Income Tax Slab & Rate for FY 2023-24

In India, income tax is charged based on an individual’s Income. These tax rates are based on the Range of income called income slabs. The more the income, more the tax. The tax slabs tend to undergo a change during every budget. In this article, we shall understand the tax based on slabs, categories of taxpayers, etc.

Union Budget 2023

Under the new tax regime, the Finance Minister - Ms. Nirmala Sitharaman has tweaked the income tax slab. Let’s find out more about these modifications and changes.

New Tax Slab FY 2023-24

Finance Minister Nirmala Sitharaman has presented the Union Budget 2023-24 intending to increase income and boost purchasing power. As per the speech, the basic exemption limit has come down to Rs. 2.5 lakhs from Rs. 3 lakhs. Not just that, the rebate under Section 87A has been increased to Rs. 7 lakhs from Rs. 5 lakhs.

Here is the new tax slab rate as per the Union Budget 2023-24:

Those individuals who have an income of Rs. 15.5 lakhs and above will be eligible for the standard Deduction of Rs. 52,000. Moreover, the new tax regime has become the Default one. Yet, people have the option to retain the old tax regime, which is as follows:

Income Tax Slab & Rate for 2019-20 (AY 2020-21)

Here's the income tax slab rates FY 2019-2020 for-

• Individuals & HUF (Age <60 years)
• Senior Citizens (Age: 60-80 yrs)
• Senior Citizens (Age > 80 yrs)
• Domestic Companies

1. Individual Tax Payers & HUF (Less Than 60 Years Old)– I

As per the amendments to Section 87(A), if your annual Taxable Income is lower than INR 5,00,000, you can avail the Tax Rebate. The existing laws made way for a 2,500 income tax rebate. However, the updated law ensured that the limit was increased to a 12,500 income tax rebate.

2. Senior Citizens (60 Years Old Or More but Less than 80 Years Old)

As per the amendments to Section 87(A), if your annual taxable income is lower than INR 5,00,000, you can avail the tax rebate. The existing laws made way for a 2,500 income tax rebate. However, the updated law ensured that the limit was increased to a 12,500 income tax rebate.

3. Senior Citizens (80 Years Old Or More )

4. Domestic Companies

How to Calculate Income Tax from Income Tax Slabs?

For illustration purpose, let’s assume a total taxable income of INR 8,00,000, and this income has been calculated by including income from all sources such as salary, interest income, and rental income. Deductions under Section 80 have also been reduced.

Now, let us calculate income tax for FY 2017-18 (AY 2018-19)-

Income Tax Slab & Rate for FY 2017-18 (AY 2018-19)

Here's the income tax slab rates FY 2018-19 for -

1. Individual Tax Payers & HUF (Less Than 60 Years Old)

*Income tax exemption limit for FY 2017-18 is up to INR 2,50,000 for individual & HUF other than those covered in 2 or 3.

2. Senior Citizens (60 Years Old Or More but Less than 80 Years Old)

*Income tax exemption limit for FY 2017-18 is up to INR 3,00,000 other than those covered in 1 or 3.

3. Senior Citizens (80 Years Old Or More)

*Income tax exemption limit for FY 2017-18 is up to INR 5,00,000 other than those covered in 1 or 2.

4. Domestic Companies

*In addition, cess and surcharge are levied as follows: Cess: 3% of corporate tax Surcharge. Taxable income is more than 1 Cr but less than 10 Cr- 7%, Taxable income is more than 10 Cr- 12%

Income Tax Slab & Rate for FY 2016-17 (AY 2017-18)

Here's the income tax slab rates FY 2018-19 for

1. Individual Tax Payers & HUF (Less than 60 Years Old)

*Income tax exemption limit for FY 2016-17 is up to INR 2,50,000 other than those covered in 1 or 2.

2. Senior Citizens (60 Years Old Or More but Less than 80 Years Old)

*Income tax exemption limit for FY 2016-17 is up to INR 3,00,000 other than those covered in 1 or 3.

3. Senior Citizens (80 Years Old Or More)

Income tax exemption limit for FY 2016-17 is up to INR 5,00,000 other than those covered in 1 or 2.

4. Domestic Companies

In addition, cess and surcharge are levied as follows: Cess: 3% of corporate tax Surcharge. Taxable income is more than 1Cr but less than 10 Cr- 7%. Taxable income is more than 10Cr- 12%.

Comparing Indian Tax Rates with Other Countries

As per the report by KPMG-

'A country’s personal income tax rate is only one indicator of how much tax an individual actually ends up paying on their income.'

Effective Income Tax and Social Security Rates on USD100,000 of Gross Income

Source- KPMG's Individual Income Tax and Social Security Rate Survey 2012, KPMG International