New and Old tax Regime slab: Many changes have been announced in the new tax regime to make it attractive for the individuals in the Budget 2023. The income tax slabs under the new tax regime has been reduced to five in FY 2023-24 from six. The basic exemption limit has been hiked to Rs.3 lakh from Rs.2.5 earlier under the new income tax regime. The amount of rebate under Section 87A has been enhanced under the new tax regime to taxable income of Rs 7 lakh. The tax rebate was available for taxable income up to Rs 5 lakh in new tax regime till FY 2022-23.
Thus, individuals opting for the new income tax regime in FY 2023-24 and having an income up to Rs.7 lakh will not pay any taxes. Standard deduction benefit has been introduced in new tax regime for salaried and pensioners (including family pensioners)
Further, the new income tax regime becomes the default tax regime. However, the individuals will have an option to continue with the old income tax regime. Individual planning to opt for old tax regime in FY 2023-24 will be specifically required to opt for it. The government has reduced the surcharge of the highest rate from 37% to 25% in new tax regime.
Read Also: Old vs new tax regime – How much tax you need to pay on your income
New Income Slabs for New Tax Regime, applicable from FY 2023-24
| Income Range | Income Tax Rates |
| 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 |
Read Also: Which tax regime is better old or new? Check examples income wise
Slab rates of the New and Old tax Regime slab for FY 2022-23
| Income Tax Slab | Resident Individuals & HUF < 60 years of age & NRIs | Resident Individuals & HUF > 60 to < 80 years | Resident Individuals & HUF > 80 years | Applicable for All Individuals & HUF |
| 0 – Rs 2,50,000 | NIL | NIL | NIL | NIL |
| Rs 2,50,000 – 3,00,000 | 5% (Tax rebate u/s 87a is available) | NIL | NIL | 5% (Tax rebate u/s 87a is available) 5% (Tax rebate u/s 87a is available) |
| Rs 3,00,000 – Rs 5,00,000 | 5% (Tax rebate u/s 87a is available) | 5% (Tax rebate u/s 87a is available) | NIL | |
| Rs 5,00,000 – Rs 7,50,000 | 20% | 20% | 20% | 10% |
| Rs 7,50,000 – Rs 10,00,000 lakh | 20% | 20% | 20% | 15% |
| Rs 10,00,000 – Rs 12,50,000 | 30% | 30% | 30% | 20% |
| Rs 12,50,000 – Rs 15,00,000 | 30% | 30% | 30% | 25% |
| Above Rs 15 Lakh | 30% | 30% | 30% | 30% |
Read Also: Important points to decide between New Income Tax Rate and Old Tax Rate regime
New Tax regime rates FY 2022-23 (AY 2023-24) vs FY 2023-24 (AY 2024-25)
| Slab | New Tax Regime Before Budget 2023 (until 31st March 2023) | New Tax Regime After Budget 2023 (From 1st April 2023) |
| Rs 0 – Rs 2,50,000 | – | – |
| Rs 2,50,000 – Rs 3,00,000 | 5% | – |
| Rs 3,00,000 – Rs 5,00,000 | 5% | 5% |
| Rs 5,00,000 – Rs 6,00,000 | 10% | 5% |
| Rs 6,00,000 – Rs 7,50,000 | 10% | 10% |
| Rs 7,50,000 – Rs 9,00,000 | 15% | 10% |
| Rs 9,00,000 – Rs 10,00,000 | 15% | 15% |
| Rs 10,00,000 – Rs 12,00,000 | 20% | 15% |
| Rs 12,00,000 – Rs 12,50,000 | 20% | 20% |
| Rs 12,50,000 – Rs 15,00,000 | 25% | 20% |
| Above Rs 15,00,000 | 30% | 30% |
In all the above cases, Cess will be levied at rate of 4% on income tax amount. Surcharges will be levied on incomes above Rs 50 lakh. There is no revision of Income Tax slab rates in case of old tax regime.
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