Budget 2023 New Income Tax Regime- New Income Tax Slabs FY 2023-24 (AY 2024-25) & FY 2022-23 (AY 2023-24) – New & Old Regime Tax Rates for FY 2023-24 & FY 2022-23

In India, income tax is levied on the income earned by individuals, Hindu Undivided Families (HUFs), firms, association of persons (AOPs), body of individuals (BOIs), companies, and any other person. The income tax rate varies based on the amount of taxable income and is divided into different tax slabs. The tax slabs and tax rates are revised by the government from time to time

Budget 2023 New Income Tax Regime

Income tax has classified three categories of “individual “taxpayers such as:

  • Individuals (aged less than of 60 years) including residents and non-residents
  • Resident Senior citizens (60 to 80 years of age)
  • Resident Super senior citizens (aged more than 80 years)

Income Tax Slab Rates for FY 2022-23 (AY 2023-24) – New Tax Regime & Old Tax Regime

The taxpayer opting for New Tax regime of concessional rates will have to Not avail certain exemptions and deductions available in the existing old tax regime. In all there are 70 deductions & exemptions that are not allowed, out of the 70 which the most commonly used exemption are listed below:

The below list of new tax rate regime on Common Exemption & Deduction “ not allowed

  • Leave Travel Allowance (LTA)
  • Standard deduction on salary
  • Professional tax
  • House Rent Allowance (HRA)
  • Children education allowance
  • Conveyance allowance
  • Helper allowance
  • Relocation allowance
  • Daily expenses in the course of employment
  • Other special allowances [Section 10(14)]
  • Interest on housing loan (Section 24)
  • Deduction under Chapter VI-A deduction (80C,80D, 80E and so on) (Except Section 80CCD(2))

List of new Tax rate regime deductions “allowed”

  • Sport allowance for specially abled people
  • Conveyance allowance for expenditure incurred for travelling to work
  • Investment in Notified Pension Scheme under section 80CCD(2)
  • Depreciation u/s 32 of the Income-tax act except additional depreciation
  • Deduction for employment of new employees under section 80JJAA
  • Any allowance for travelling for employment or on transfer

Comparison between the exemptions & deductions available under the new and the old tax regime

Note :-

  • Basic exemption limit for NRIs is of Rs 2.5 Lakh irrespective of age.
  • Additional 4 % rate will be added as Health and Education cess to the income tax liability in all cases.
  • Surcharge applicable as per tax rates below in all categories of Individuals, i.e Individuals & HUF
  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

Income tax rate for Partnership firm or LLP as per old/ new regime

A partnership firm/ LLP is taxable at 30%.

Note:-

  • Health and Education cess at the rate of 4 %
  • 12% Surcharge is levied on incomes above Rs 1 crore
  • There are no concessional rates introduced for firms / LLPs in nex tax regime

Domestic companies New Tax regime Slab rates – FY 2022-23.

*Please refer to the new sections for checking the applicability for above concessional income tax rates.

Note:-

  • Additional Health and Education cess at the rate of 4 % will be added to the income tax liability in all cases
  • Surcharge applicable for companies is as below
  1. 7% of Income tax where total income > Rs 1 crore
  2. 12% of Income tax where total income > Rs.10 crore
  3. 10% of income tax where domestic company opted for section 115BAA and 115BAB

Fill Your Income Tax Return?

With Expert Guidance 

    Know More about Filling