Income Tax Slabs for Salaried Individuals for FY 2023-24 (AY 2024-25)
TaxGyata Team | 01-Feb-2023
Income Tax Slabs for Salaried Individuals for FY 2023-24 (AY 2024-25)
What is an income tax slab?
Income tax slab refers to a range of income levels that are taxed at different tax rates set by the government. These slabs define how much tax an individual or a company needs to pay based on their income. The tax rate increases with income level. In India, the tax slabs are reviewed and updated annually by the government as part of the Union Budget.
In the Budget 2023-24, the number of income tax slabs has been reduced from 6 to 5 under the new tax regime.
Additionally, the rebate under Section 87A has been increased from the current limit of Rs 5 lakh to Rs 7 lakh. As a result, salaried employees who choose the new tax regime and have an income up to Rs 7 lakh will be exempt from paying any taxes.
Income tax slab rates for salaried employees under the New Regime for FY 2023-24
|
Income range |
Income tax rate |
|
Up to Rs 3,00,000 |
Nil |
|
Rs 3,00,000 to Rs 6,00,000 |
5% on income that exceeds Rs 3,00,000 |
|
Rs 6,00,000 to Rs 9,00,000 |
Rs 15,000 + 10% on income more than Rs 6,00,000 |
|
Rs 9,00,000 to Rs 12,00,000 |
Rs 45,000 + 15% on income more than Rs 9,00,000 |
|
Rs 12,00,000 to Rs. 1500,000 |
Rs 90,000 + 20% on income more than Rs 12,00,000 |
|
Above Rs 15,00,000 |
Rs 1,50,000 + 30% on income more than Rs 15,00,000 |
Income tax slab rates under the Old Regime for FY 2023-24
For individuals aged below 60 years
|
Income range |
Income tax rate |
|
Up to Rs 2,50,000 |
Nil |
|
Rs 2,50,000 - Rs 5,00,000 |
5% of the total income that is more than Rs.2.5 lakh + 4% cess |
|
Rs 5,00,000 - Rs 10,00,l000 |
20% of the total income that is more than Rs.5 lakh + Rs.12,500 + 4% cess |
|
Above Rs 10,00,000 |
30% of the total income that is more than Rs.10 lakh + Rs.1,12,500 + 4% cess |
For individuals aged above 60 years to 80 years (senior citizens)
|
Income range |
Income tax rate |
|
Up to Rs 3,00,000 |
NIL |
|
Above Rs 3,00,000 - Rs.5,00,000 |
5% of the total income that is more than Rs.3 lakh + 4% cess |
|
Above Rs 5,00,000 - Rs 10,00,000 |
20% of the total income that is more than Rs 5 lakh + Rs.10,500 + 4% cess |
|
Above Rs.10 lakh |
30% of the total income that is more than Rs.10 lakh + Rs.1,10,000 + 4% cess |
For individuals aged more than 80 years (super senior citizens)
|
Income range |
Income tax rate |
|
Up to Rs 5,00,000 |
NIL |
|
Above Rs 5,00,000 - Rs.10,00,000 |
20% of the total income that is more than Rs 5 lakh + 4% cess |
|
Above Rs 10 lakh |
30% of the total income that is more than Rs.10 lakh + Rs.1,00,000 + 4% cess |
Rate of surcharge for FY 2023-24
In respect of an Individual, the rate of surcharge for the Financial Year 2023-24 shall be as under:
|
Range of total income |
Rate of surcharge |
|
Up to Rs 50 lakhs |
NIL |
|
Above Rs 50 lakh - up to Rs 1 crore |
10% |
|
Above Rs 1 crore - up to Rs 2 crore |
15% |
|
Above Rs 2 crore - up to Rs 5 crore |
25% |
|
Above Rs 5 crore |
25% |
What is the rate of health and education cess?
Every person is liable to pay health and education cess at the rate of 4% on the amount of income tax plus surcharge.