Slab rate- Under Old tax and New tax regime 115BAC

15/11/2023 0 By indiafreenotes

Old Tax Regime:

Under the old tax regime, individual taxpayers are eligible for various deductions and exemptions, including those under sections like 80C (for investments), 80D (for health insurance premiums), and others.

New Tax Regime (Section 115BAC):

The new tax regime introduced under Section 115BAC provides lower income tax rates but eliminates most deductions and exemptions.

Exemptions and Deductions Not Applicable Under The New Tax Regime Some of the major tax exemptions and deductions that are not applicable under the new tax regime or Section 115BAC is: 

  • Deductions under Section 80C, 80D, and 80E, except Section 80CCD(2) and Section 80JJAA
  • Deduction on interest income under Section 80TTA/80TTB
  • Professional tax and entertainment allowance
  • Leave Travel Allowance
  • House Rent Allowance
  • Interest on housing loans under Section 24
  • Employee’s contribution to NPS
  • Donation to a political party/trust

Income Slab

Old Tax Regime Rates

New Tax Regime (Section 115BAC) Rates

Up to ₹2,50,000 Nil Nil
₹2,50,001 to ₹5,00,000 5% 5%
₹5,00,001 to ₹7,50,000 20% 10%
₹7,50,001 to ₹10,00,000 20% 15%
₹10,00,001 to ₹12,50,000 30% 20%
₹12,50,001 to ₹15,00,000 30% 25%
Above ₹15,00,000 30% 30%

Income Slabs

New Tax Regime       
FY 2022-23 (AY 2023-24)

₹0 – ₹2,50,000
₹2,50,000 – ₹5,00,000 5%        
(tax rebate u/s 87A is available)
₹5,00,000 – ₹7,50,000 10%
₹7,50,000 – ₹10,00,000 15%
₹10,00,000 – ₹12,50,000 20%
₹12,50,000 – ₹15,00,000 25%
>₹15,00,000 30%

Slabs

Old Tax Regime

New Tax Regime

< 60 years of age & NRIs

> 60 to < 80 years > 80 years FY 2022-23

FY 2023-24

₹0 – ₹2,50,000 NIL NIL NIL NIL NIL
₹2,50,000 – ₹3,00,000 5% NIL NIL 5% NIL
₹3,00,000 – ₹5,00,000 5% 5% (tax rebate u/s 87A is available) NIL 5% 5%
₹5,00,000 – ₹6,00,000 20% 20% 20% 10% 5%
₹6,00,000 – ₹7,50,000 20% 20% 20% 10% 10%
₹7,50,000 – ₹9,00,000 20% 20% 20% 15% 10%
₹9,00,000 – ₹10,00,000 20% 20% 20% 15% 15%
₹10,00,000 – ₹12,00,000 30% 30% 30% 20% 15%
₹12,00,000 – ₹12,50,000 30% 30% 30% 20% 20%
₹12,50,000 – ₹15,00,000 30% 30% 30% 25% 20%
>₹15,00,000 30% 30% 30% 30% 30%

Important Points to Note:

  • Taxpayers can choose between the old and new tax regimes based on their individual financial situations and the benefits derived from exemptions and deductions.
  • The new regime is beneficial for those who prefer a simplified tax structure and can forgo certain exemptions.
  • The choice between the old and new regimes is made on a yearly basis while filing income tax returns.

Please note that tax laws are subject to change, and it’s essential to refer to the latest finance acts, notifications, and circulars or consult with a tax professional for the most up-to-date information.