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New Income Tax Slabs FY 2023-24 (AY 2024-25) / FY 2022-23 (AY 2023-24) – New Tax Rates for FY 2022-23/ FY 2021-22

Finance Budget 23-24 New Income Tax Regime

The most of the common people thought, The budget tax rate effect for FY22-23 , but it not correct it Effect only FY 2023-24 (AY 2024-25)

New IT rate for the income range wise:

Income range Income tax rate
Up to Rs. 3,00,000 Nil
Rs. 300,000 to Rs. 6,00,000 5% on income which exceeds Rs 3,00,000
Rs. 6,00,000 to Rs. 900,000 Rs 15,000 + 10% on income more than Rs 6,00,000
Rs. 9,00,000 to Rs. 12,00,000 Rs 45,000 + 15% on income more than Rs 9,00,000
Rs. 12,00,000 to Rs. 1500,000 Rs 90,000 + 20% on income more than Rs 12,00,000
Above Rs. 15,00,000 Rs 150,000 + 30% on income more than Rs 15,00,000

Income tax is levied on the income earned by all the individuals, HUF, partnership firms , LLPs and Corporates as per the Income tax Act of India. In the case of individuals, tax is levied as per the slab system if their income is above the minimum threshold limit (known as basic exemption limit ).

Income tax slab rate FY 2021-22 (AY 2022-23) – Applicable for New Tax regime

Income Tax Slab New Regime Income Tax Slab Rates FY 2021-22
(Applicable for All Individuals & HUF)
Rs 0.0 – Rs 2.5 lakh NIL
Rs 2.5 lakh – Rs 3.00 lakh 5% (tax rebate u/s 87A is available)
Rs 3.00 lakh – Rs 5.00 lakh
Rs 5.00 lakh- Rs 7.5 lakh 10%
Rs 7.5 lakh – Rs 10.00 lakh 15%
Rs 10.00 lakhs – Rs 12.50 lakh 20%
Rs 12.5 lakhs – Rs 15.00 lakh 25%
> Rs 15 lakh 30%

NOTE:

  • Please note that the tax rates in the New tax regime is the same for all categories of Individuals, i.e Individuals & HUF upto 60 years of age, Senior citizens above 60 years upto 80 years , and Super senior citizens above 80 years. Hence no increased basic exemption limit benefit will be available to senior and super senior citizens in the New Tax regime.
  • Individuals with Net taxable income less than or equal to Rs 5 lakh will be eligible for tax rebate u/s 87A i.e tax liability will be nil of such individual in both – New and old/existing tax regimes.
  • Basic exemption limit for NRIs is of Rs 2.5 Lakh irrespective of age.
  • Additional Health and Education cess at the rate of 4 % will be added to the income tax liability in all cases. (increased from 3% since FY 18-19)
  • Surcharge applicable as per tax rates below in all categories mentioned above:
    1. 10% of Income tax if total income > Rs.50 lakh
    2. 15% of Income tax if total income > Rs.1 crore
    3. 25% of Income tax if total income > Rs.2 crore
    4. 37% of Income tax if total income > Rs.5 crore.

New Tax regime on interest earned from deposits

Income tax deduction on interest on bank deposits

What tax deduction specified in the FY 22-23 which you continue the same for FY 23-24, In additional to that the tax slab rate would be high from 2.5 to 3 lac and rebate u/s 87A from 5 to 7 lac .

Section 80TTB – allows tax benefits on interest earned from deposits with banks, post office copt bank. It is allowed for a maximum interest income of up to ₹ 50,000 earned by the Senior Citizen. Both the interest on saving deposits and fixed deposits are eligible for deduction under this provision.

Tax Slabs for AY 2022-23:-

Senior and Super Senior Citizens can opt for the Existing Tax Regime or the New Tax Regime with lower rate of taxation (u/s 115 BAC of the Income Tax Act)

The taxpayer opting for concessional rates in the New Tax Regime will not be allowed certain exemptions and deductions (like 80C, 80D,80TTB, HRA) available in the Existing Tax Regime.

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9 Comments

  1. CHALLA GURUMURTHY says:

    I am a senior citizen and having interest income on Saving bank accounts & FD is around Rs.2,00,000 for FY 2022-23. The total taxible income is more than 20 lacs. Am I eligible to calaim deduction of Rs. 50,000 under Sec 80TTB. Kindly clarify. Thank you.

  2. Ashok Bajaj says:

    An individual /HUF is assessed in New Regime for the A.Y .21-22 but due to the negligence of the bank Form 26A was not supplied on correct figures and mixed the TDS of Individual & HUF and corrected after two months i.e.. after due date of 31-07-22 . Obviously return could not be filed before 31-07-22 and it was assessed in old regimine of Higher Tax since deductions exemptions were not avai labe due non deposit before 31-03-22. Whether any remady is available for rectificaion under the Income Tax Act being no fault of the tax payber.

  3. Pavan Kumar P says:

    I am a senior Citizen (70 yrs)

    1)- Under the new Tax Regime, will I get the Interest from PPF exempt from taxable Income ?
    2)- I live on the receipt of Rents from a few Residential Apartments. Will i get the 30% standard deduction the Rental income in the New Tax Regime ?

  4. JOTHI75 says:

    Hi Raj,
    About your clarification, what tax deduction specified in the FY 22-23 which you continue the same for FY 23-24, In additional to that the tax slab rate would be high from 2.5 to 3 lac and rebate u/s 87A from 5 to 7 lac .
    Section 80TTB – allows tax benefits on interest earned from deposits with banks, post office copt bank. It is allowed for a maximum interest income of up to ₹ 50,000 earned by the Senior Citizen. Both the interest on saving deposits and fixed deposits are eligible for deduction under this provision.

    Tax Slabs for AY 2022-23:-
    Senior and Super Senior Citizens can opt for the Existing Tax Regime or the New Tax Regime with lower rate of taxation (u/s 115 BAC of the Income Tax Act)
    The taxpayer opting for concessional rates in the New Tax Regime will not be allowed certain exemptions and deductions (like 80C, 80D,80TTB, HRA) available in the Existing Tax Regime.
    Thanks
    A.Jothi

  5. Raj Vir Singh says:

    Would you please clarify the following points:-
    1. Whether exemption of income from interest upto ₹50000 Available earlier for senior citizens would continue further in new tax regime?
    2 Exemption of ₹50000 in NPS under 80ccd(1b) would be available or not in new tax regime? Thanks

    1. JOTHI75 says:

      Hi Raj,
      About your clarification, what tax deduction specified in the FY 22-23 which you continue the same for FY 23-24, In additional to that the tax slab rate would be high from 2.5 to 3 lac and rebate u/s 87A from 5 to 7 lac .
      Section 80TTB – allows tax benefits on interest earned from deposits with banks, post office copt bank. It is allowed for a maximum interest income of up to ₹ 50,000 earned by the Senior Citizen. Both the interest on saving deposits and fixed deposits are eligible for deduction under this provision.

      Tax Slabs for AY 2022-23:-
      Senior and Super Senior Citizens can opt for the Existing Tax Regime or the New Tax Regime with lower rate of taxation (u/s 115 BAC of the Income Tax Act)
      The taxpayer opting for concessional rates in the New Tax Regime will not be allowed certain exemptions and deductions (like 80C, 80D,80TTB, HRA) available in the Existing Tax Regime.
      Thanks
      A.Jothi

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