What is an Income Tax Slabs?
Income tax slabs in India are what you need to pay as the income tax based on the slab system that you come under. Depending on your income, you may fall under a different tax slab. Hence, you need to pay a higher tax with a high income. And if you have a low income, you will either pay less or no tax.
Income tax slabs in India were introduced to create a fair taxation system in India. And at every budget announcement, the tax slab is changed and updated.
New Income Tax Slabs in India According to Union Budget 2023-2024
In the new regime of income tax slabs in India, you have the option of choosing either of the following:
- To pay under the existing tax rates. If you stay in the old regime, you can get exemptions and rebates, but at the same time, you will be paying taxes at a high rate.
- Or, you could pay income tax under the new tax regime at a lower rate. But, it comes with the condition that you forgo any permissible deductions and income tax exemptions.
If you choose to pay your income tax under the new tax regime, then the tax slabs in India, according to the 2023 Union Budget, include the following:
| Income Tax Slabs | Income Tax Rates applicable for FY 2023-24 |
| Rs. 3,00,000 | No Tax |
| Rs. 3,00,001 to Rs. 6,00,000 | 5% |
| Rs. 6,00,001 to Rs. 9,00,000 | 10% |
| Rs. 9,00,001 to Rs. 12,00,000 | 15% |
| Rs. 12,00,001 to Rs. 15,00,000 | 20% |
| More than Rs. 15,00,000 | 30% |
The new tax regime applies to the following categories:
- Hindu Undivided Family (HUF)
- Senior citizens between 60 to 80 years
- Individuals up to 60 years of age
- Super senior citizens over 80 years
You must also consider that if your net taxable income is Rs. 7 lakhs, you become eligible for a tax rebate under section 87A of the new tax regime. The rebate limit is Rs. 5 lakhs if you pay taxes under the old tax system.
Income Tax Slabs Rate for Old Tax Regime Financial Year 2023-24
The old tax regime is applicable between three age categories of tax-paying individuals. These categories include the following:
Income Tax Slabs in India for HUF and Individuals under 60 Years
| Income Tax Slabs | Tax Rates |
| Rs. 2,50,000 | NIL |
| Rs. 2,50,001 to Rs. 5,00,000 | 5% |
| Rs. 5,00,001 to Rs. 10,00,000 | 20% |
| More than Rs. 10,00,000 | 30% |
For HUF individuals below 60 years and NRIs, the income tax exemption limit is Rs. 2.5 lakh for the FY 2023-24. There is also an extra 4% health and education cess applied to the amount of tax.
Income Tax Slabs in India for Individuals over 80 Years
| Income Tax Slabs | Tax Rates |
| Till Rs. 5,00,000 | NIL |
| Rs. 5,00,001 to Rs. 10,00,000 | 20% |
| More than Rs. 10,00,000 | 30% |
For super senior citizens, the exemption limit on income tax is Rs. 5 lakh in this financial year. Read more...