Budget 2023 - Income Tax Slab Rates - New Regime
Starting from 2024-25 assessment year, the tax rates specified in section 115BAC(1A) of the Act will apply to determine income tax payable for individuals, Hindu undivided families, associations of persons (other than co-op societies), bodies of individuals (incorporated or not), or artificial juridical persons, as under -
Rate of tax
Upto Rs. 3,00,000
From Rs. 3,00,001 to Rs. 6,00,000
From Rs. 6,00,001 to Rs.9,00,000
From Rs. 9,00,001 to Rs. 12,00,000
From Rs. 12,00,001 to Rs. 15,00,000
Above Rs. 15,00,000
New Regime would be the Default Regime -
As per Section 115BAC(1A) of the Act, the default tax rates are specified. The calculation of income tax payable will exclude exemptions or deductions specified in Clause (i) of Subsection (2) of Section 115BAC.
However, deductions for standard deduction (as per Clause (ia) of Section 16 of the Act), family pension (as per Clause (iia) of Section 57 of the Act), and deposits in the Agniveer Corpus Fund (as per Subsection (2) of Section 80CCH of the Act) will be permitted for computing the taxable income under Section 115BAC(1A). This exclusion applies to all individuals, except those who have exercised an option under Subsection (6) of Section 115BAC.
Increase in rebate u/s 87A -
As per Section 87A of the Act, an individual resident in India with total income not exceeding INR 5 Lakh is eligible for a 100% rebate on income tax payable, making them exempt from paying income tax. Effective from the 2024-25 assessment year, this rebate eligibility has been increased to a total income not exceeding INR 7 Lakh for individuals whose income is chargeable under Section 115BAC (1A).