Income Tax Rates Slab for FY 2023-24 (AY 2024-25)

The taxation system in India is characterized by a progressive approach, where the amount of tax payable rises as income increases. In order to facilitate this approach, Income Tax slabs have been introduced in the country. The applicability of these slabs is influenced by various factors, such as the residential status of the taxpayer, the level of income earned, the category of the taxpayer, and their age. It is customary to review the Income Tax Rates in India every year after the budget is announced. This year, the Finance Ministry has announced some noticeable changes in the income-tax rates. Well, if you are searching for information on the Income Tax slabs and rates applicable for the financial year (FY) 2023-24 or Assessment year (AY) 2024-25 in India, this article can assist you in discovering the Income Tax slab for FY 2023-24, as well as details on the old and new tax regime.
Important Notes: The tax rates are the same for all categories of individuals under the New tax regime. Senior and super senior citizens will not get an increased basic exemption limit benefit in the New Tax regime. Individuals with net taxable income up to Rs 5 lakh will be eligible for tax rebate u/s 87A in both New and old/existing tax regimes. The basic exemption limit for NRIs is Rs 2.5 Lakh, irrespective of age. An additional Health and Education cess at the rate of 4% will be added to the income tax liability in all cases. Surcharge is applicable as per tax rates mentioned below for all categories mentioned above: 10% of Income tax if total income > Rs.50 lakh 15% of Income tax if total income > Rs.1 crore 25% of Income tax if total income > Rs.2 crore 37% of Income tax if total income > Rs.5 crore In the Budget 2023, the highest surcharge rate of 37% has been reduced to 25% under the new tax regime, applicable from 1st April 2023.
The Income Tax Slab rates for the Financial Year 2023-24 have undergone some changes as compared to the previous year. The New Tax Regime has the same tax rates for all categories of individuals, with no increased basic exemption limit benefit available for senior and super senior citizens. The surcharge rates have also been revised, with the highest surcharge rate of 37% being reduced to 25% in the new tax regime. It is important for taxpayers to understand the new rates and regulations to plan their finances and tax payments accordingly.