Tax Slab Rates Old vs New Tax Regime
Tax Slab Rates-
Under the New Regime, new tax slabs were introduced with existing rates which are slashed on income up to Rs. 15 Lakh. The tax slab rates as per the ‘New Income Tax Regime’ and ‘Old Income Tax Regime’ are as follows-
|
Income Range
|
Rates as per Old Regime
|
Rates as per New Regime (up to AY 2023-24)
|
|
Up to Rs. 2,50,000
|
Nil
|
Nil
|
|
Rs. 2,50,001 – 5,00,000
|
5%
|
5%
|
|
Rs. 5,00,001 – 7,50,000
|
20%
|
10%
|
|
Rs. 7,50,001 – 10,00,000
|
20%
|
15%
|
|
Rs. 10,00,001 – 12,50,000
|
30%
|
20%
|
|
Rs. 12,50,001 – 15,00,000
|
30%
|
25%
|
|
Above Rs. 15,00,000
|
30%
|
30%
|
A resident individual with taxable income up to Rs. 5,00,000 will be eligible for tax rebate under section 87A of Rs 12,500/-(Maximum).
Tax Slab Rates for the Financial Year 2023-24 (Assessment Year 2024-25) -
|
Income Range
|
Rates as per New Tax Regime (From AY 2024-25)
|
|
Up to Rs. 3,00,000
|
Nil
|
|
Rs. 3,00,001 – 6,00,000
|
5%
|
|
Rs. 6,00,001 – 9,00,000
|
10%
|
|
Rs. 9,00,001 – 12,00,000
|
15%
|
|
Rs. 12,00,001 – 15,00,000
|
20%
|
|
Above Rs. 15,00,000
|
30%
|
A resident individual with taxable income up to Rs. 7,00,000 will be eligible for tax rebate under section 87A of Rs 25,000/-(Maximum).
Basic Exemption Limit-
Under the new tax regime, the basic tax exemption limit will remain the same for all assesses including senior citizens. Therefore, in case you opt for the new regime, there will be no higher tax exemption for the senior and super senior citizens.
|
Age
|
Old Regime Exemption
|
New Regime Exemption Limit
(up to AY 2023-24)
|
New Regime
Exemption Limit
(From AY 2024-25)
|
|
Person below the age of 60 years
|
Rs. 2,50,000
|
Rs. 2,50,000
|
Rs. 3,00,000
|
|
Person between the age of 60 to 80 years
|
Rs. 3,00,000
|
Rs. 2,50,000
|
Rs. 3,00,000
|
|
Persons above the age of 80 years
|
Rs. 5,00,000
|
Rs. 2,50,000
|
Rs. 3,00,000
|
|
|
|
|
|
Example -
Suppose Mr. X aged about 50 year, having total income of Rs. 20,00,000 which includes Rs. 16,00,000 from Salary, Rs. 2,00,000 profit from commodity, Rs. 2,00,000 from Interest on fixed deposits. He has made an investment of Rs. 1,50,000 under section 80C and Rs 20,000 under section 80D for medical insurance.
Solution -
|
Particulars
|
Tax under Old Regime
|
Tax under New Regime
(up to AY 2023-24)
|
Tax under New Regime
(AY 2024-25 onwards)
|
|
|
Amount (Rs.)
|
Amount (Rs.)
|
Amount (Rs.)
|
|
Income from Salary
|
16,00,000
|
16,00,000
|
16,00,000
|
|
Less: Standard Deduction
|
50,000
|
NA
|
50,000
|
|
Profit from Business & Profession
|
2,00,000
|
2,00,000
|
2,00,000
|
|
Income from Other Sources
|
2,00,000
|
2,00,000
|
2,00,000
|
|
Gross Total Income
|
19,50,000
|
20,00,000
|
19,50,000
|
|
Less: Deduction under chapter VI-A
|
|
|
|
|
Section 80C
|
1,50,000
|
NA
|
NA
|
|
Section 80D
|
20,000
|
NA
|
NA
|
|
Net Taxable Income
|
17,80,000
|
20,00,000
|
19,50,000
|
|
Total Tax Liability
|
3,46,500
|
3,37,500
|
2,85,000
|
|
Less: Rebate u/s 87A
|
NA
|
NA
|
NA
|
|
Health and education Cess 4%
|
13,860
|
13,500
|
11,400
|
|
Net Tax Payable
|
3,60,360
|
3,51,000
|
2,96,400
|