Income Tax Calculator 2023: Income Tax slabs for FY 2023-24 in India
Finance Minister Nirmala Sitharaman announced slew of changes in income tax slabs under the new tax regime in Budget 2023. The changes are announced in the new tax regime to make it more attractive for the individual taxpayers. An individual having taxable income of Rs 7.5 lakh, who would have paid Rs 39,000 as income tax in current financial year, will pay zero tax in the next financial year. Hence, an income tax savings of Rs 39,000 under the new tax regime.
The key changes announced under the new tax regime are:
- The income tax slabs has been revised from 6 to 5 under the new tax regime
- Basic exemption limit hiked to Rs 3 lakh from Rs 2.5 lakh under the new tax regime
- Standard deduction introduced for salaried individuals, pensioners under the new tax regime
- Highest surcharge rate reduced to 25% from 37% under the new tax regime
- Rebate under Section 87A increased to taxable income of Rs 7 lakh under the new tax regime from Rs 5 lakh earlier. This would mean that from FY 2023-24, individuals having taxable incomes up to Rs 7 lakh and opting for the new tax regime will effectively pay zero taxes
- The new tax regime would be the default option for taxpayers. However, an individual can choose to opt for the old tax regime.
Revised Income tax slabs under the new tax regime for FY 2023-24
|Income tax slabs under new tax regime
|Income tax rates under new tax regime
|O to Rs 3 lakh
|Rs 3 lakh to Rs 6 lakh
|Rs 6 lakh to Rs 9 lakh
|Rs 9 lakh to Rs 12 lakh
|Rs 12 lakh to Rs 15 lakh
|Income above Rs 15 lakh
*Surcharge will be applicable on taxable incomes above Rs 50 lakh
The new income tax slabs under the new tax regime will be applicable from April 1, 2023, for FY 2023-24. So, in April, when you submit the investment declarations to your employer for calculation of taxes on salary for FY 2023-24, your employer will assume that you have opted for the new tax regime unless you specify otherwise.
The new income tax slabs under the new tax regime will be applicable for the incomes earned between April 1, 2023 and March 31, 2024. While filing income tax return for FY 2023-24 (AY 2024-25), the new income tax slabs under new tax regime will be used. The last date to file income tax returns for individuals whose accounts are not audited is July 31, 2024.
If you specifically opt for old tax regime for next financial year i.e., FY 2023-24, then there is no change in the income tax slabs and rates. The income tax slabs for FY 2023-24 is same as FY 2022-23 under the old tax regime. Thus, if you are opting for old tax regime in next financial year, then income tax calculation will be done on the same income tax rates.
From April 1, 2023, individual will have to specifically opt for the old tax regime because new tax regime has become the default tax regime. If you want to opt for old tax regime, then you will have to ensure that your income tax return is filed on or before the deadline.
The income tax calculator takes into account various tax exemptions and deductions that you are eligible for under the old as well as new tax regime. The online income tax calculator tax into account standard deduction of Rs 50,000 from salary income, tax exemption on house rent allowance, Section 80C, Section 80D, Section 80TTA and other deductions that you are eligible for.
All the deductions that you are eligible for under both the tax regimes are considered by income tax calculator to calculate income tax liability.
Income tax slabs for current financial year 2022-23
If you are planning the tax-savings for current financial year, then above-mentioned income tax rates will not be applicable. For tax-saving for current financial year and filing the income tax return for FY 2022-23 (AY 2023-24), the existing new income tax regime or old income tax regime will be referred. The last date to file income tax return for FY 2022-23 (AY 2023-24) for individuals whose accounts are not required to be audited is July 31, 2023.
Here are the income tax slabs for FY 2022-23 that you will need to file income tax return this year.
Income tax slabs under existing new tax regime for FY 2022-23
Income tax slabs under the old tax regime depends on the age of an individual.
For individuals below 60 years of age, the basic exemption limit is Rs 2.5 lakh for FY 2022-23 and FY 2023-24.
Income tax slabs for individuals under old tax regime
For senior citizens, aged 60 years and above but below 80 years, the basic exemption limit is Rs 3 lakh for FY 2022-23 and FY 2023-24.
Income tax slabs for senior citizens under old tax regime
For super senior citizens, aged 80 years and above, the basic exemption limit is Rs 5 lakh for FY 2022-23 and FY 2023-24
Income tax slabs for senior citizens under old tax regime
Cess will be applicable at 4% on the income tax payable for FY 2022-23 and FY 2023-24. Further, surcharge will be applicable on taxable incomes above Rs 50 lakh. A rebate under Section 87A will be available in both the tax regimes for taxable incomes up to Rs 5 lakh for FY 2022-23.
- Is standard deduction available under new tax regime?
Yes, standard deduction is available under new tax regime. However, this deduction is available on salary income from FY 2023-24 for incomes earned between April 1, 2023 and March 31, 2024.
- Can family pensioner claim standard deduction under new tax regime?
Yes, a family pensioner can claim standard deduction of Rs 15,000 under new tax regime. This standard deduction will be allowed from financial year 2023-24
- What are the deductions that can be claimed under new tax regime?
For current FY 2022-23, deduction under Section 80CCD (2) can be claimed under the new tax regime. From next financial year 2023-24, standard deduction of Rs 50,000 from salary income and deduction under section 80CCD (2) under new tax regime are allowed.
Budget 2023 Announcements: Income Tax Slabs for FY 2023-24 in India
The finance minister Nirmala Sitharaman announced some major changes in taxes for individual in her Budget 2023. The main highlight was the increase in the taxable income limit from Rs 5 lakhs to Rs 7 lakhs for availaing rebate u/s 87A. Thus, an individual with taxable income upto Rs 7 lakhs would now pay zero tax under the new tax regime. Another key highlight was the revision in the tax slabs for those opting the new tax regime. The budget also catered to the needs of the super rich and the surcharge rates were dropped from 37% to 25% for those having taxable income exceeding Rs 5 cr. The FY 2023-24 will start from April 1, 2023.
The FM also mentioned that the new tax regime will be the default choice for each individual and one will have to opt for old tax regime explicitly. Those under the old tax regime will continue to avail deductions/tax exemptions such section 80C, 80D deductions, HRA, LTA tax exemptions etc. without any changes in tax rates.The new tax regime offers lower tax rates, but split across slabs as compared to the old tax regime.
Also Read: Revised tax slabs under New Tax Regime
Another thing to keep in mind is that under the old income tax regime, basic tax exemption limit for an individual taxpayer depends on their age and residential status. However, in the new tax regime, the basic exemption limit is Rs 2.5 lakh in a financial year.
Revised Tax Slabs under New Tax Regime
|Income tax slabs (In Rs)
|Income tax rate (%)
|From 0 to 3,00,000
|From 3,00,001 to 6,00,000
|From 6,00,001 to 9,00,000
|From 9,00,001 to 12,00,000
|From 12,00,001 to 15,00,000
Do keep in mind that individuals having business income can opt for new tax regime. However, once opted they get one opportunity in their lifetime to switch back to the old tax regime.