Income Tax Calculator 2024: Income Tax slabs for FY 2023-24 in India
The income tax calculator allows an individual to compare the income tax liability in two financial years. Currently, the income tax calculator shows income tax liability in the current financial year, 2024-25 (ending on March 31, 2025), and the previous financial year, 2023-24 (between April 1, 2023 and March 31, 2024). The income tax calculator also compares the income tax liability in the new tax regime and in the old tax regime for the two financial years.
The February 2024 budget was an interim budget because of Lok Sabha elections. The budget did not announce any changes in the income tax laws. The full budget for FY 2024-25 will be announced after the government is formed, probably in July or August. Till then, the laws remain the same.
Remember, from April 1, 2023, the income tax laws under the new tax regime were changed to make it more attractive. The income tax laws under the old tax regime remain unchanged.
Currently, the income tax laws under the new tax regime are as follows:
Income tax slabs under the new tax regime
*Cess at the rate of 4% will be added to the income tax amount
*Surcharge will be applicable on taxable incomes above Rs 50 lakh
As explained earlier, the new tax regime is the default tax regime. So if an individual does not inform his/her employer of the preferred choice of tax regime, then TDS on salary will be deducted as per income tax slabs applicable under the new tax regime.
However, a taxpayer can choose any tax regime while filing ITR. The option of choosing any tax regime while filing ITR is available if tax return is filed before expiry of ITR filing deadline.
Income tax slabs under old tax regime
The age of the individual will determine the income tax slabs applicableused for calculation under the old tax regime. There are no changes in the income tax laws under the old tax regime. Thus, if a taxpayer opts for the old tax regime, the calculation will be done on the rates that were applicable the previous year.
For individuals below 60 years, the basic exemption limit is Rs 2.5 lakh for FY 2023-24 and FY 2024-25.
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 remains Rs 3 lakh for FY 2023-24 and FY 2024-25.
For super senior citizens, aged 80 years and above, the basic exemption limit remains Rs 5 lakh for FY 2023-24 and FY 2024-25.
Cess will be applicable at 4% on the income tax payable. Further, a surcharge will be applicable on taxable incomes above Rs 50 lakh. Those earning above Rs 5 crore will pay a surcharge of 37% in the old tax regime. A rebate under Section 87A will be available for taxable incomes up to Rs 5 lakh in the old tax regime for FY 2023-24 and FY 2024-25.
The income tax calculator takes into account various tax exemptions and deductions that an individual is eligible for under the old as well as new tax regimes. Some of the tax exemptions and deductions that are available are: standard deduction of Rs 50,000 from salary income, tax exemption on house rent allowance, Section 80C, Section 80D and Section 80TTA.
The new tax regime offers standard deduction of Rs 50,000 from salary/pension income and NPS deduction up to 10% of basic salary under Section 80CCD(2).
FAQs:
What is the amount of standard deduction available under the new tax regime?
Standard deduction of Rs 50,000 is available to taxpayers having income from salary and pension income.
The February 2024 budget was an interim budget because of Lok Sabha elections. The budget did not announce any changes in the income tax laws. The full budget for FY 2024-25 will be announced after the government is formed, probably in July or August. Till then, the laws remain the same.
Remember, from April 1, 2023, the income tax laws under the new tax regime were changed to make it more attractive. The income tax laws under the old tax regime remain unchanged.
Currently, the income tax laws under the new tax regime are as follows:
- The income tax slabs revised from 6 to 5
- Basic exemption limit hiked to Rs 3 lakh from Rs 2.5 lakh
- Standard deduction of Rs 50,000 introduced for salaried individuals, pensioners
- Even family pensioners can avail standard deduction of Rs 15,000
- Highest surcharge rate, applicable for incomes above Rs 5 crore, reduced to 25% from 37%
- 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 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
Income tax slabs under the new tax regime
*Cess at the rate of 4% will be added to the income tax amount
*Surcharge will be applicable on taxable incomes above Rs 50 lakh
As explained earlier, the new tax regime is the default tax regime. So if an individual does not inform his/her employer of the preferred choice of tax regime, then TDS on salary will be deducted as per income tax slabs applicable under the new tax regime.
However, a taxpayer can choose any tax regime while filing ITR. The option of choosing any tax regime while filing ITR is available if tax return is filed before expiry of ITR filing deadline.
Income tax slabs under old tax regime
The age of the individual will determine the income tax slabs applicableused for calculation under the old tax regime. There are no changes in the income tax laws under the old tax regime. Thus, if a taxpayer opts for the old tax regime, the calculation will be done on the rates that were applicable the previous year. For individuals below 60 years, the basic exemption limit is Rs 2.5 lakh for FY 2023-24 and FY 2024-25.
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 remains Rs 3 lakh for FY 2023-24 and FY 2024-25.
Income tax slabs for senior citizens under old tax regime
For super senior citizens, aged 80 years and above, the basic exemption limit remains Rs 5 lakh for FY 2023-24 and FY 2024-25.
Income tax slabs for super senior citizens under old tax regime
Cess will be applicable at 4% on the income tax payable. Further, a surcharge will be applicable on taxable incomes above Rs 50 lakh. Those earning above Rs 5 crore will pay a surcharge of 37% in the old tax regime. A rebate under Section 87A will be available for taxable incomes up to Rs 5 lakh in the old tax regime for FY 2023-24 and FY 2024-25.
The income tax calculator takes into account various tax exemptions and deductions that an individual is eligible for under the old as well as new tax regimes. Some of the tax exemptions and deductions that are available are: standard deduction of Rs 50,000 from salary income, tax exemption on house rent allowance, Section 80C, Section 80D and Section 80TTA.
The new tax regime offers standard deduction of Rs 50,000 from salary/pension income and NPS deduction up to 10% of basic salary under Section 80CCD(2).
FAQs:
