Latest Income Tax Slab and Rates - FY 2023-24 | AY 2024-25

No changes have been announced by the finance minister Nirmala Sitharaman in the income tax slab rates in the interim Budget 2024. The income tax slabs and income tax rates will remain unchanged in the upcoming financial year 2024-25, starting from April 1, 2024. Hence, an individual will need to analyse between the old and new tax regimes to lower their income tax liability.

It is important to note that changes were announced in last year's budget (Budget 2023) which apply to the current financial year 2023-24 (April 1, 2023-March 31, 2024).

For the financial year 2023-24, the changes announced in... Show more >

Table of Content

Income tax slabs for FY 2024-25 (AY 2025-26), FY 2023-24 (AY 2024-25) under the new tax regime

Income tax slab rates for FY 2024-25 (AY 2025-26), FY 2023-24 (AY2024-25), FY 2022-23 (AY 2023-24), FY 2021-22 (AY 2022-23) under old tax regime

How to calculate income tax payable under new tax regime

How to know which income tax slab you fall in

Surcharge on income tax

Income tax slabs for FY 2020-21 (AY 2021-22), FY 2021-22 (AY 2022-23) FY 2022-23 (AY 2023-24) under new tax regime

Income tax slabs for FY 2024-25 (AY 2025-26), FY 2023-24 (AY 2024-25) under the new tax regime

The income tax slabs in new tax regime will remain unchanged for FY 2024-25 (AY 2025-26). No changes have been announced in the interim budget. The last year's budget (Budget 2023) announced changes in the income tax slabs in the new tax regime. The changes were made to make the new tax regime more attractive for individual taxpayers. Currently, new tax regime has basic exemption limit of Rs 3 lakh. This was hiked in last year's budget from Rs 2.5 lakh by Rs 50,000.

 
Here are the income tax slabs under new tax regime.

Income tax slabs under new tax regime for FY 2023-24, FY 2024-25

Income tax slabs (Rs)

Income tax rate (%)

From 0 to 3,00,000 - 0

From 3,00,001 to 6,00,000 - 5

From 6,00,001 to 9,00,000 - 10

From 9,00,001 to 12,00,000 - 15

From 12,00,001 to 15,00,000 - 20

From 15,00,001 and above - 30

Changes announced in the new tax regime in Budget 2023

Given below are the changes that were announced in the new tax regime in Budget 2023 for FY 2023-24:

New income tax regime is the default tax regime. Thus, unless an individual specifically opts for the old tax regime, their incomes will be taxed at the new tax regime's slabs and rates

Rebate under Section 87A increased to taxable income of Rs 7 lakh (tax rebate of 25,000) from 5 lakh (tax rebate of Rs 12,500). This effectively means that any individual opting for the new tax regime with taxable income of up to Rs 7 lakh will not pay any taxes. Earlier, this tax rebate was available till taxable income of Rs 5 lakh

Basic exemption limit hiked to Rs 3 lakh from Rs 2.5 lakh in the new tax regime

The number of income tax slabs under the new tax regime reduced to five from six

Standard deduction of Rs 50,000 introduced under the new tax regime for salaried and pensioners

Family pensioners can also claim standard deduction of Rs 15,000 under the new tax regime

Highest surcharge rate of 37% reduced to 25% under the new tax regime

 Income tax slab rates for FY 2024-25 (AY 2025-26), FY 2023-24 (AY2024-25), FY 2022-23 (AY 2023-24), FY 2021-22 (AY 2022-23) under old tax regime

No changes are announced in the old tax regime in interim budget. Thus, anyone opting for the old tax regime for FY 2024-25 (April 1, 2024-March 31, 2025) will continue to calculate the income tax payable under the same tax rates as in FY 2023-24 (April 1, 2023 - March 31, 2024).

 
Given below are the income tax rates for FY 2024-25 (AY 2025-26), FY 2023-24 (AY 2024-25), FY 2022-23 (AY 2023-24) and FY 2021-22 (AY 2022-23) under the old tax regime. The basic exemption limit depends on the age of an individual and status of an individual under the old tax regime.

For an individual below 60 years of age, the basic exemption limit is of Rs 2.5 lakh. For senior citizens (aged 60 years and above but below 80 years) the basic income exemption limit is of Rs 3 lakh. For super senior citizens (aged 80 years and above), the basic income exemption limit is Rs 5 lakh. For non-resident individuals, the basic income exemption limit is of Rs 2.5 lakh irrespective of age.

Income tax slabs for individuals under old tax regime

Income tax slabs (Rs)

Income tax rates (%)

From 0 to 2,50,000 - 0

From 2,50,001 to 5,00,000 - 5

From 5,00,001 to 10,00,000 - 20

From 10,00,001 and above - 30

 
Income tax slabs for senior citizens under old tax regime

Income tax slabs (Rs) - Income tax rates (%)

From 0 to 3,00,000 - 0%

From 3,0,001 to 5,00,000 - 5%

From 5,00,001 to 10,00,000 - 20%

From 10,00,001 and above - 30%

Income tax slabs for super senior citizens under old tax regime

Income tax slabs (Rs) - Income tax rates (%)

From 0 to 5,00,000 -  0%

From 5,00,001 to 10,00,000 - 20%

From 10,00,001 and above - 30%

 
How to calculate income tax payable under the new tax regime

If you have decided to opt for the new tax regime for the current financial year, i.e., FY 2023-24, then here’s how to calculate the income tax payable. It is important to note that the incomes tax slabs and income tax rates have been kept unchanged for upcoming financial year 2024-25. The calculation will work in the similar fashion for next financial year as well.

 
For FY 2023-24 and FY 2024-25, a salaried individual can claim two deductions – i) standard deduction of Rs 50,000 from salary and pension income and ii) Section 80CCD (2) for employer’s contribution to the employee’s NPS account.

 
Here is an example of how to calculate income tax payable under the new tax regime.

Suppose an individual’s gross total income is Rs 20 lakh in FY 2023-24. Further, his/her employer has deposited Rs 1.5 lakh in his/her Tier-I NPS account. This makes him eligible to claim deduction under section 80CCD (2) of the Income-tax Act.

Particulars

Amount (In Rs)

Gross total income - 20,00,000

Standard deduction from salary/pension - (50,000)

Deduction under section 80CCD (2) - (1,50,000)

Net taxable income - 18,00,000

 Hence, the net taxable income on which income tax payable is to be calculated will be Rs 18 lakh (Rs 20 lakh minus Rs 2 lakh).

 Under the new income tax regime, income between 0 to Rs 3 lakh is exempted from tax. Hence, no tax will be payable on this income. Above this, the income left which is still chargeable to tax is Rs 15 lakh (Rs 18 lakh minus Rs 3 lakh).

 The next income tax slab is above Rs 3 lakh and up to Rs 6 lakh. Thus, out of the taxable income of Rs 15 lakh, Rs 3 lakh (falling in this slab) will be taxed at 5%. The tax payable here will be Rs 15,000. Above this, the income left which is still chargeable to tax is Rs 12 lakh (Rs 15 lakh minus Rs 3 lakh).

 
The next income tax slab is above Rs 6 lakh and up to 9 lakh. Thus, out of the taxable income of Rs 12 lakh, Rs 3 lakh (falling in this slab) will be taxed at 10%. The tax payable here will be Rs 30,000. Above this, the income left which is still chargeable to tax is Rs 9 lakh (Rs 12 lakh minus Rs 3 lakh).

 The next income tax slab is above Rs 9 lakh and up to 12 lakh. Thus, out of the taxable income of Rs 9 lakh, Rs 3 lakh (falling in this slab) will be taxed at 15%. The tax payable here will be Rs 45,000. Above this, the income left which is still chargeable to tax is Rs 6 lakh (Rs 9 lakh minus Rs 3 lakh).

 The next income tax slab is above Rs 12 lakh and up to 15 lakh. Thus, out of the taxable income of Rs 6 lakh, Rs 3 lakh (falling in this slab) will be taxed at 20%. The tax payable here will be Rs 60,000. Above this, the income left which is still chargeable to tax is Rs 3 lakh (Rs 6 lakh minus Rs 3 lakh).

 The last income tax slab is above Rs 15 lakh. Thus, the balance taxable income of Rs 3 lakh (falling in this slab) will be taxed at 30%. The tax payable here will be Rs 90,000.

Particulars

Income (Rs)

Tax amount (Rs)

Net taxable income - 18,00,000
Income exempts up to Rs 3 lakh - (3,00,000) - 0%

Income which is still chargeable to tax (Rs 18 lakh – 3 lakh) 15,00,000 -

Income tax slab of Rs 3 lakh and up to Rs 6 lakh (3,00,000) @ 5% = 15,000

Income which is still chargeable to tax (Rs 15 lakh – 3 lakh) 12,00,000 -

Income tax slab of Rs 6 lakh up to Rs 9 lakh

(3,00,000)

@ 10% = 30,000

Income which is still chargeable to tax (Rs 12 lakh -3 lakh) 9,00,000-

Income tax slab of Rs 9 lakh up to Rs 12 lakh (3,00,000) @15% = 45,000

Income which is still chargeable to tax (Rs 9 lakh -3 lakh) 6,00,000-

Income tax slab of Rs 12 lakh up to Rs 15 lakh (3,00,000) @ 20% = 60,000

Income which is still chargeable to tax (Rs 6 lakh-3 lakh) 3,00,000-

Income tax slab of above Rs 15 lakh (3,00,000) @30% = 90000

Total income tax liability - 2,40,000

Cess at 4% on total income tax payable (i.e. on Rs 2,40,000) - 9,600

Final income tax liability (inclusive of cess)  - 2,49,600

 The total tax payable amount comes to Rs 2,40,000. One must note that cess and surcharge amount is yet to be added. 

Cess is levied at the rate of 4% on the income tax payable. The surcharge is applicable if the income is above Rs 50 lakh. 

After adding a cess of Rs 9,600, the final tax amount is Rs 2,49,600.

Calculating income tax liability under the old tax regime

If you have decided to opt for the old tax regime for the current financial year 2023-24 or plan to opt for the same in the upcoming financial year 2024-25, then it is important to know which income tax slab your income falls under. The slab rate applicable to your income will determine the tax rate at which the last rupee of your income will be taxed at. It is important to note that the interim budget 2024 has kept income tax slabs under the old tax regime unchanged. 

Under the old income tax regime, an individual taxpayer can claim various deductions and tax exemptions to bring down their gross total income. Once eligible tax exemptions and deductions are deducted from the gross total income, then you will arrive at net taxable income. It is on this income; an individual will calculate tax payable.  

An example of how to calculate income tax payable under the old tax regime.  

Suppose an individual aged below 60 years has a gross total income of Rs 17 lakh for the current financial year, i.e., FY 2023-24 (April 1, 2023-March 31, 2024). An individual has decided to opt for the old tax regime for the current financial year. Further, he/she is eligible to claim the following tax exemption and deductions - section 80C for up to Rs 1.5 lakh, section 80CCD(1b) for NPS investment of Rs 50,000, section 80D of Rs 25,000 for medical insurance premium paid and section 80TTA of Rs 10,000 on savings account interest earned. 

Calculating net taxable income under old tax regime

Particulars Amount (in Rs)

Gross total income 17,00,000

Section 80C (1,50,000)

Section 80 CCD(1b) NPS investment (50,000)

Section 80D – medical insurance premium (25,000)

Section 80TTA (10,000)

Net taxable income 14,65,000

After deducting the deductions from the gross total income, one arrives at the net taxable income of Rs 14,65,000. The tax payable will be calculated on the net taxable income. 
 

As per the income tax slab rates table, the first Rs 2.5 lakh from net taxable income will be exempted from tax. This is because there is no tax on income up to Rs 2.5 lakh as per current income tax slabs. Post this, income left on which tax has to be calculated is Rs 12,15,000 (14,65,000-2,50,000). The second slab in the income tax slab table is Rs 2.5 lakh and Rs 5 lakh which is taxed at Rs 5%. This means that out of Rs 12,15,000, then next Rs 2,50,000 will be taxed at 5%. The tax amount will be Rs 12,500. 
 

Now the income left which is still chargeable to tax is Rs 9,65,000. The third slab in the income tax slab table is Rs 5 lakh and Rs 10 lakh, taxed at 20%. This means that out Rs 9,65,000, Rs 5,00,000 will be taxed at 20%. The tax payable here will be Rs 1,00,000.
 

The balance income on which tax has to be calculated is Rs 4,65,000. The tax amount on this balance income (Rs 14,65,000 minus Rs 10,00,000) will be calculated based on the last slab, i.e., above Rs 10 lakh at the rate of 30%. The tax payable amount comes out to be Rs 1,39,500.

Hence, the total tax payable by an individual will be Rs 2,52,000 (Rs 12,500 + 1,00,000+ 1,39,500).

Calculation of income tax payable for taxable income of Rs 14.65 lakh

Particulars Income (Rs) Tax amount (Rs)

Net taxable income 14,65,000 -

Income exempt up to Rs 2,50,000 (2,50,000) 0

Income which is still chargeable to tax (Rs 14,65,000 - 2,50,000) 12,15,000 -

Income tax slab of Rs 2.5 lakh and up to Rs 5 lakh (2,50,000) @ 5% =12,500

Income which is still chargeable to tax (Rs 12,15,000 - 2,50,000) 9,65,000 -

Income tax slab of Rs 5 lakh up to Rs 10 lakh (5,00,000) @20% = 1,00,000

Income which is still chargeable to tax (Rs 9,65,000 - 5,00,000) 4,65,000 -

Income tax slab of above Rs 10 lakh (4,65,000) @ 30% =1,39,500

Total income tax liability - 2,52,000

Cess at 4% on total income tax payable (i.e. on Rs 2,52,000) - 10,080

Final income tax liability (inclusive of cess) - 2,62,080

Do note that cess and surcharge are also levied on the income tax payable. Cess is levied at the rate of 4% and surcharge is levied if the total income exceeds Rs 50 lakh. 
 

From the example above, the cess amount is Rs 10,080. The surcharge will not be applicable as net taxable income does not exceed Rs 50 lakh. The final tax amount payable by an individual is Rs 2,62,080.  

How to know which income tax slab you come under?

To calculate the income tax payable in a particular financial year, one needs to know the tax slabs their income falls in. Also, it will depend on the income tax regime chosen by him/her in a particular financial year. An individual will compare the income tax payable in both the tax regimes before choosing the one.  

To know the income tax slabs and rates applicable to your income, one must first know the taxable income on which tax has to be calculated. If an individual continues with old, existing income tax regime, then he/she is eligible to claim tax exemption (such as House Rent Allowance exemption, Leave Travel Allowance exemption, standard deduction) and deductions under sections 80C to 80U, as eligible for. After claiming and deducting the tax exemptions and deductions that an individual is eligible for, he/she arrives at the taxable income on which income tax payable is calculated.  

For example, your total income from all sources is Rs 12 lakh and you are eligible to claim deduction of Rs 2.10 lakh under sections 80C, 80TTA, 80CCD(1b). The taxable income on which you have to calculate tax will be Rs 9.9 lakh (Rs 12 lakh - Rs 2.10 lakh). Your income tax slab in the old tax regime will be between Rs 5 lakh and Rs 10 lakh. The tax rate is the 20%.  

However, if he/she opts for a new, concessional tax regime, then one cannot claim the tax exemption and deductions mentioned above. The new tax regime allows two deductions - Standard deduction of Rs 50,000 from salary and pension income and Section 80CCD (2) for employer's contribution to the employee's Tier-I NPS account. From the example above, after claiming deduction, the taxable income is, say, Rs 10 lakh (Gross taxable income of Rs 12 lakh minus Rs 2 lakh). The net taxable income of Rs 10 lakh falls under the income tax slab of Rs 9,00,001 and Rs 12,00,000. This will be taxed at 15%.