For the financial year 2023-24 (assessment year 2024-25), an individual has two choices. They can opt to pay taxes as per the old tax regime or they can go for a new tax regime under section 115BAC.
In Budget 2023, income tax slabs as per the old tax regime remain the same. Which means the government of India has not done any changes.
However, tax slabs and income tax rates are changed under the new tax regime.
Income tax slab rates as per new tax regime for financial year 2023-24 (AY 2024-25)
In the new tax regime, tax rates are the same irrespective of the age of the individual. Which means, following income tax slabs and rates are applicable to an individual who is up to 60 years of age, to a senior citizen and a super senior citizen.
You will find age wise categorization in the old tax regime.
Here are the new income tax slabs as per recent changes by the union budget 2023.
| Income tax slab (in INR) | Income Tax Rates for the financial year 2023-24 (AY 2024-25) Applicable to an individual as per the new tax regime |
| Up to 3,00,000 | Nil |
| 3,00,001 to 6,00,000 | 5% |
| 6,00,001 to 9,00,000 | 10% |
| 9,00,001 to 12,00,000 | 15% |
| 12,00,0001 to 15,00,000 | 20% |
| Above 15,00,000 | 30% |
Individuals with net taxable income of up to 7,00,000 are eligible for tax rebate under section 87A.
Income tax slab rate for old regime – Financial year 2023-24 (AY 2024-25)
Old tax regime has following 3 categories;
- Individual below 60 years of age;
- Individuals ages between 60 years and 80 years; and
- Individuals above 80 years
Here are the income tax slab rates for individuals who are below the age of 60 years.
| Income tax slab (in INR) | Income tax rate |
| Up to 2,50,000 | Nil |
| 2,50,001 to 5,00,000 | 5% |
| 5,00,001 to 10,00,000 | 20% |
| Above 10,00,000 | 30% |
For an individual who is below the age of 60 years, the basic exemption limit is 2,50,000 for the financial year 2023-24 (AY 2024-25). If he/she has selected to pay taxes as per the new tax regime, then the basic exemption limit will be 3,00,000, as up to 3 lakhs tax rate is nil in the new tax regime.
Here are the income tax slab rates for individuals who are aged between 60 years and 80 years.
| Income tax slab (in INR) | Income tax rate |
| Up to 3,00,000 | Nil |
| 3,00,001 to 5,00,000 | 5% |
| 5,00,001 to 10,00,000 | 20% |
| Above 10,00,000 | 30% |
In this case the basic exemption under old tax regime and new tax regime will be the same as in both the cases up to 3 lakhs tax rate is nil.
Here are the income tax slab rates for individuals who are above 80 years of age.
| Income tax slab (in INR) | Income tax rate |
| Up to 5,00,000 | Nil |
| 5,00,001 to 10,00,000 | 20% |
| Above 10,00,000 | 30% |
Please note, the new tax regime will become a default tax system from the financial year 2023-24 (AY 2024-25). However, an individual taxpayer can choose between the old and new tax regime.
Table showing income tax slab rates for old regime – FY 2023-24 (AY 2024-25)
| Income slabs in INR | Individuals below 60 years of age | Individuals between 60 years and 80 years of age | Individuals above 80 years of age |
| Up to 2,50,000 | Nil | Nil | Nil |
| 2,50,001 to 3,00,000 | 5% | Nil | Nil |
| 3,00,001 to 5,00,000 | 5% | 5% | Nil |
| 5,00,001 to 10,00,000 | 20% | 20% | 20% |
| Above 10,00,000 | 30% | 30% | 30% |
Health and education cess for the financial year 2023-24 (AY 2024-25)
For the financial year 2023-24 (AY 2024-25), health and education cess is 4%.
Health and education cess is calculated on the income tax liability calculated for the financial year 2023-24 (AY 2024-25).
It’s calculated on tax liability irrespective of your income range and type of income.
After adding health and education cess with the tax liability, you get the actual income tax liability to be paid for the financial year 2023-24 (AY 2024-25).
Surcharge for the financial year 2023-24 (AY 2024-25)
Surcharge is calculated on the total amount of income tax liability and health and education cess.
Here are the surcharge rates applicable to the financial year 2023-24 (AY 2024-25).
| Income | Surcharge rate |
| Above 50 lakhs | 10% |
| Above 1 crore | 15% |
| Above 2 Crore | 25% |
| Above 5 crore | 37% |
Marginal relief for surcharge is available.
Even marginal relief is also available for tax rebate under section 87A.
Surcharge of 25% and 37% is not levied from income chargeable to tax under section 111A, 112A and 115AD.
Also read: Key changes to income tax act for the financial year 2023-24 (AY 2024-25)
Comparison of income tax slab rates under the new tax regime for FY 2022-23 (AY 2023-24) and FY 2023-24 (AY 2024-25)
| Income slabs | Income tax rates under new tax regime for FY 2022-23 (AY 2023-24) | Income tax rates under new tax regime for FY 2023-24 (AY 2024-25) |
| Up to 2,50,000 | Nil | Nil |
| 2,50,001 to 3,00,000 | 5% | Nil |
| 3,00,001 to 5,00,000 | 5% | 5% |
| 5,00,001 to 6,00,000 | 10% | 5% |
| 6,00,001 to 7,50,000 | 10% | 10% |
| 7,50,001 to 9,00,000 | 15% | 10% |
| 9,00,001 to 10,00,000 | 15% | 15% |
| 10,00,001 to 12,00,000 | 20% | 15% |
| 12,00,001 to 12,50,000 | 20% | 20% |
| 12,50,001 to 15,00,000 | 25% | 20% |
| Above 15,00,000 | 30% | 30% |
Frequently Asked Questions (FAQs)
When income tax return filing is compulsory?
As per current tax laws, filing of income tax return is a must if your gross total income for the financial year 2023-24 (AY 2024-25) has crossed the basic exemption limit.
If you have selected to pay taxes as per the old tax regime, then your basic exemption limit is Rs 2,50,000 assuming you are below 60 years of age. In case you have opted to pay taxes under the new tax regime under section 115BAC, then the basic exemption limit will become Rs 3,00,000.
In case your income is below the above limits based on the tax regime you have selected, then you are not liable to file your income tax return.
You can file your income tax return voluntarily irrespective of your income.
Is there any standard deduction under new tax regime for FY 2023-24 (AY 2024-25)
Yes, a standard deduction of 50,000 INR can be claimed by salaried individuals for the year 2023-24 (AY 2024-25). This standard deduction can be claimed from financial year 2023-24 under both the tax regime.
