This story is from July 18, 2024
ITR Filing FY 2023-24 Tax Slabs under New and Old Tax regime: As the deadline for filing the income tax return for FY 2023-24 approaches, it is important to understand what the income tax slabs for FY 2023-24 are under both the new and the old income tax regime so that you can make an informed decision on the best suited regime for you. What are the income tax slabs under the new tax regime and old tax regime for FY 2023-24? How are the basic exemption limits different between the old and new income tax regimes? We take a look at the income tax slabs for FY 2023-24 (AY 2024-25) for the purpose of ITR filing: (AI image)
Income Tax Slabs FY 2023-24 under old tax regime: For the fiscal year spanning from 2023 to 2024, the income tax slabs and the corresponding income tax rates are outlined in the table. These tax slabs and rates are applicable to individual taxpayers including residents under the age of 60, non-residents (NR), and non-ordinary residents (NOR).
Income Tax Rebate Under Old Regime FY 2023-24: Resident individual taxpayers with a total income not exceeding Rs 500,000 are eligible for a tax rebate of Rs 12,500 or the actual tax payable, whichever is lower. (AI image)
Income Tax Slabs FY 2023-24 basic exemption for senior citizens: Unlike the new regime, the old tax regime has a higher exemption limit for senior citizens. For individuals classified as senior citizens, aged 60 years and above, the basic exemption threshold stands at Rs 3 lakh. For super senior citizens, aged 80 years and above, the basic exemption limit is set at Rs 5 lakh. (AI image)
Income Tax Slabs FY 2023-24 under new tax regime: Effective FY 2023-24, the new income tax regime, also referred to as the Concessional Tax Regime, saw revised income tax rates and slabs. The table outlines these changes.
Income Tax Slabs FY 2023-24 rebate under new tax regime: Under the new tax regime, taxpayers with a net taxable income of up to Rs 7,00,000 are eligible for a rebate of up to Rs 25,000. Furthermore, individuals whose net taxable income surpasses Rs 7,00,000 can still avail marginal relief, provided that the additional income tax liability exceeds the incremental income above Rs 7,00,000. (AI image)
Income Tax Slabs FY 2023-24 Surcharge Rates New vs Old regime: Surcharges on income tax are applicable to individuals whose total income exceeds Rs 5,000,000. The table specifies the surcharge rates for both the old and new tax regimes, as per the changes introduced in the new tax regime for FY 2023-24.
Income Tax Slabs FY 2023-24: All individuals are subject to a health and education cess of 4%, which is levied on the sum of the income tax and surcharge (if applicable), calculated based on the provided rates. (AI image)
ITR filing FY 2023-24 new versus old regime: Effective FY 2023-24, the new tax regime is the default tax regime. You will have to specifically opt for the old tax regime while filing your returns, if the tax outgo under that is lesser for you. In case you file your tax return after the due date, you will automatically be switched back to the new regime. (Image source: Freepik)
ITR Filing New versus Old Regime: The primary distinction between the old and new income tax regimes lies in the availability of exemptions and deductions. Under the old regime, taxpayers can claim significant deductions, including those under Section 80C, Section 80D, Section 80TTA etc. In contrast, the new regime offers lower tax rates based on the income slab, but the only notable exemption accessible is the standard deduction.