In India, Tax on Individuals is based on a slab system, where different tax rates are assigned to different income ranges. So if a person’s income increases, the tax rates also increase. Slab rates also vary based on the age of the individual. These slab rates are revised on each budget announcement.
Income Tax Slab for FY 2023-24 (AY 2024-25)
A new tax regime (also known as an alternative tax regime) is optional for the Assessment Year 2023-24.
| Net Income Range | Tax rate |
| Up to Rs. 3,00,000 | Nil |
| From Rs. 3,00,001 to Rs. 6,00,000 | 5% |
| From Rs. 6,00,001 to Rs. 9,00,000 | 10% |
| From Rs. 9,00,001 to Rs. 12,00,000 | 15% |
| From Rs. 12,00,001 to Rs. 15,00,000 | 20% |
| Above Rs. 15,00,000 | 30% |
Old tax regime (Individuals below the age of 60 years and NRIs)
| Net Income Range | Tax rate |
| Up to Rs. 2,50,000 | Nil |
| From Rs. 2,50,000 to Rs. 5,00,000 | 5% |
| From Rs. 5,00,000 to Rs. 10,00,000 | 20% |
| Above Rs. 10,00,000 | 30% |
Tax slabs for Senior Citizens (Aged 60 years but less than 80 years)
| Net Income Range | Tax rate |
| Up to Rs. 3,00,000 | Nil |
| From Rs. 3,00,000 to Rs. 5,00,000 | 5% |
| From Rs. 5,00,000 to Rs. 10,00,000 | 20% |
| Above Rs. 10,00,000 | 30% |
Tax slabs for Super Senior Citizens (Aged 80 years and above)
| Net Income Range | Tax rate |
| Up to Rs. 5,00,000 | Nil |
| From Rs. 5,00,000 to Rs. 10,00,000 | 20% |
| Above Rs. 10,00,000 | 30% |
Rate of Surcharge
- 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
Conditions for Opting for the New Tax Regime
Following Deductions and exemptions not allowed under new regime are-
- Leave Travel Allowance
- Conveyance allowance
- House Rent Allowance
- Relocation allowance
- Children education allowance
- Professional tax
- Daily expenses in the course of employment
- Helper allowance
- Deduction under Chapter VI-A deduction (80C,80D, 80E etc.) (Except Section 80CCD(2))
- Standard deduction on salary
- Interest on housing loan (Section 24)
- Other special allowances (Section 10(14))
Deductions that are Allowed under New Tax Rate Regime
- Investment in Notified Pension Scheme under section 80CCD(2)
- Conveyance allowance for expenditure incurred for travelling to work
- Depreciation under section 32, except additional depreciation
- Deduction for employment of new employees under section 80JJAA
- Any allowance for travelling for employment or on transfer
- Transport allowance for specially-abled people
Income Tax Deduction Under 80C
February 26, 2024[…] Section 80C of the Income Tax Act of India allows a maximum deduction of up to Rs 1.5 lakh every year. This deduction is available only for individual taxpayers & HUF. Corporates, Firms are not qualified to avail deduction under section 80C. […]