Taxmann Union Budget | Income Tax Slab Rates for FY 2023-24
Dear Readers,
Today's Newsletter is about the latest changes in Income Tax Slab Rates for FY 2023-24. Here's a concise overview to help you plan your finances.
In her budget speech, the Finance Minister proposed more incentives in the new tax regime so that the taxpayer can unhesitatingly move from the old to the new tax regime. The new tax regime covered under section 115BAC shall be the default tax regime, and AOP, BOI and Artificial Juridical Persons also can now avail the benefit of the new tax regime. The taxpayer still has the option to choose the old tax regime if desired, as no alterations have been made to it. The table below compares the tax rates for reference.?
1. Tax Rates
1.1 Slab Rates for Individual or HUF Opting for Old Tax Regime*
1.2 Slab Rates for Individuals or HUF under New Tax Regime, aka Default Tax Regime (Section 115BAC)
# Rebate under section 87A is available to resident individuals whose total income during the previous year does not exceed Rs. 5,00,000. Rebate is available to the extent of Rs. 12,500 only, and no rebate will be available if the total income exceeds Rs. 5,00,000.
## Rebate under section 87A is available to resident individuals whose total income during the previous year does not exceed Rs. 7,00,000. Rebate is available to the extent of Rs. 25,000 only, and no rebate will be available if the total income exceeds Rs. 7,00,000.
1.3 Tax rates for AOP/BOI Opting for Old Tax Regime
1.4 Tax rates for AOP/BOI under New Tax Regime, aka Default Tax Regime (Section 115BAC) (applicable from Assessment Year 2024-25)
1.5 Tax rates for Company
1.6 Tax rates for Co-operative Society
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*With effect from AY 2024-25, a new section is proposed for new manufacturing co-operative societies set up on or after 01.04.2023, commencing manufacturing or production on or before 31.03.2024. They can pay tax at a concessional rate of 15% with a trade-off with specific incentives and deductions.
1.7 Tax rates for Other Entities
2. Rates of Surcharge
2.1 Rate of Surcharge in the hands of the Individual, HUF, AOP (Except AOP with all members as company), BOI or AJP
*From A.Y. 2024-25 onwards, the surcharge rates on other income for Individuals, HUFs, AOP, BOI or Artificial Juridical Persons opting to pay tax under section 115BAC cannot exceed 25%.
**From A.Y. 2023-24 onwards, the surcharge rates for AOP with all members as a company, cannot exceed 15%.?
2.2 Rate of Surcharge in case of any other assessee
*Health and Education Cess at the rate of 4% shall be charged on the aggregate of income-tax and surcharge.
That’s it from us for today! Stay Tuned for more updates from?Taxmann.com.
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