Income Tax Slabs 2023-24 live updates: New income tax rates, new income tax regime, exemption limit in focus
Income tax table 2023-24:
Tax experts suggest that the income tax tables for 2023-24 should be revised, especially at the Rs 10 lakh income level where a 30% tax table applies. Most personal tax experts say that income tax tables should be redone so that the 30% income tax rate is applied to income levels above Rs 20 lakh. The current income tax tables under the ordinary income tax regime are:
- Earn up to Rs 2,50,000 – Tax rate NIL
- Rs 2,50.001 – Rs 5,00.000 Income – 5% Tax Rate
- Income 5,00,001 Rs – 10,00,000 Rs – tax rate 20%
- Income over Rs 1,000,000 – 30% tax rate
Income Tax Table 2023-24: Recommendation
- Earn up to Rs 2,50,000 – Tax rate NIL
- Rs 2,50.001 – Rs 5,00.000 Income – 5% Tax Rate
- Rs 5,00,001 – Income Rs 20,00,000 – Tax rate 20%
- Income over Rs 20,000,000 – 30% tax rate
New income tax regime: Tables and rates
Two years ago, a new income tax regime or an alternative preferential tax regime was introduced. Reports suggest that the new income tax regime with lower income tax rates has not been chosen by too many taxpayers.
EY believes that in order for the new income tax regime to be better for individual taxpayers, the following changes should be made:
first. New income tax table 2023-24 for the new recommended income tax regime
Income tax table 2023-24 for new income tax regime: Recommendation
- Earn up to Rs 500,000 – Tax rate NIL
- Earnings Rs 5,00,001 – Rs 7,50,000 – Tax rate of 7.5%
- Rs 7,50,0001 – Income Rs 10,00.000 – Tax rate of 12.5%
- Rs 10.00,001 – Rs 12,50,000 income – tax rate 17.5%
- Rs 12,50,001 – Income Rs 15,00.000 – Tax rate of 22.5%
- Income Rs 15,00,001 – Rs 2,000,000 – Tax rate of 27.5%
- Income over Rs 20,000,000 – 30% tax rate
2. Standard deduction of Rs 50,000 is allowed
3. Provide benefits of section 80C/CCC/CCD/D
Rumor is that FM Sitharaman may announce some changes in this new income tax regime today. The new income tax regime for 2023-24 could increase the basic tax exemption limit from Rs 2,500,000 to Rs 50,000. There are also expectations that the income tax rates under this new regime could be rationalized.
Standard & Section 80C deduction
Experts have recommended that the standard deduction limit should be increased from the current Rs 50,000 to Rs 1 lakh. In addition, they argue that the standard deduction should be introduced in the new income tax regime. Experts say the limit of Section 80C should be increased from Rs 1.5 lakh to Rs 2.5 lakh to match inflation.