(Part 1 of the article published by Smrithi Jain, Times of India, February 2023)
Income Tax slab 2023-2024 details and highlights: New income tax regime has seen a major revamp in the income tax slab rates for 2023-24. The basic exemption limit under the new income tax regime has been hiked to Rs 3 lakh. The income tax rebate limit available for salaried and individual taxpayers under the new income tax regime has been hiked to Rs 7 lakh from the present Rs 5 lakh. See the table below to know the income tax slabs 2023 for the new income tax regime.
Income Tax Slabs 2023: These are the new income tax slabs under the new tax regime
1. Up to Rs 3 lakh income there is 0% or NIL tax
2. From Rs 3 lakh to Rs 6 lakh the tax rate is 5%
3. From Rs 6 lakh to Rs 9 lakh the tax rate is 10%
4. From Rs 9 lakh to Rs 12 lakh the tax rate is 15%
5. From Rs 12 lakh to Rs 15 lakh the tax rate is 20%
6. Above Rs 15 lakh the tax rate is 30%
These were the income rates for 2022-23 under the new tax regime
1. Up to Rs 2.5 lakh income there is 0% or NIL tax
2. From Rs 2.5 lakh to Rs 5 lakh the tax rate is 5%
3. From Rs 5 lakh to Rs 7.5 lakh the tax rate is 10%
4. From Rs 7.5 lakh to Rs 10 lakh the tax rate is 15%
5. From Rs 10 lakh to Rs 12.5 lakh the tax rate is 20%
6. From 12.5 lakh to Rs 15 lakh the tax rate is 25%
7. Above Rs 15 lakh the tax rate is 30%
New Income Tax Regime 2023 vs Present New Tax Regime Vs Old Regime: Tax Savings Calculated
| Salary income before any deductions / exemptions | Existing regime (Old Regime) | Current new regime (FY23) | Proposed new regime (FY24) |
| 5,00,000 | – | – | – |
| 5,50,000 | – | 18,200 | – |
| 6,00,000 | – | 23,400 | – |
| 7,00,000 | – | 33,800 | – |
| 7,50,000 | 23,400 | 39,000 | – |
| 10,00,000 | 75,400 | 78,000 | 54,600 |
| 15,00,000 | 2,10,660 | 1,95,000 | 1,45,600 |
| 30,00,000 | 6,78,600 | 6,63,000 | 6,08,400 |
| 70,00,000 | 21,19,260 | 21,02,100 | 20,42,040 |
| 1,50,00,000 | 50,85,990 | 50,68,050 | 50,05,260 |
| 5,00,00,000 | 1,91,78,250 | 1,91,58,750 | 1,90,90,500 |
| 5,50,00,000 | 2,31,56,562 | 2,31,35,190 | 2,10,40,500 |
| 6,00,00,000 | 2,52,93,762 | 2,52,72,390 | 2,29,90,500 |
(Part 2 continued in our next post…..)