Income Tax Slabs 2023-24 Details Here. It is vital to be aware of the income tax brackets, or rates of tax for FY 2022-23 when you calculate your income tax. What are the tax rates for the year 2022-23? are tax rates the same for males and females and what is the base exemption of income tax in India other such questions can be addressed within this post.
New Income Tax Slabs Changes 2023-24:
When the budget for the United States Budget 2023 was announced at the Indian Parliament on February 1, while Finance Minister, Nirmala S Sitharaman delivered her much-anticipated Budget speech, the eye was on the speech regarding taxes. The NDA-led central government headed by Prime Minister Narendra Modi was anticipated to give the average taxpayer tax breaks this year since it is the final budget prior to the 2024 Lok Sabha elections.
On the other hand, the slowdown in the economy is impacting tax revenues as well as state spending is rising. Businesses, industries as well as market experts are looking forward to the NDA government’s budget final prior to the Lok Sabha elections will focus focused on job creation as well as inclusive growth.
The Economic Survey noted in its section on the inclusive growth of India “Both official and unofficial sources confirm that employment levels have risen in the current financial year, as the Periodic Labour Force Survey (PLFS) shows that the urban unemployment rate for people aged 15 years and above declined from 9.8 percent in the quarter ending September 2021 to 7.2 percent a year later (quarter ending September 2022). This is accompanied by an improvement in the labor force participation rate (LFPR) as well, confirming the emergence of the economy out of the pandemic-induced slowdown early in 2022-23”.
The Income Tax slabs of India are split into two tax regimes:
- Old Tax Regime
- New Tax Regime
The Old Tax Regime is one that operates in exactly the same way for a long time, with the highest rate of slabs and deducts. The Tax Regime has been changed during Budget 2020 with reduced Slab rates, but no deductions.
You can select between the old and new tax regimes for calculating income tax. Which is the better option? Depends on your earnings and the investments that you use to calculate deductions.
For some, the New Tax Regime is more beneficial if they do not use any Tax Savings options to claim deductions while for others the old tax regime is superior.
Let us look at the Old Tax Regime and the new Tax Regime Slab rates for all ages.
INCOME TAX SLABS FOR AGES BELOW 60 YEARS
The first thing to consider is those who are younger than 60 years old, which aren’t senior citizens in India. Below are income tax slabs along with the old tax regime ( and Deductions available):
Old Tax Regime Slab Rates 2022-23
| Income Tax Slabs | New Tax Rates on Taxes for Ages Below 60 years |
|---|---|
| Rs, 0 – Rs. 2,50,000 | 0% |
| Rs. 2,50,000 – Rs. 5,00,000 | 5% |
| Rs. 5,00,000 – Rs. 10,00,000 | 20% |
| More than the amount of. 10,00,000 | 30% |
Old Tax Slab Rates of the Regime for Ages under 60 Years
As can be seen in the Old Tax Slab Rates table for Regime Slabs You can avail of basic exemption on earnings of up. 2.5 Lakhs in a financial year.
However, if you are able to invest some money or claim deductions to bring your tax-deductible income lower than the amount of Rs. five Lakhs during FY 2022-23 you will be eligible for tax rebates under Section 87A. This is based on which your tax rate will be at the rate of Rs. 0, even if you fall into the 5% tax bracket.
Let’s now look at New Tax Regime slab rates.
New Tax Regime Slab Rates 2023-24
| Income Tax Slabs | The new tax rates for Taxpayers who are under 60 years old |
|---|---|
| Rs, 0 – Rs. 2,50,000 | 0% |
| Rs. 2,50,000 – Rs. 5,00,000 | 5% |
| Rs. 5,00,000 – Rs. 7,50,000 | 10% |
| Rs. 7,50,000 – Rs. 10,00,000 | 15% |
| Rs. 10,00,000 – Rs. 12,50,000 | 20% |
| Rs. 12,50,000 – Rs. 15,00,000 | 25% |
| More than more than. 15,00,000 | 30% |
New Tax Slab Rates in the Regime for those under 60
It is crucial to remember that you cannot claim any deduction under the New Tax regime, which means that the gross amount you earn will count as considered to be tax-deductible income upon which tax on income is calculated in contrast to the Old Tax Regime where you could claim deductions in order to reduce income tax.
Let us see the Income Tax Slab Rates for Senior Citizens.
INCOME TAX SLABS FOR AGES BETWEEN 60 TO 79 YEARS (SENIOR CITIZENS)
We will first see the old tax regime slab rates.
Old Tax Regime Slab Rates 2022-23
| Income Tax Slabs | Old Tax Rates for Senior Citizens |
|---|---|
| Rs, 0 – Rs. 3,00,000 | 0% |
| Rs. 3,00,000 – Rs. 5,00,000 | 5% |
| Rs. 5,00,000 – Rs. 10,00,000 | 20% |
| More than 1 lakh rupees. 10,00,000 | 30% |
Old Tax Regime Slab Rates for Senior Citizens
As can be seen above the rates of the Old Tax Regime Slab for seniors provide only a small amount of relief to seniors in India because their primary exemption is at Rs. 3. Lakhs for FY 2022-23 and they aren’t required to pay income tax.
Also, tax relief under Section 87A applies to them, too in the event that their annual income is less than Rs. 5 Lakhs in a single financial year. This tax relief under section 87A is applicable to the New Tax Regime.
We are now seeing new tax slab rates for seniors.
New Tax Regime Slab Rates 2023-24
| Income Tax Slabs | New Tax Rates for Senior Citizens |
|---|---|
| Rs, 0 – Rs. 2,50,000 | 0% |
| Rs. 2,50,000 – Rs. 5,00,000 | 5% |
| Rs. 5,00,000 – Rs. 7,50,000 | 10% |
| Rs. 7,50,000 – Rs. 10,00,000 | 15% |
| Rs. 10,00,000 – Rs. 12,50,000 | 20% |
| Rs. 12,50,000 – Rs. 15,00,000 | 25% |
| More than the amount of. 15,00,000 | 30% |
New Tax Regime Slab Rates for Senior Citizens
The most important thing to remember is: New Tax Regime slab rates for seniors are the same as for non-senior citizens as seen above. If anyone in their senior years wants to go with the new tax system to calculate their income tax, they’ll have similar slab rates to those of non-senior citizens, and there is no benefit additional that is not available in the old Tax Regime.
You may also read the additional tax benefits for seniors for more information about tax benefits that are available under the Old Tax Regime.
We will now look at the Income Tax Slabs of super senior citizens
INCOME TAX SLABS FOR AGES ABOVE 80 YEARS (SUPER SENIOR CITIZEN)
We will first see the old Tax Regime slab tax rates applicable to super-senior citizens.
Old Tax Regime Slab Rates 2022-23
| Income Tax Slabs | Old Tax Rates for Super Senior Citizens |
|---|---|
| Rs, 0 – Rs. 5,00,000 | 0% |
| Rs. 5,00,000 – Rs. 10,00,000 | 20% |
| More than the amount of. 10,00,000 | 30% |
Old Tax Regime Slab Rates for Super Senior Citizen
As you can see the fact is that there is no tax bracket for super-senior citizens who are super senior citizens in India. Therefore, they don’t need to pay income tax for incomes that is less than Rs. 5 Lakhs in FY 2022-23. Other tax brackets are similar to non-senior citizens.
Let’s look at the new tax system for seniors who are super senior.
New Tax Regime Slab Rates 2023-24
| Income Tax Slabs | New Tax Rates for Super Senior Citizens |
|---|---|
| Rs, 0 – Rs. 2,50,000 | 0% |
| Rs. 2,50,000 – Rs. 5,00,000 | 5% |
| Rs. 5,00,000 – Rs. 7,50,000 | 10% |
| Rs. 7,50,000 – Rs. 10,00,000 | 15% |
| Rs. 10,00,000 – Rs. 12,50,000 | 20% |
| Rs. 12,50,000 – Rs. 15,00,000 | 25% |
| More than more than. 15,00,000 | 30% |
New Tax Regime Slab Rates for Super Senior Citizen
It is important to note: New Tax Regime slab rates for seniors are the same as for non-senior citizens as mentioned above. If a super senior citizen decides to opt for a new tax regime to calculate their income tax, they’ll have similar slab rates to those of non-senior citizens and will have no additional benefits, as in the old Tax Regime.
You may also read the additional tax benefits available to super-senior citizens to learn more about tax benefits that are available under the Old Tax Regime.
These were the income tax slabs in FY 2022-23 that were for various age categories.
Let’s see how the tax on income is calculated through examples in the video.
WHAT IS THE BASIC EXEMPTION LIMIT FOR INCOME TAX IN INDIA?
The exemption limit for the basic exemption based on the old tax regime is shown in the following manner:
| Age Groups | Basic Exemption Limit in Old Tax Regime |
|---|---|
| Below 60 Years | Rs. 2,50,000 |
| Senior Citizen (Age 60 to 79 Years) | Rs. 3,00,000 |
| Super Senior Citizen (Age above 80 Years) | Rs. 5,00,000 |
Basic Exemption Limits in Old Tax Regime
The limits above are applicable only if you select the Old Tax Regime during FY 2022-23. If you are within these limits, you do not need to pay tax on income depending on the age bracket that you are a part of.
With the New Tax Regime, the minimum exemption limit is at. 2.5 Lakhs irrespective of your age.
FAQs
ARE THERE SEPARATE SLAB RATES FOR MALES AND FEMALES?
There aren’t different income tax slab rates for females and males in India. Everyone is treated equally in the financial realm.
HOW CAN I CALCULATE MY INCOME TAX?
It is easy to calculate your tax on income with the calculator I designed for you. Calculate your tax using the following calculator:
WHICH IS BETTER – THE OLD VS NEW TAX REGIME
We found that the amount of Rs. 15 Lakhs is the maximum income that you’ll be paying exactly the same tax on income in both tax regimes, given that you earn an amount of Rs. 2.5 Lakhs investments for deduction in the old tax regime.
As the New Tax Regime has cut tax slab rates, the tax on income will be lower on the Rs. 15 Lakhs earnings, but without deductions benefits.
It is based on your income and the investments you make to decide between the New or Old Tax Regime and which one is best for you.
The rule of thumb is that if your annual income exceeds the amount of Rs. 15 Lakhs it is recommended to go for the New Tax Regime without any investment however if your earnings are less than R. 15 Lakhs You can avail of the advantage of the deduction options that are available and select Old Tax Regime to avoid paying additional income tax.
CONCLUSION
As mentioned above the elderly are able to take advantage of Old Tax Regime slab rates. However, with the new tax system, people of all ages and genders are treated the same as when the calculation of tax on income is concerned in FY 2022-23.
The income tax slabs above will be in effect for the fiscal year 2022-23 which could change in the coming years, so we must be aware to stay informed. You can subscribe to my YouTube Channel where I write about my personal finances to allow you to stay informed about recent developments.
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