New Tax Regime Slabs FY 2023-24 (AY 2024-25)

The Indian government introduced the New Income Tax Regime to simplify tax filing. It offers a streamlined process with fewer deductions and exemptions compared to the Old Tax Regime. This new regime became the default option for most taxpayers starting Assessment Year 2024-25.

The key feature of the New Regime is its set of tax slabs, which determine the tax rate you pay on your income. These slabs are generally lower than those in the Old Regime.

The last date to submit your Income Tax Return (ITR) for the Financial Year 2023-24 (Assessment Year 2024-25) without late fees is July 31, 2024. If you miss the deadline, you can still file a belated return before December 31, 2024.

New Tax Regime

who opted for this new regime were unable to avail major deductions such as House Rent Allowance (HRA), Leave Travel Allowance (LTA), Section 80C, and others. As a result, fewer taxpayers chose this option.

Therefore, in the 2023 Budget, significant changes were made to make the new tax regime more attractive through the introduction of various deductions. Here is the New Tax Regime changes in Budget 2023:

Feature Pre-Budget 2023 Post-Budget 2023
Default Regime Not Default Default Regime (if no choice is made)
Tax Rates Basic Exemption: ₹2.5 lakh Basic Exemption: ₹3 lakh, Highest Rate: 30% above ₹15 lakh
Rebate Limit (Section 87A) Up to ₹5 lakh Up to ₹7 lakh, Rebate up to ₹25,000 for income ≤ ₹7 lakh
Standard Deduction Not Applicable ₹50,000 for salaried individuals, ₹15,000 for family pensioners
Surcharge (> ₹5 crore) 37% 25% (Highest Tax Rate reduced to 39%)

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Note: The 2024 interim budget did not introduce any new tax changes for the fiscal year 2024-25. Finance Minister Nirmala Sitharaman decided to keep the current tax rates for both direct and indirect taxes, meaning that the adjustments made for the fiscal year 2023-24 will remain in effect. A complete budget is expected to be presented in July after the formation of the new government following the Lok Sabha elections.

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New Tax Regime Income Tax Slabs for FY 2023-24 (AY 2024-25)

Income tax slabs refer to the different income ranges that are taxed at different rates. These slabs are defined by the government and are used to determine the amount of income tax an individual has to pay. Here are the income tax slabs for the new tax regime in India for the Financial Year 2023-24 (Assessment Year 2024-25):

Income Tax Slab Income Tax Rate
Up to ₹ 3,00,000 Nil
₹ 3,00,001 - ₹ 6,00,000 5% above ₹ 3,00,000
₹ 6,00,001 - ₹ 9,00,000 ₹ 15,000 + 10% above ₹ 6,00,000
₹ 9,00,001 - ₹ 12,00,000 ₹ 45,000 + 15% above ₹ 9,00,000
₹ 12,00,001 - ₹ 15,00,000 ₹ 90,000 + 20% above ₹ 12,00,000

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Rate of Surcharge Under New Tax Regime FY 2023-24 (AY 2024-25)

The surcharge is a tax levied on top of the calculated income tax in both the Old and New Regimes. Here's a table outlining the surcharge rates applicable to your total income:

Total Income Rate of Surcharge Applicable
Up to Rs. 50 Lakh Nil
Above Rs. 50 Lakh and up to Rs. 1 Crore 10%
Above Rs. 1 Crore and up to Rs. 2 Crore 15%
Above Rs. 2 Crore and up to Rs. 5 Crore 25%
Above Rs. 5 Crore 25% (Reduced from 37%)
Note: The New Tax Regime does not have separate surcharge slabs.The surcharge rates are the same for both regimes in FY 2023-24 (AY 2024-25).

Tax Rebate for New Tax Regime FY 2023-24 (AY 2024-25)

The New Tax Regime for FY 2023-24 (AY 2024-25) offers a tax rebate instead of various deductions and exemptions. This rebate reduces your tax liability directly.

Here's how the rebate works:

  • A resident individual can claim a maximum tax rebate of ₹ 25,000 if their total income does not exceed ₹ 7,00,000.
  • In simpler terms, if your income falls under ₹7,00,000 in the New Regime, you are eligible for a rebate that effectively negates your entire tax liability.

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Comparison of New Regime Tax Rates For FY 2022-23 & FY 2023-24

Here is a comparison of the new tax regime tax rates for the Financial Year 2022-23 and Financial Year 2023-24:

Income Slabs New Tax Regime FY 2022-23 New Tax Regime FY 2023-24
Up to ₹2,50,000 Nil Nil
₹2,50,001 - ₹3,00,000 5% NIL
₹3,00,001 - ₹5,00,000 5% 5%
₹5,00,001 - ₹6,00,000 10% 5%
₹6,00,001 - ₹7,50,000 10% 10%

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Income Tax Calculator

An income tax calculator is a tool that estimates an individual's or organization's tax liability. It considers factors like taxable income, tax brackets, deductions, and credits to determine the estimated tax due. This calculator helps users understand their tax obligations and plan their finances accordingly.

Key Changes in ITR Filing from FY 2022-23 to FY 2023-24:

Here are the major procedural changes in filing income tax return from FY 2022-23 to FY 2023-24.

FY 2022-23:

  • Default regime: Old tax regime.
  • To opt for the new regime: File Form 10-IE before the due date.
  • After the due date: Must file under the old regime only.

FY 2023-24:

  • Default regime: New tax regime.
  • To file under the old regime: File Form 10-IEA before the due date.
  • After the due date: Must file under the new regime, forfeiting most deductions/exemptions/losses.

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Frequently Asked Questions

The new tax regime is an alternative tax filing option introduced in India with lower tax rates. However, it comes with fewer deductions and exemptions compared to the old tax regime.

The income tax slabs for the new tax regime are generally lower than those in the old regime (see table below). You can find the specific slabs applicable for FY 2023-24 (AY 2024-25) in the previous answer.

The key differences are:

  • Tax Rates: Generally lower rates under the new regime.
  • Deductions & Exemptions: Limited deductions and exemptions are available under the new regime compared to the old regime.
  • Default Regime: The new regime is now the default option.

Yes, you can choose between the old and new regimes each year while filing your income tax return.

  • Potentially lower tax liability due to lower tax rates.
  • Simpler tax filing process with fewer deductions to manage.

The new regime offers a standard deduction and a rebate under section 87A to compensate for the lack of other deductions.

You should compare your tax liability under both regimes before making a decision. This might involve calculating your taxes under both options and seeing which one results in a lower tax burden.

The new regime is generally applicable to all individual taxpayers, but there are some exceptions (consult a tax advisor for details).

Unfortunately, once you claim deductions under the old tax regime in a particular year, you cannot switch to the new regime for that year.

There will be an option on the income tax return form to choose the new tax regime.

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