FY 2022-23 (AY 2023-24) and FY 2023-24(AY 2024-25). 2. Income Tax Slab Rates For FY 2022-23 (AY 2023-24) a. New Tax regime – Income tax slab rate fo...

While there are merits and demerits of both the old and new regimes, it becomes cumbersome for taxpayers to pick the best-suited tax regime. Here is a simplified assessment of both the regimes to answer a few pertinent questions. The Government of India introduced a new optional tax rate regime starting from April 1, 2020 (FY 2020-21), for individuals and the Hindu undivided family (HUF). Consequently, Section 115 BAC was to the Income Tax Act, 1961 (the Act) that prescribed reduced tax rates for individual taxpayers and HUFs on forgoing specified tax deductions or exemptions. Based on the amendments proposed in Union Budget 2023, the new tax regime has been made as a default one, and the taxpayers will have to select the old tax regime if they wish to use it. In a major boost to the new income tax regime and to make it more pleasing to the middle-class common individual, the government has announced significant changes to the new income tax regime. The basic exemption limit in the new tax regime has been increased to INR 3 lakh, which was INR 2.5 lakh earlier. Also, a tax rebate on income earned up to INR 7 lakh, which was INR 5 lakh earlier under section 87A. It is to be noted that the old tax regime has enough room for claiming deductions against various allowances forming part of salary (eg. HRA, LTA, etc) and also for specified investments/ expenses such as Public Provident Fund (PPF), National Pension Scheme (NPS), repayment of housing loan, payment of tuition fees, ...

PDF In TallyPrime Release 3.0, the income tax in all the employee masters is calculated based on the latest income tax slab rates announced in Finance Bill 2023-24. There is no change in the income tax slab rates for the employees with the regular tax regime, and you can view the details in the Income Tax Computation report, as always. In TallyPrime Release 3.0, the taxable income slabs are updated with definite values for better clarity and understanding of tax calculation. • Press Alt+G (Go To) > type or select Income Tax Computation and press Enter. • Select the Employee and press Enter. • Drill down from the 10. Tax on Total Income section. You can view the income slabs and the respective tax rates, as shown below: TallyPrime Release 3.0 introduces the amended income tax slab rates for the employees with the new tax regime, as per Finance Bill 2023-24. This enables you to view the Tax Amount as per the latest income tax slab rates declared by the department. As a result, the Income Tax Computation report, Annexure II to 24Q, and Form 16 display values as per the latest income tax slab rates. For employees beyond the rebate limit, you can drill down fr om the 10. Tax on Total Income section of the Income Tax Computation report and view the the income tax as per the latest slab rates, as shown below: Moreover, Standard Deduction was always applicable to the employees with the regular tax regime. As per the Finance Bill 2023-24, the employees under the new tax regime will...

Income tax is levied on the income earned by all the individuals, HUF, partnership firms, LLPs and Corporates as per the Income Tax Act of India. In the case of individuals, tax is not levied at a flat rate but as per the slab system. If their income is above the minimum threshold limit (known as the basic exemption limit), then people will have to file income tax returns and pay the applicable taxes. The income tax slabs are different under the old and the new tax regimes. Further, the slab rates for individuals opting for the old tax regime are divided into three categories: • Individuals (Indian Residents aged less than 60 years + All the non-residents will be covered in this grouo irrespective of their age) • Resident Senior citizens ( 60 to 80 years of age) • Resident Super senior citizens (aged more than 80 years) 1. What Is Income Tax Slab? In India, the Income Tax applies to individuals based on a slab system, where different tax rates are assigned to different income ranges. This means that as a person's income increases, the tax rates also increase. This type of taxation allows for a fair and progressive tax system in the country. The income tax slabs are revised periodically, typically during each budget. These slab rates vary for different groups of taxpayers. Let us take a look at all the slab rates applicable for FY 2022-23 (AY 2023-24) and FY 2023-24(AY 2024-25). 2. Income Tax Slab Rates For FY 2022-23 (AY 2023-24) a. New Tax regime – Income tax slab rate fo...

Introduction: Each fiscal year, the finance ministry of India announces new income tax slabs. Nirmala Sitharaman, the Finance Minister of India, made public the Union Budget for 2023 on February 1, 2023. The most recent budget included specific modifications to the current income tax slab. There are now two different income tax systems. Tax incentives are available to individuals under both the present and previous regimes. According to the Ministry of Finance, the income tax rebate under the recently introduced tax system has been extended from the previous limitation of up to Rs. 5 lakhs to Rs. 7 lakhs. For the updated tax regime, there were also a few modifications to the income tax slab. In addition, the surcharge rate on revenue beyond Rs. 5 crores has been lowered from 37% to 25%. Financial Year 2023–24 Updated Income Tax Slabs under the New Tax Regime: Taxable Income Income Tax Rate Up to Rs. 3.00 Lakhs 0% Rs 3.00 Lakhs – 6.00 Lakhs 5% Rs. 6.00 Lakhs – 9.00 Lakhs 10% Rs. 9.00 Lakhs – 12.00 Lakhs 15% Rs. 12 Lakhs – 15.00 Lakhs 20% Above Rs. 15.00 Lakhs 30% What is a slab of income tax? The income tax slab is described as the structure under which taxpayers on their own behalf are required to pay their income taxes. A person might fall into a different tax bracket depending on their income. As a result, people with higher incomes will be liable for higher taxes. To keep the nation’s tax system equitable, the slab plan was implemented. Every time a budget declaration i...