Understanding the New Income Tax Slabs for 2023-24 in India

As we transition into the next financial year, it's important to understand the latest changes in the Indian tax regime. Starting from the Financial Year (F.Y.) 2023-24, the income tax slabs have been revised. This is a significant update that affects various income groups. In this article, we will explore the new tax slabs and provide clarity on how they will impact taxpayers.

New Income Tax Slabs for 2023-24

The new tax slabs for 2023-24, effective from F.Y. 2023-24, are as follows:

For All Income Groups:

0 to 3 lakh: Tax rate 0 3 to 6 lakh: Tax rate 5 6 to 9 lakh: Tax rate 10 9 to 12 lakh: Tax rate 15 12 to 15 lakh: Tax rate 20 15 lakh and above: Tax rate 30

It's important to note that these changes will take effect from the new financial year and will not be applied to the current F.Y. 2022-23.

Late Transition Period

For the last tax year, F.Y. 2020-21, which ends on 31/03/2020, the tax slabs were as follows:

For Individuals Below 60 Years of Age:

Upto 250000: No tax, no need to file ITR. 250000 to 500000: 5% tax on income exceeding 250,000, with 4% cess. 500000 to 10 Lakhs: 12,500 tax, 20% tax on income exceeding 500,000, with 4% cess. 10 Lakhs to 50 Lakhs: 112,500 tax, 30% tax on income exceeding 10 Lakhs, with 4% cess. Above 50 Lakhs to 1 Crore: 112,500 tax plus 10% surcharge, then 4% cess.

For Senior Citizens (60-80 years old):

Special exemptions apply with a basic exemption limit of 3 Lakhs. Upto 500,000: No tax, ITR filing compulsory. 500,000 to 10 Lakhs: 10,000 tax, 20% tax on income exceeding 500,000, with 4% cess. 10 Lakhs to 50 Lakhs: 110,000 tax, 30% tax on income exceeding 10 Lakhs, with 4% cess. Above 50 Lakhs: Tax slabs work out based on the above examples.

For Super Senior Citizens (Above 80 years old):

No income tax up to 5 Lakhs annual income. No compulsion to file ITR if annual income is 5 Lakhs before deductions. Rest of the slabs can be calculated based on the above examples.

Surcharge and Additional Rates for Higher Incomes

For incomes above 1 Crore, different surcharges apply:

15% surcharge on income up to 2 Crores. 25% surcharge on income between 2 Crores to 5 Crores. 37% surcharge on income above 5 Crores.

Note: These rates are subject to change and should be verified periodically for accuracy.

Conclusion and Resources

Clear Tax is one of the most trusted websites in India for overall tax solutions. For detailed information on tax slabs for the Financial Year 2019-20 (AY 2020-21), visit the following link:

Income Tax Slabs 2020-21 - Revised Income Tax Slabs Tax Rates in India FY 2020-21

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