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Tax-Slab-Rates-Old-vs-New-Tax-Regime

 

Tax Slab Rates Old vs New Tax Regime

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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

 

 

 

 

Some of the Deductions/exemptions to be forgone while opting for new tax regime (From A.Y. 2024-25)

 

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




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