Income Tax Slabs AY2023-24 (FY2022-23 – 01-04-2022 to 31-03-2023): This income tax slab will be applicable for the income period 01-04-2022 to 31-03-2023 for the assessment year 2023-24. The last date for filing income tax returns for the year 2023-24 is 31 July 2023. Income tax slab rates are available here for both the tax regimes i.e. old tax regime and new tax regime.
For assessment year 2023-24, we have provided income tax slabs both under the old tax regime and the new tax regime. Some taxpayers are confused about which tax regime applies to their income. We want to make one thing clear here that you can choose between the old tax regime and the new tax regime, where you will get bigger tax benefits.
Income tax slab assessment year 2023-24 old tax system
Income tax slab assessment year 2023-24 old tax system: The following table shows the income tax slabs for assessment year 2023-24 under the old tax regime. For the financial year 2022-23, these income tax rates will be applicable to income earned from April 1, 2022 to March 31, 2023. You can also check your income tax slab for 2023-24 under the new tax regime. The taxpayer has the option to pay tax under the old tax regime or the new tax regime for the year 2023-24. You can choose where you have to cut back to save money.
| income limit | tax rate |
|---|---|
| under 60 years of age | |
| Up to Rs. 2.5 lakh | Zero |
| Rupee. 2 lakh to 5 lakh | 5% (total income less Rs. 2 lakh) |
| Rupee. 5 lakh to 10 lakh | Rupee. Rs 12500 + 20% (total income less Rs 5 lakh) |
| above 10 lakhs | Rupee. Rs 1,12,500 + 30% (total income less Rs 10 lakh) |
| Resident Senior Citizen (60 years or more in the last year) | |
| Up to Rs. 3 lakhs | Zero |
| Rupee. 3 lakh to 5 lakh | 5% (total income less Rs. 3 lakh) |
| Rupee. 5 lakh to 10 lakh | Rupee. Rs 10,000 + 20% (total income less Rs 5 lakh) |
| above 10 lakhs | Rupee. Rs 1,10,000 30% (Total income less Rs 10 lakh) |
| Resident Very Senior Citizen (80 years or more in the last year) | |
| Up to Rs. 5 lakhs | Zero |
| Rupee. 5 lakh to Rs. 10 lakhs | 20% of (total income less Rs. 5 lakh) |
| Above Rs. 10 lakhs | Rupee. Rs 1,00,000 + 30% (total income less Rs 10 lakh) |
| Exemption under section 87A – Resident individuals with net income up to Rs. 5,00,000 may be eligible for exemption under section 87A. The exemption before calculating Health and Education Cess is deductible from income tax and is equal to 100% of the income tax or Rs. 12,500. | |
| Health and Education Cess (HEC): 4% of income tax | |
| In case of Senior Citizen or Very Senior Citizen: Any resident individual whose 60th/80th birthday falls on 1st April 2023 will be deemed to have completed 60/80 years of age as on 31st March 2023 i.e. previous year 2022-23 (age 2023-24) and hence he will be eligible for Will be eligible. Higher basic exemption limit of Rs. 3 lakh and 5 lakh. | |
| surcharge | |
| Total income up to Rs 50 lakh | Zero |
| Above Rs. 50 lakh to 1 crore | 10% |
| 1 crore to 2 crore | 15% |
| 2 crore to 5 crore | 25% |
| above 5 crores | 37% |
| In no case will the surcharge under sections 111A, 112A and 112 on dividends and capital gains exceed 15%. | |
Income tax slab assessment year 2023-24 new tax system
Income tax slab assessment year 2023-24 new tax regime: The following table shows the income tax slabs under the new tax regime for assessment year 2023-24. The tax rates will be applicable on income earned between 01-04-2022 and 31-03-2023 i.e. during the financial year 2022-23. Depending on your benefits, you can choose between the old and new tax regime.
| Income Tax Slab Assessment Year 2023-24 (New Tax System) Section 115BAC Applicable for all age groups |
|
|---|---|
| Up to Rs. 2,50,000 | Zero |
| Rupee. 2,50,001 to Rs. 5,00,000 | 5% |
| Rs 5,00,001 to Rs 7,50,000 | 10% |
| Rs 7,50,001 to Rs 10,00,000 | 15% |
| Rs 10,00,001 to Rs 12,50,000 | 20% |
| Rs 12,50,001 to Rs 15,00,000 | 25% |
| above 15,00,000 | 30% |
| Health and Education Cess (HEC): 4% of income tax | |
| surcharge | |
| Total income up to Rs 50 lakh | Zero |
| Above Rs. 50 lakh to 1 crore | 10% |
| 1 crore to 2 crore | 15% |
| 2 crore to 5 crore | 25% |
| above 5 crores | 37% |
Deductions are allowed or not allowed (old tax regime vs new tax regime)
There are certain deductions that are not allowed under the new tax regime, as well as certain exemptions. The deductions listed here are those that are allowed under the old tax regime and are not allowed under the new tax regime. A taxpayer should carefully assess his or her individual circumstances before choosing the most advantageous tax arrangement.
| cut | Old tax system (AY2023-24) | New tax regime (year 2023-24) |
| Exemption under section 87A | Rs 12500 (income up to Rs 5 lakh) | Rs 12500 (income up to Rs 5 lakh) |
| standard deduction | 50000 | , |
| Leave Travel Allowance (LTA) | Yes | No |
| House Rent Allowance HRA Exemption | Yes | No |
| Food allowance Rs. Rs.50/- with two meals per day and other allowances | Yes | No |
| Perks for official purposes | Yes | Yes |
| entertainment allowance | Yes | No |
| Professional tax | Yes | No |
| Self-occupied or vacant property, home loan interest under section 24B | Yes | No |
| Interest on home loan for rented property | Yes | Yes |
| Deduction 80C (LIC/EPF/ELSS/PPF/FD/Children's tuition fees etc.) | Yes | No |
| NPS employee's own contribution | Yes | No |
| NPS employer contribution | Yes | Yes |
| 80D medical insurance | Yes | No |
| 80U disabled person | Yes | No |
| 80E interest on education loan | Yes | No |
| 80EEB interest on electric vehicle loan | Yes | No |
| 80G Donation to political party/trust | Yes | No |
| 80TTA and 80TTB Savings Bank Interest | Yes | No |
| Other deductions under Chapter VI-A | Yes | No |
| conveyance allowance | Yes | Yes |
| Transport allowance for specially abled person | Yes | Yes |
| daily allowance | Yes | Yes |
| Exemption on leave encashment under section 10 (10AA) | Yes | Yes |
| Exemption on gratuity under section 10(10) | Yes | Yes |
| Exemption 10 on voluntary retirement (10C) | Yes | Yes |
| Deduction on family pension income | Yes | Yes |
| 80CCH – Contribution to Agniveer Corpus Fund | Yes | did not exist |
As per the above table, certain deductions are not allowed under the new tax system for 2023-2024. Therefore, the taxpayer should determine how much tax he will pay under both the regimes before choosing the option.
Q. Which income tax slab is applicable to me for AY2023-24?
In AY2023-24, you will be taxed under the old or new regime, depending on the tax regime you choose. The first step is to calculate income tax under the old tax regime and then under the new tax regime. Choose the tax regime that offers you the most tax benefits.
