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Income Tax rates for Individual Taxpayers for Financial year 2023-24; Assessment year 2024-25

Individuals and HUF:  New Tax regime and Old Tax Regime Income Tax Rates

 

New Regime Income Tax Rates

Annual Income in Rs. Lakhs

Tax Rates

(New Regime)
Up to 3 Nil
3-6 5%
6-9 10%
9-12 15%
12-15 20%
Above 15 30%

 

The new tax regime does not have age wise category like senior citizens, super senior citizens. The tax rates are uniform across all categories of tax payers viz individuals, senior citizens, super senior citizens

Old Regime Income Tax Rates

Annual Income in Rs. Lakhs

Tax Rates

(Old Regime)
Up to 2.5 Nil
2.5-5 5%
5-10 20%
Above 10 35%

 

#For senior citizens (Age between 60-80 Yrs.) – No tax up to Rs.3 Lakhs in old Regime

#For Super Senior Citizens (Age 80+) – No tax up to Rs.5 lakhs in old Regime

New Tax Regime or Old Tax Regime, which is default?

From the financial year 2023-24, the New Tax regime is the default tax regime for all taxpayers. In case, you want to claim deductions/ exemptions, the taxpayer has to specifically opt out of New Tax Regime and opt for the Old Tax regime.

 Rebate under New and Old Tax Regimes

Old Tax Regime: Total income less than Rs.5 Lakhs , then Rebate of Rs.12500 or actual tax is allowed as rebate under section 87A

New Tax Regime: Total income less than Rs.7 lakhs, then rebate of Rs.25,000 or actual tax is allowed as rebate under section 87A

Comparison of deductions and exemptions allowed under New Regime Vs. Old Regime

Features Benefit under Old regime Old Regime New Regime
Standard deduction of Rs.50,000/- for salaried employees Rs.50,000/- Yes Yes
Profession Tax on salary Income Actuals Yes No
House rent allowance under section 10(13A)

Minimum of

a.       Actual HRA received

b.       50% of basic salary (40% in case of non-metro)

c.       Rent paid minus 10% of basic salary

 Yes No
Leave Travel concession [Section 10(5)]

Minimum of

a.       Leave travel expenses incurred

b.       Actual LTA component in the CTC

 Yes No
Official and personal allowances (other than those as may be prescribed) [Section 10(14)] Actual expenses incurred Yes No
Allowances to MPs/MLAs [Section 10(17)] Actaul allowances Yes No
Entertainment Allowance [Section 16((ii)]

For Government employees only

Minimum of

a.       Deduction of Rs.5000/-

b.       20% of gross salary

c.       Actual entertainment allowance received

 

 Yes No
Interest on housing loan for self-occupied house property [Section 24(b)] Minimum of Actual interest or Rs. 2lakhs Yes No
Set-off of any loss under the head “Income from house property” with any other head of income – Yes No
Carry forward of House property loss for up to 8 assessment years – Yes No
Exemptions or deductions for allowances or perquisites provided under any other law for the time being in force – Yes No
       
Other deductions      
Investments under 80C      
 Payment for life insurance premium

 

 

 

 

 

 

 

Up to 1,50,000

(Subject to overall limit of Rs. 1,50,000 under Section 80C, 80CCC and 80CCD (1))

 Yes No
Sum paid under a contract for a deferred annuity Yes No
Contributions to the Employees’ or Recognised Provident Fund Yes No
Contribution to Public Provident Fund Account Yes No
Contribution to an approved superannuation fund Yes No
Subscription to any notified security or notified deposit scheme (Sukanya Samriddhi Account Scheme) Yes No
Subscription to notified savings certificates Yes No
Contribution to notified unit-linked insurance plan Yes No
Tuition fees for the full-time education of any 2 children Yes No
Certain payments for the purchase/construction of residential house property Yes No
Notified annuity plan of LIC or other insurers Yes No
Investment in Equity Linked Saving Scheme Yes No
Term deposits for a fixed period of not less than 5 years with a scheduled bank Yes No
Deposit in Senior Citizen Savings Scheme Yes No
 Contribution to Tier-II NPS account by central government’s employees. Yes No
       
       

Deduction under 80CCC

 

Contribution to certain specified Pension Funds of LIC/other insurers

(Subject to certain conditions)

Up to 1,50,000

(Subject to overall limit of Rs. 1,50,000 under Section 80C, 80CCC and 80CCD)

 Yes No

Deduction under 80CCD

 

Contribution to New Pension Scheme (NPS) as notified by the Central Government (Subject to certain conditions).

Actual contribution amount or 10% of salary/ gross total income. [80CCD (1)]

 

(Subject to overall maximum limit of Rs.1,50,000/-)

 

Additional deduction of Rs,.50,000/-Under section 80CCD(1B).

 

The additional deduction is not subject to a ceiling limit of Rs. 1,50,000/-

 

Yes

 

Yes

Contribution to Agniveer corpus fund-80CCH

 

Amount paid/deposited in Agniveer Corpus Fund by the assesses and contribution made by Central Government to such fund.

 Whole of the amount paid/deposited Yes Yes

Medical insurance premium paid under 80D

 

Amount paid (in any mode other than cash) to LIC or other insurers to effect health insurance of a specified person (self, spouse, dependent children or parents).

 

An individual can also make payment to the Central Government health scheme and/or on account of preventive health check-up

 

Maximum amount allowed as deduction for preventive health check-up is Rs.5,000/- (Payment allowed in cash also)

 

Medical expenditure of Rs.50,000 with in the overall Limit is allowed for treatment of resident senior citizen.

(The said person should not have been covered under any insurance to claim this amount)

 

 

Medical insurance

For self and family – up to Rs.25,000/-

For Parents additional deduction –up to Rs.25,000/-

 

 

Medical expenses

For Resident senior citizen- up to Rs.50,000/-

 

For Parents -Resident Senior citizen up to Rs.50,000/-

 

Preventive health checkup

 

Up to Rs.5,000/-

 Yes No

Medical treatment for persons with disability- 80DD

 

Any expenditure incurred for the medical treatment (including nursing), training, and rehabilitation of a dependent, being a person with disability (b) Any amount paid or deposited under an approved scheme framed in this behalf by the LIC or any other insurer or the Administrator or the specified company for the maintenance of a dependent, being a person with disability

 

Dependent of individual means the spouse, children, parents, brothers and sisters of the individual or any of them.

 

Rs. 75,000 (Rs. 1,25,000 in case of severe disability)

 Yes No

Medical treatment of specified diseases 80DDB

 

Expenses actually paid for medical treatment of specified diseases and ailments for the assesse himself or wholly dependent spouse, children, parents, brothers and sisters (Subject to certain conditions).

 Up to Rs. 40,000 (Rs. 100,000 in case of senior citizen) Yes No

Interest on Education Loan- 80E

 

Amount paid for interest to financial institution or approved charitable tax on education loan out of income chargeable to tax

 The amount of interest paid during the initial year and 7 immediately succeeding assessment years (or until the above interest is paid in full). Yes No

Interest of housing loan for loans sanctioned between 01st Apr 2016 and 31st March 2017- 80EE

 

Interest payable on loan taken by an individual from any financial institution for the purpose of acquisition of a residential house property subject to certain condition. (Maximum deduction 50,000)

 Rs.50,000 Yes No

Interest of housing loan for loans sanctioned between 01st Apr 2019 and 31st March 2022- 80EEA

 

 

Interest payable on a loan taken by an individual, who is not eligible to claim deduction under section 80EE, from any financial institution during the period beginning from 01-04-2019 ending on 31-03-2022 for the purpose of acquisition of a residential house property whose stamp duty value does not exceed Rs. 45 lakhs

 Rs.1,50,000/- Yes No

Interest paid toward Electric vehicle loan

 

Interest payable on a loan taken by an individual from any financial institution during the period 01-04-2019 ending on 31-03-2023

 Rs.1,50,000/- Yes No

Donations to specified institutions/ trusts- 80G

 

Deduction for donations made

 

 

 50% to 100% of donations made Yes No

Rent paid for furnished/ unfurnished residential accommodation-80GGA

 

 

Minimum of the following shall be allowed as deduction:

(a) Rent paid in excess of 10% of total income;

(b) 25% of the Total Income; or

(c) Rs. 5,000 per month

 Yes No

Donation for scientific research or rural development- 80GGA

 

100% of donation made

 

 Yes No

Donation to political party or an electoral trust

 

100% of donation made

 

 Yes No

Saving bank account interest income for individuals other than senior citizens– 80 TTA

 

Interest on deposits in savings bank account with bank, post office or co-operative society engaged in banking business

 Maximum of Rs.10000/- or actual income Yes No

Interest on deposits in bank account for Senior Citizens- 80TTB

 

Interest on deposits (Fixed deposits/ saving bank account deposit) in bank account, post office or co-operative society engaged in banking business

 

 Maximum of Rs.50,000/- or actual income Yes No

Deduction for disabilities – 80 U

 

Deduction for the assesses who has been certified by the medical authority as  a person with disability

 

General deduction – Rs. 75,000 /-

For severe disability – Rs.125,000/-

 Yes

No