Budget 2024-25: What are the current income tax slabs?

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Budget 2024-25: What are the current income tax slabs?



The income tax slabs differ between the previous and current tax regimes. Additionally, the slab rates in the former tax regime were divided into three divisions.


Indian inhabitants under 60 years old, plus all non-residents

60–80 years: Resident Senior Citizens

Over 80 years: Resident Super Senior Citizens


Budget 2024 Update: Tax Slabs Under the New Regime

The Budget 2024 changed the tax slabs in the New Regime, allowing taxpayers to save an additional Rs. 17,500 in taxes. Furthermore, the standard deduction has been increased to Rs. 75,000 under this regime, while the family pension deduction has been adjusted to Rs. 25,000 from Rs. 15,000. This is applicable for the fiscal year 2024-25

 

The following is a comparison of the tax slabs after and before the introduction of the budget


Tax Slab for FY 2023-24
Tax Rate 

Tax Slab for FY 2024-25

Tax Rate
Upto ₹ 3 lakh 
Nil
Upto ₹ 3 lakh 
Nil
₹ 3 lakh - ₹ 6 lakh
5%
₹ 3 lakh - ₹ 7 lakh
5%
₹ 6 lakh - ₹ 9 lakh 
10%
₹ 7 lakh - ₹ 10 lakh 
10
₹ 9 lakh - ₹ 12 lakh 
15%
₹ 10 lakh - ₹ 12 lakh 
15%
₹ 12 lakh - ₹ 15 lakh
20%
₹ 12 lakh - ₹ 15 lakh
20%
More than 15 lakh
30%
More than 15 lakh
30%

What is an Income Tax Slab?


In India, the Income Tax is levied on people using a slab system, with different tax rates assigned to different income levels. Tax rates rise in proportion to an individual's income. This type of taxation promotes a more equitable and progressive tax structure in the country. Income tax brackets are updated on a regular basis, usually around budget season. The slab rates differ for different types of taxpayers.

 

Let's look at all of the slab rates for FY 2023-24 (AY 2024-25)



For the Old Regime, a tax credit of up to Rs 12,500 is eligible if the total income does not exceed Rs 5,00,000 (not applicable for NRIs).

 

NOTE:

 

The income tax exemption ceiling is Rs 2,50,000 for individuals, HUFs under 60, and NRIs.

  • Senior citizens above the age of 60 but under the age of 80 are eligible for up to Rs 3,00,000.
  • For super elderly individuals over the age of 80, the maximum amount is Rs 5,00,000.
  • Surcharges and cess will be applied over and above the tax rates.

However, under the new tax regime, a rebate of up to Rs.25,000 is allowed if the total income does not exceed Rs. 7,00,000. (Not applicable to NRIs)

 

* Tax rebate equal to an amount, tax payable is when total income exceeds Rs 7,00,000. (Not applicable to NRIs)

 

NOTE:

 

Individuals and HUFs opting for the new system can claim an income tax exemption of up to Rs 3,00,000 each.

In addition to the tax rates, a surcharge and cess will apply.


Comparison of Tax Rates Between New and Old Tax Regimes



                                                                    Old Tax Regime (FY 2022-23 and FY 2023-24)
New Tax Regime
Income Slabs
Age < 60 years & NRIs
Age of 60 Years to 80 years
Age above 80 Years
FY 2022-23
FY 2023-24
Up to ₹2,50,000
NIL
NIL
NIL
NIL
NIL
₹2,50,001 - ₹3,00,000
5%
NIL
NIL
5%
NIL
₹3,00,001 - ₹5,00,000
5%
5%
NIL
5%
5%
₹5,00,001 - ₹6,00,000
20%
20%
20%
10%
5%
₹6,00,001 - ₹7,50,000
20%
20%
20%
10%
10%
₹7,50,001 - ₹9,00,000
20%
20%
20%
15%
10%
₹9,00,001 - ₹10,00,000
20%
20%
20%
15%
15%
₹10,00,001 - ₹12,00,000
30%
30%
30%
20%
15%
₹12,00,001 - ₹12,50,000
30%
30%
30%
20%
20%

Income Tax Slab Rates for FY 2022-23 (AY 2023-24): a. New tax regime until March 31, 2023


Income Slabs
Individuals (for all age categories)
Up to Rs 2,50,000
Nil
Rs 2,50,001 - Rs 5,00,000
5%
Rs 5,00,001 - Rs 7,50,000
10%
Rs 7,50,001 - Rs 10,00,000
15%
Rs 10,00,001 - Rs 12,50,000
20%
Rs 12,50,001 - Rs 15,00,000
25%
Rs 15,00,001 and above
30%


A tax rebate of up to Rs 12,500 is available if total income does not exceed Rs 5,00,000 (not applicable to NRIs)..

 

Refer to the above graphic for the rates applicable for FY 2023-24 (AY 2024-25) for the forthcoming tax filing season.

b. The old tax regime

Income tax slabs for individuals under the age of 60 and HUF


Income Slabs
Individuals of Age < 60 Years and NRIs
Up to Rs 2,50,000
NIL
Rs 2,50,001 - Rs 5,00,000
5%
Rs 5,00,001 to Rs 10,00,000
20%
Rs 10,00,001 and above
30%

NOTE:


Individuals, HUFs under the age of 60, and NRIs may claim an income tax exemption of up to Rs 2,50,000.

Surcharges and cesses will apply.


Income tax slab for individuals aged 60 to 80 years. 


Income Slabs
Individuals of Age 60 Years to 80 Years
Up to Rs 3,00,000
NIL
Rs 3,00,001 - Rs 5,00,000
5%
Rs 5,00,001 to Rs 10,00,000
20%
Rs 10,00,001 and above
30%

NOTE:


Senior adults aged 60 and above are eligible for an income tax exemption of up to Rs.

3 lakh.

Surcharges and cess will be applicable.


Income tax slab for those above the age of 80


Income Slabs
Individuals of Age above 80 Years
Up to Rs 5,00,000
NIL
Rs 5,00,001 to Rs 10,00,000
20%
Rs 10,00,001 and above
30%

NOTE:


The income tax exemption limit is Rs 5 lakh for very old citizens over the age of 80.

Surcharges and cess will be applicable


Revised Income Tax Slab Rate AY 2024-25 (FY 2023-24)—For New Regime


Income Slabs
Income Tax Rates FY 2023-24 (AY 2024-25)
Up to Rs 3,00,000
NIL
Rs 3,00,000 to Rs 6,00,000
5% on income which exceeds Rs 3,00,000 
Rs 6,00,000 to Rs 900,000
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. 150,000 + 30% on income more than Rs 15,00,000


Frequently Asked Questions
  • These modifications included new income tax slabs for Fiscal Year 2024-25 and an increase in the basic deduction. The standard deduction increased from Rs 50,000 to Rs 75,000. Furthermore, the tax slab limit for the 5% tax rate was increased from Rs 5 lakh to Rs 7 lakh.
  • Tax Slab for FY 2023-24 Tax Rate Tax Slab for FY 2024-25 Upto ₹ 3 lakh Nil ₹ 3 lakh - ₹ 6 lakh 5% ₹ 3 lakh - ₹ 7 lakh ₹ 6 lakh - ₹ 9 lakh 10% ₹ 7 lakh - ₹ 10 lakh ₹ 9 lakh - ₹ 12 lakh 15% ₹ 10 lakh - ₹ 12 lakh
  • Existing tax slabs under new tax regime are: 0 - Rs 3,00,000 - 0%, Rs 3,00,001-Rs 6,00,000-5%, Rs 6,00,001-Rs 9,00,00-10%, Rs 9,00,001- Rs 12,00,000-15%, Rs 12,00,001-Rs 15,00,000- 20% and Rs 15,00,001 and above - 30%
  • One notable highlight of the Union Budget 2024-25 is the 50% rise in the standard deduction, now up to ₹75,000. This is a beneficial move for salaried taxpayers, particularly those choosing the new tax regime, as it lowers their taxable income and increases disposable income.
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