ITR Filing 2023-24: Income Tax Slabs in Old and New Tax Regime for FY 2023-24 | AY 2024-25

ITR Filing 2023-24: As we are near the end of the Income Tax Return (ITR) filing season for the assessment year 2024-25, understanding income tax slabs for the financial year 2023-24 is important. This will help you to know income tax rates under both new and old tax regimes. In this article, we highlighted important aspects such as rebates, exemptions surcharges and cess.

Under Old Tax Regime Income Tax Slabs for Year F.Y 2023-24

The old tax regime is known for its structured tax slabs. It offers numerous deductions and exemptions. Let us dive in depth about tax slabs:

Under this regime, taxpayers can assert various deductions and exemptions as per eligibility to reduce their taxable income. They can reduce the overall tax burden for taxpayers under the old regime.

Income Tax Rebate under the Old Tax Regime

The old tax regime gives rebates under Section 87A to provide relief to individuals with lower incomes. Individuals with a total income of up to Rs. 5 lakh are eligible for rebate under Section 87A. The maximum rebate amount is Rs 12500. This effectively nullifies tax liability for those earning Income up to Rs. 5 lakh. This rebate makes sure that individuals in the lower income bracket do not have any tax liability after applying the rebate.

Basic Exemption for Senior Citizens in Old Tax Regime

In the previous tax regime, senior citizens aged 60 years and above had a higher basic exemption threshold of Rs. 3 lakh. Super senior citizens aged 80 years and above enjoy a basic exemption limit of Rs.5 lakh. These slab exemptions are higher in old tax regime. Compared to those in the new tax regime.

These higher exemption limits acknowledge reduced earning possibilities and increased money requirement of older taxpayers.

Income Tax Slabs for the Year 2023-24 under New Tax Regime

The new tax regime’s goal is to make the tax filing process easy by offering lower tax rates without allowing for deductions. This approach is designed to make compliance easier. Taxpayers who do not have extensive exemptions and deductions may opt for this scheme as this will be more beneficial for them. Filings are made easier and clearer under the new tax regime. A predictable tax burden is provided based on income levels.

This regime is helpful for those who do not have significant deductions. They prefer straightforward tax calculations.

Income Tax Slabs for the year 2023-24: Rebate Under New Regime

The new tax regime also gives rebates under Section 87A that will reduce tax liability. Individuals with a total income of up to Rs.7 lakh are eligible for this. The rebate amount is the same in the new tax regime as well.

The individuals who are earning up to Rs.7 lakh do not need to pay any tax under the new regime making it a better option for lower and middle-income earners. Surcharges are additional taxes levied on high-income individuals. The rates are consistent across both regimes. These surcharges are applied to income tax amounts. They significantly increase the tax burden for high-income earners.

Income Tax Slabs for the Year 2023-24: Cess

A 4% Health and Education Cess is levied on income tax amount. Plus any applicable surcharge under both old and new regimes. This cess is meant to fund health and education initiatives by the government.

ITR Filing for the Year 2023-24

Starting from 2023-24, the new tax regime is the default option for taxpayers. Taxpayers are given the flexibility to choose the old regime. This can be made at the time of filing their ITR.

ITR Filing for the year 2023-24 Deadline

The deadline to file an ITR is July 31, 2024. Filing on time is very important. Also, follow the tax regulations properly because helps in obtaining refunds quickly.

Understanding these details can help taxpayers make informed decisions. They can use their tax liabilities properly. Consulting tax professionals can provide expert advice to individual financial situations. This ensures the most beneficial tax outcomes.