Income Tax Slab 2023: This time when you go to file income tax return, you will see many changes in the rules. Many changes have been made in the budget 2023 regarding income tax. The biggest thing is that now the new tax regime is the default tax regime.
In such a situation, now you have to tell your employer in advance that you would like to file tax in any regime. If you do not choose any tax regime yourself, then your ITR will automatically be filed in the new tax regime. Apart from this, the tax slab of the new tax regime has also been changed.
Now there are only six slabs in the new tax regime. Currently the highest tax rate in India is 30% and surcharge and education cess are also levied on it. These tax slabs decide who will pay how much tax on how much income. Let us see who will have to pay maximum tax in the old and new tax regime.
Old vs New Tax Regime: Income Tax Slab for AY2023-24
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Tax rates in the new tax regime | ||||||||
| Resident Individual and HUF < below 60 years and NRIs | Resident individual and HUF between > 60 years to < 80 years | Resident individual and HUF > above 80 years | Rates after Budget 2023 | ||||||
| ₹0-₹2,50,000 | NIL | NIL | NIL | NIL | NIL | ||||
| ₹2,50,000 -₹3,00,000 | 5% | NIL | NIL | 5% | NIL | ||||
| ₹3,00,000-₹5,00,000 | 5% | 5% (tax rebate u/s 87A is available) | NIL | 5% | 5% | ||||
| ₹5,00,000-₹6,00,000 | 20% | 20% | 20% | 10% | 5% | ||||
| ₹6,00,000-₹7,50,000 | 20% | 20% | 20% | 10% | 10% | ||||
| ₹7,50,000-₹9,00,000 | 20% | 20% | 20% | 15% | 10% | ||||
| ₹9,00,000-₹10,00,000 | 20% | 20% | 20% | 15% | 15% | ||||
| ₹10,00,000-₹12,00,000 | 30% | 30% | 30% | 20% | 15% | ||||
| ₹12,00,000-₹12,50,000 | 30% | 30% | 30% | 20% | 20% | ||||
| ₹12,50,000-₹15,00,000 | 30% | 30% | 30% | 25% | 20% | ||||
| ₹15,00,000 | 30% | 30% | 30% | 30% | 30% | ||||
Who will have to pay maximum tax under the old tax regime?
In the old tax regime, the highest tax rate is for those earning above 10 lakhs. If your income is above 10 lakhs and you choose old tax regime, then you will have to pay tax at the rate of 30%. In the old tax regime, all such individual taxpayers in the age group of 60 years to 80 years come under 30%, whose income is above 10 lakhs.
Who will have to pay more tax in the new tax regime?
The highest rate in the new tax regime is also 30%. But this tax rate is for those above 15 lakhs. That is, if your annual income is above 15 lakhs, then 30% of your income will be taxed. In the old tax regime, where people above 10 lakhs pay more than 30% tax, in the new regime, 10% tax is levied on those above 10 lakhs to 12 lakhs, and 20% on the income from 12 lakhs to 15 lakhs. Taxes apply.
How much will be the surcharge?
Surcharge is a separate charge on income tax, a surcharge is levied on the income which is calculated according to the tax rate.
– 10% – ₹50 Lakh – ₹1 Crore
– 15% – ₹1 Crore – ₹2 Crore
– 25% – ₹2 Crore – ₹5 Crore
– 37% – Above ₹5 Crore
