Income Tax slab rates under Union Budget 2023
PERSONAL TAXES
- New Income Tax Slabs as per Union Budget 2023:
|
Income Tax Slab |
Income Tax Rates Applicable for FY 2023-24 as per the new regime for HUF and all Individuals |
| <₹ 3,00,000 | No Tax |
| ₹ 3,00,001 to ₹ 6,00,000 | 5% |
| ₹ 6,00,001 to ₹ 9,00,000 | 10% |
| ₹ 9,00,001 to ₹ 12,00,000 | 15% |
| ₹ 12,00,001 to ₹ 15,00,000 | 20% |
| >₹ 15,00,000 | 30% |
- NOTES:
- The tax rates in the new tax regime remain the same across all categories, i.e. the Hindu Undivided Family and individuals up to 60 years of age, senior citizens above 60 years to 80 years of age, and super senior citizens above 80 years. Therefore, no increase of the basic exemption limit will benefit the senior and the super senior citizens in the new tax regime.
- Individuals with a net taxable income of up to ₹ 7 lakh will be eligible for tax rebate u/s 87A under the new tax regime. The rebate limit remains at ₹ 5 lakh for individuals who choose to pay tax under the old regime.
- Income tax slab rate for Old Tax Regime FY 2023-24:
Income Tax Slabs for Individuals below 60 years and HUF:
| Income Tax Slab | Tax Rates |
| <₹ 2,50,000 | NIL |
| ₹ 2,50,001 to ₹ 5,00,000 | 5% |
| ₹ 5,00,001 to ₹ 10,00,000 | 20% |
| >₹ 10,00,000 | 30% |
NOTES:
- The exemption limit of income tax is up to ₹ 2.5 lakh for all individuals, HUF and individuals below 60 years and NRIs for FY 2023-24.
- An additional 4% health and education cess is applicable on the tax amount.
Income Tax Slabs for Individuals aged between 60 years and 80 years :
| Income Tax Slab | Tax Rates |
| <₹ 3,00,000 | NIL |
| ₹ 3,00,001 to ₹ 5,00,000 | 5% |
| ₹ 5,00,001 to ₹ 10,00,000 | 20% |
| >₹ 10,00,000 | 30% |
NOTES:
- The exemption limit on income tax is up to ₹3 lakh for senior citizens for FY 2023-24.
- An additional 4% health and education cess is applicable on the tax amount.
Income Tax Slabs for Individuals above 80 years:
| Income Tax Slab | Tax Rates |
| <₹ 5,00,000 | NIL |
| ₹ 5,00,001 to ₹ 10,00,000 | 20% |
| >₹ 10,00,000 | 30% |
NOTES:
- The exemption limit on income tax is up to ₹5 lakh for super senior citizens for FY 2023-24.
- An additional 4% health and education cess is applicable on the tax amount.
- Surcharge for F.Y.2023-24:
Surcharge applicable as per tax rates are listed below across all categories mentioned above:
- 10% of Income Tax for income > ₹50 lakh
- 15% of Income Tax for income > ₹1 crore
- 25% of Income Tax for income > ₹2 crore
- 37%*of Income Tax for income > ₹5 crore
The enhanced surcharge of 25% & 37%, as the case may be, is not levied, from income chargeable to tax under sections 111A, 112A and 115AD. Hence, the maximum rate of surcharge on tax payable on such incomes shall be 15%.
The maximum rate of surcharge on tax payable on dividend income or capital gain referred to in Section 112, shall be 15%. The surcharge rate for an Association of Persons (AOP) with all members as a company, shall be capped at 15%.
It is to be noted that relevant marginal relief from surcharge is available.
Income Tax Rates applicable to Company for FY 2023-24 (AY 2024-25)
Domestic Company
Normal Income-tax rates applicable in case of domestic companies are as follows:
| Turnover Criteria | Tax Rate |
| Where its total turnover or gross receipt during the previous year 2021-22 does not exceed Rs. 400 crore | 25% |
| Any other domestic company | 30% |
Surcharge : The amount of income-tax shall be increased by a surcharge at the specified rate percentage of such tax:-
| Range of income | Rs 1 crore to 10 crore | Above 10 crores |
| Surcharge rate | 7% | 12% |
The surcharge shall be subject to marginal relief.
Health and Education Cess : The amount of income-tax and the applicable surcharge, shall be further increased by health and education cess calculated at the rate of 4 percent of such income-tax and surcharge.