The taxable income slabs divide the taxpayers into different categories and assign them different tax rates. These categories depend on the age of the taxpayers, as mentioned below:
These slabs also vary depending on the regime you opt for. By knowing these slabs and the tax rates, you can plan your finances and taxes accordingly. Read on to know the tax slabs for income tax under the old and new regimes, tax rates for taxpayers of different ages and more.
As per the Union Budget 2023, the government announced the revised taxable income slabs. While some citizens can opt for the old regime, others can pay taxes as per the new regime. The rates for the old and new tax slab of income tax are as follows.
| Income Slabs | Rates for Taxpayers up to 60 Years & NRIs | Rates for Taxpayers over 60 Years and up to 80 Years | Rates for Taxpayers Above 80 Years |
|---|---|---|---|
| Up to ₹2.5 lakhs | Nil | Nil | Nil |
| Between ₹2.5 lakhs and ₹3 lakhs | 5% | Nil | Nil |
| Above ₹3 lakhs and less than ₹5 lakhs | 5% | 5% | Nil |
| Between ₹5 lakhs and ₹10 lakhs | 20% | 20% | 20% |
| ₹10 lakhs and above | 30% | 30% | 30% |
| Income Slabs | Rate for All Taxpayers |
|---|---|
| Up to ₹3 lakhs | Nil |
| Between ₹3 lakhs and ₹6 lakhs | 5% |
| Between ₹6 lakhs and ₹9 lakhs | 10% |
| Between ₹9 lakhs and ₹12 lakhs | 15% |
| Between ₹12 lakhs and ₹15 lakhs | 20% |
| ₹15 lakhs and above | 30% |
For taxpayers with income exceeding a certain threshold, other tax rates known as surcharges will also apply. The applicable rates are as follows:
| Income Slab | Tax Rates |
|---|---|
| Above ₹50 lakhs and less than ₹1 crore | 10% of the net income |
| Above ₹1 crore and below ₹2 crores | 15% of the net income |
| ₹2 crores and above | 25% of the net income |
The slab of income tax in India also depends on the nature of your income. Here’s how taxpayers can choose between the old and new tax regimes.
| Nature of Income | Regime Applicable |
|---|---|
| Salary income or any other income attracting TDS | Employees have the option to choose the regime at the beginning of the financial yearIf they don’t have a preference, the new regime appliesTaxpayers cannot change the regime in the middle of the financial yearThey have the option to shift to the old regime at the beginning of the next financial year |
| Income from business and profession | Taxpayers with business or professional income can only choose the regime once |
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As per the Union Budget 2023, individuals earning a total income of up to ₹2.5 lakhs are not liable to pay tax. If your net annual income is over ₹2.5 lakhs, you must pay tax as per the applicable tax rate.
Yes, all individuals above 18 years with taxable income must pay taxes.
All individuals can claim standard deductions up to ₹50,000 under the old and new tax regime for FY 2023-24.
