Do you want to know the revised latest Income Tax Slab Rates for Financial Year 2023-24 in Budget 2023?
Finance Minister has revised the income tax slab rates for individuals in the recent budget 2023.
In this article let’s see
- What are Income Tax Slab Rates?
- Gross Income VS Taxable Income
- Comparison of Old Tax Regime and New Tax Regime
Now let’s first see the difference between Gross Income and Total Income or Taxable Income.
Gross Income VS Taxable Income
Gross Total Income is the revenue that we get from multiple sources like
- Income from salary
- Income from House Property
- Income from profit or gains of business
- Income from Capital Gains.
It includes all the sources of income including non-taxable income.
There is a common misunderstanding between Gross Income and Total Income. And most of the time the income tax is calculated based on the Gross Total Income which is completely wrong.
So, now let’s see what is Total or Taxable Income.
The term total or taxable income is equal to Gross Total Income excluding permissible deductions under Sec 80 C to 80 U.
What are the types of Income Tax Slab Rates?
There will be two types of Tax Slab Rates
1) For those who wish to claim IT Deductions and Exemptions.
2) For those who do not wish to claim IT Deductions and Exemptions.
In the previous tax regime, there were six income tax slab rates. Whereas in the new tax regime, it has been reduced to five income tax slab rates.
A point to be noted is that changes in the income tax slab rates are only applicable to the new tax regime. Old Tax Regime remains the same.
If you see over here the default tax regime is the new tax regime. If you wish to continue with the old tax regime, then you have to opt for it.
One of the noticeable changes from the old tax regime to the new tax regime is that Non – Taxable Income is raised from 5-7 lakhs under 87A.
Here is a table to help you understand the new tax regime better.
What are the Revised Income Slab Rates FY 2023-24?
|Inclusions of Deductions and Exemptions|
|Income Slab||Individuals (Below 60 yrs)||Senior Citizens (Above 60 and below 80 yrs)||Super Senior Citizens (80 & above yrs)|
|Up to Rs.2,50,000||Nil||Nil||Nil|
|Rs.2,50,001 to Rs,3,00,00||5%||Nil||Nil|
|Rs.3,00,01 to Rs.5,00,001||5%||5%||Nil|
|Rs.5,00,001 to Rs.10,00,00||20%||20%||20%|
|Rs.10,00,001 and above||30%||30%||30%|
Old Tax Regime.
|Without Deductions and Exemptions|
|Income Slab||Income Tax Rate|
|Up to Rs. 3,00,000||Nil|
|Rs.3,00,000 to Rs.6,00,000||5% (with Tax Rebate Under 87A)|
|Rs. 6,00,001 to Rs.9,00,000||10% (with Tax Rebate Under 87A up to Rs.7 Lakhs)|
|Rs.9,00,001 to Rs. 12,00,000||15%|
|Rs. 12,00,001 to Rs.15,00,000||20%|
|Rs.15,00,001 and above||30%|