Income Tax Slabs FY 2023-24 & AY 2024-25 (New & Old Regime Tax Rates)
The income tax slabs for FY 2023-24 and AY 2024-25 vary between the old and new tax regimes, affecting different categories of taxpayers, including Indian residents, senior citizens, and super senior citizens. Here’s a breakdown of the key points:
Income Tax Slabs for FY 2023-24:
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Old Regime:
- Tax rebate up to Rs. 12,500 if total income doesn’t exceed Rs. 5,00,000.
- Exemption limits: Rs 2,50,000 for individuals, HUFs, and NRIs; Rs 3,00,000 for senior citizens; Rs 5,00,000 for super senior citizens.
- Surcharge and cess applicable.
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New Regime:
- Tax rebate up to Rs. 25,000 if total income doesn’t exceed Rs. 7,00,000.
- Exemption limit: Rs 3,00,000 for individuals, HUFs.
- Surcharge and cess applicable.
Comparison of Tax Rates:
- The old tax regime has different slabs based on age categories, while the new regime has a uniform tax rate for all.
- The new regime offers concessional rates but restricts deductions and exemptions.
Procedural Changes:
- Default regime for FY 2023-24 is the new tax regime.
- Option to choose old or new regime available at the start of the financial year.
- Selection can’t be changed during the year but can be modified when filing the Income Tax Return.
Calculating Income Tax:
- Tax calculation examples provided for both old and new regimes.
- Details on tax slabs and deductions for different income levels.
Surcharge and Cess:
- Surcharge rates applicable based on income thresholds.
- Additional Health and Education cess at 4%.
Consequences of Late Filing:
- Failure to file within the due date results in mandatory filing under the new regime, with fewer exemptions and deductions.
Comparative Analysis:
- New regime benefits middle-class taxpayers; old regime better for high-income earners.
- Factors influencing choice between regimes outlined.
Opting for Regime:
- Procedures for selecting old vs. new regime based on nature of income.
Income Tax Rates for Domestic Companies:
- Detailed rates for different scenarios applicable to domestic companies.
Conclusion:
- Understanding of income tax slabs, procedural changes, and implications aids taxpayers in making informed decisions based on their financial situation and goals.
This comprehensive overview helps taxpayers navigate the complexities of income tax regulations, empowering them to optimize their tax planning strategies.
