A Complete Guide to Income Tax Slabs in India
What Is the Income Tax Slab?
In India, the Income Tax applies to individuals using a slab system, with different tax rates assigned to different income groups. This means that as a person’s income rises, so do the tax rates. This sort of taxation allows for a more equitable and progressive tax structure in the country. The income tax slabs are updated on a regular basis, usually during the fiscal year. The type of taxpayer will affect the slab rates. Let’s take a look at all of the slab rates for FY 2022-23 (AY 2023-24) and FY 2023-24 (AY 2024-25).
Income Slabs | Individuals Below The Age Of 60 Years and NRIs |
Up to Rs 2.5 lakh | NIL |
Rs 2.5 lakh – Rs 5 lakh | 5% |
Rs 5 lakh – Rs 10 lakh | 20% |
Up to Rs 10 lakh | 30% |
FY 2023-24 (AY 2023-24) Revised Income Tax Slab Rate – For New Regime:
Income Slabs | Income Tax RatesFY 2023-24 (AY 2024-25) |
Up to Rs 3,00,000 | Nil |
Rs 3.00,000 to Rs 6,00,000 | 5% on income which exceeds Rs 3,00,000 |
Rs 6,00,000 to Rs 900,000 | Rs. 15,000 + 10% on income more than Rs 6,00,000 |
Rs 9,00,000 to Rs 12,00,000 | Rs. 45,000 + 15% on income more than Rs 9,00,000 |
Rs 12,00,000 to Rs 1500,000 | Rs. 90,000 + 20% on income more than Rs 12,00,000 |
Above Rs 15,00,000 | Rs. 150,000 + 30% on income more than Rs 15,00,000 |
How Do You Calculate Income Tax Based on Income Tax Slabs?
Rohit’s total taxable income is Rs 80,000. This income was estimated by combining all sources of income, such as salary, rental income, and interest income. Section 80 deductions have also been lowered. Rohit is curious about his tax obligations for Fiscal Year 2022-23 (Academic Years 2023-2024).
Income Tax Slabs | Tax Rate | Tax Amount |
|---|---|---|
*Income up to Rs 2,50,000 | No tax | – |
Income from Rs 2,50,000 – Rs 5,00,000 | 5% (Rs 5,00,000 – Rs 2,50,000) | Rs 12,500 |
Income from Rs 5,00,000 – 10,00,000 | 20% (Rs 8,00,000 – Rs 5,00,000) | Rs 60,000 |
Income more than Rs 10,00,000 | 30% | – |
Tax |
| Rs 72,500 |
Cess | 4% of Rs 72,500 | Rs 2,900 |
Total tax in FY 2022-23 (AY 2023-24) | Rs 75,400 | |
Conclusion
The income tax slabs in India define the rates at which income is taxed. Individuals (under 60 years old) pay no tax on income up to 2.5 lakh and pay a maximum tax rate of 30% on income exceeding 10 lakh in the fiscal year 2021-2022. Senior citizens and extremely senior citizens have distinct slabs. It’s critical to stay up to date on the current tax rules because these slabs might vary from year to year. Furthermore, there are deductions and exemptions available to lower taxable income. For personalized assistance, consult a tax specialist or official sources.
