Income Tax Slabs Under New Regime 2023
Below are the new tax regimes under the new tax slabs:
Income Tax Slabs for Individual Below 60 Years and HUF
Income Slabs
|
Tax Rates
|
Up to Rs. 3 lakhs
|
Nil
|
Rs 3 lakh- Rs 6 lakh
|
5%
|
Rs 6 lakh- Rs 9 lakh
|
10%
|
Rs 9 lakh- Rs 12 lakh
|
15%
|
Rs 12 lakh- Rs 15 lakh
|
20%
|
Above Rs. 15 lakh
|
30%
|
Income Tax Slabs for Individual Between 60 Years and 80 Years
Income Tax Slabs
|
Tax Rates
|
Less than 3 lakhs
|
Nil
|
Between 3 lakhs to 5 lakhs
|
5%
|
Between 5 lakhs to 10 lakhs
|
20%
|
More than 10 lakhs
|
30%
|
Income Tax Slabs for Individual Above 80 Years
Income Tax Slabs
|
Tax Rates
|
Less than 5 lakhs
|
Nil
|
Between 5 lakhs to 10 lakhs
|
20%
|
More than 10 lakhs
|
30%
|
- In the new tax regime, a tax rebate has been introduced on income up to Rs. 7 lakhs. This means you don’t have to pay an income tax of India if your annual income is less than 7 lakh rupees as per the new regime.
- For salaried taxpayers the standard deduction of Rs. 50 thousand has been introduced.
- The highest surcharge is reduced to 25% from 37% for people who are earning more than 5 crore. This change will reduce the tax rates from 42.74% to 39%.
- The new IT tax regime is the default, the taxpayers can choose the old regime.
- Leave encashment has been introduced for non-government employees from Rs 3 lakhs to Rs 25 lakhs.
- On withdrawal of EPF, the TDS rate has been reduced to 20% from 30%.
Surcharge for the Financial Year 2023-24
As per the tax rates, the following surcharge is applicable across all the categories mentioned above
- 10% of income tax > Rs 50 lakhs
- 15% of income tax > Rs 1 crore
- 25% of income tax > Rs 2 crore
- 37% of income tax > Rs 5 crore
The 25% or 37% surcharge, which depends on the circumstance, is not applied to the taxable income under sections 111A, 112A, and 115AD. The maximum rate of additional tax that can be charged on such incomes is 15%.
The maximum rate of additional tax that can be charged on capital gains or dividend income covered by Section 112 is 15%. The maximum surcharge for an Association of Persons (AOP) that treats each member as a separate legal entity is 15%.
Note: There is applicable marginal surcharge relief available.