As a taxpayer in India, you can choose the tax regime. There are two options. Old Tax Regime and New Tax Regime. Both these tax regimes have their own unique benefits. Thus, it is important for you to understand Income Tax Slabs FY 2023-24 & AY 2024-25 before doing ITR Filing.
Old Regime Tax Rates for FY 2023-24 (AY 2024-25)
Under the old tax regime, taxpayers can benefit from various exemptions and deductions. It includes HRA, LTA, standard deduction, and deductions under Section 80C, 80D, etc.
The income tax slabs for FY 2023-24 (AY 2024-25) as per Old Regime are as follows:
| Income Range (₹) | Tax Rate (%) |
| Up to ₹2.5 lakh | Nil |
| ₹2.5 lakh – ₹5 lakh | 5% |
| ₹5 lakh – ₹10 lakh | 20% |
| Above ₹10 lakh | 30% |
Note: Rebate under Section 87A is available for individuals with a net taxable income up to ₹5 lakh, making their tax liability nil.
New Regime Tax Rates for FY 2023-24 (AY 2024-25)
The new tax regime offers lower tax rates. However, it does not allow most exemptions and deductions. Thus, the new regime is suitable for taxpayers who do not have significant investments or expenditures that qualify for deductions.
| Income Range (₹) | Tax Rate (%) |
| Up to ₹2.5 lakh | Nil |
| ₹2.5 lakh – ₹5 lakh | 5% |
| ₹5 lakh – ₹7.5 lakh | 10% |
| ₹7.5 lakh – ₹10 lakh | 15% |
| ₹10 lakh – ₹12.5 lakh | 20% |
| ₹12.5 lakh – ₹15 lakh | 25% |
| Above ₹15 lakh | 30% |
Key Points to Consider When Choosing Between the Old and New Regimes
Income Level and Composition
If you earn a higher income and you can also use multiple exemptions and deductions, the old tax regime might save you more money.
Simplicity and Convenience
The new tax regime is simpler with no need to track various exemptions and deductions. Thus, it is more suitable for those who prefer straightforward finances.
Future Financial Planning
If you plan to invest in instruments eligible for tax deductions, you will be able to claim deductions under the old tax regime.
Conclusion
In short, the old regime and tax regime offer advantages to taxpayers. However, the advantages depend on the type of taxpayers. If you need any assistance regarding ITR Filing or wish to really benefit from any tax regime as per your circumstances, it’s best to consult our taxation experts. You can consult our experts for free and get all your doubts resolved. Call now at: 8881-069-069.
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