November 30, 2025
income tax slab 2023 24
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income tax slab 2023 24

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Understanding the income tax slab for the financial year 2023–24 is crucial for every taxpayer in India. Whether you’re a salaried employee, a business owner, or a senior citizen, the right knowledge about tax slabs helps in better planning of finances and ensures compliance with tax regulations. The Indian government provides different income tax regimes, each with its own set of slab rates and deductions. For FY 2023–24, taxpayers can choose between the old tax regime and the new tax regime, depending on their eligibility and preference. Knowing the differences between these tax slabs can significantly affect your tax liability.

What Is an Income Tax Slab?

Income tax slabs refer to the ranges of income that are taxed at different rates. The slab system ensures progressive taxation, meaning higher-income individuals pay more tax as a percentage of their income compared to those with lower earnings. The slabs are revised periodically in accordance with the economic conditions and fiscal policies of the country.

Two Tax Regimes in FY 2023–24

For the financial year 2023–24, there are two income tax regimes available:

  • Old Tax Regime: Offers various exemptions and deductions such as HRA, LTA, and investments under section 80C.
  • New Tax Regime: Features lower tax rates but removes most deductions and exemptions.

Taxpayers have the flexibility to choose between these regimes while filing their income tax returns. It is advisable to calculate your tax under both and opt for the one that results in lower liability.

Income Tax Slab for FY 2023–24: New Tax Regime

The new tax regime has become the default tax structure for individual taxpayers unless they opt out. Below are the slab rates applicable for individuals under the new regime:

New Tax Regime Slab Rates

  • Income 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%
  • ₹12,00,001 to ₹15,00,000 – 20%
  • Above ₹15,00,000 – 30%

In the new regime, a standard deduction of ₹50,000 has been reintroduced for salaried individuals and pensioners, effective from FY 2023–24. Additionally, rebates under section 87A apply for income up to ₹7,00,000, resulting in zero tax liability for those earning below that threshold.

Key Features of the New Tax Regime

  • Lower slab rates for most income levels
  • Standard deduction of ₹50,000 applicable
  • No tax for income up to ₹7,00,000 after rebate
  • Fewer deductions and exemptions allowed
  • Optional regime, but now treated as default

Income Tax Slab for FY 2023–24: Old Tax Regime

The old tax regime continues to exist and can be opted by taxpayers who want to claim deductions like HRA, 80C, 80D, interest on housing loans, and others. It is particularly beneficial for those with significant investments or home loans.

Old Tax Regime Slab Rates for Individuals Below 60 Years

  • Income 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%

Old Tax Regime for Senior Citizens (60 to 80 years)

  • Income 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%

Old Tax Regime for Super Senior Citizens (Above 80 years)

  • Income up to ₹5,00,000 – Nil
  • ₹5,00,001 to ₹10,00,000 – 20%
  • Above ₹10,00,000 – 30%

Key Deductions Under Old Regime

Some of the popular deductions that can be claimed under the old tax regime include:

  • Section 80C – Investments up to ₹1,50,000 (PPF, ELSS, LIC, etc.)
  • Section 80D – Medical insurance premiums
  • Section 24 – Interest on home loan (up to ₹2,00,000)
  • HRA – House Rent Allowance
  • LTA – Leave Travel Allowance

Choosing Between Old and New Tax Regime

One of the biggest questions for taxpayers in FY 2023–24 is whether to stick with the old regime or shift to the new one. Each has its pros and cons, and the choice should be based on an individual’s income structure and eligible deductions.

New Tax Regime Is Beneficial If:

  • You have minimal investments eligible for tax deductions
  • You prefer simplicity in filing returns without claiming exemptions
  • Your annual income is between ₹7,00,000 and ₹15,00,000 with no major deductions

Old Tax Regime Is Beneficial If:

  • You claim substantial deductions under 80C, 80D, HRA, or home loan
  • You are a senior citizen with tax-friendly income slabs
  • You want to optimize your tax liability through investments

Rebate Under Section 87A

Section 87A provides tax relief for individuals with income below a certain threshold. For FY 2023–24:

  • Under thenew regime, individuals earning up to ₹7,00,000 are eligible for a rebate of ₹25,000, resulting in zero tax.
  • Under theold regime, the rebate limit is applicable up to ₹5,00,000 total income, allowing a tax rebate of ₹12,500.

Surcharge and Cess

In addition to the basic tax slabs, taxpayers may be liable to pay surcharge and health & education cess:

  • Surcharge: Applicable on income above ₹50 lakh, ranging from 10% to 25% depending on income level.
  • Cess: 4% health and education cess is levied on the total tax payable including surcharge.

Understanding the income tax slab for 2023–24 helps individuals make informed financial decisions. With the option to choose between two tax regimes, taxpayers must carefully analyze their income, exemptions, and deductions before deciding. The new tax regime offers simplicity and lower rates but fewer deductions, while the old regime allows for extensive tax planning. Whichever path you choose, timely and accurate filing of your returns remains essential for staying compliant and avoiding penalties. Always consider consulting a tax advisor if you’re unsure which tax regime is better for your financial situation.