Old Tax Regime and Proposed Tax rates under New Regime
Check out the Comparison between “Income tax under the Old Tax Regime and Tax rates proposed under the Union Budget 2023-24 for New Tax Regime”
Extract From Memorandum:
Under the Union Budget 2023-24, it is proposed that, with effect from assessment year 2024-25, the following rates provided under the proposed sub-section (1A) of section 115BAC of the Act shall be the rates applicable for determining the income-tax payable in respect of the total income of a person, being an individual or Hindu undivided family or association of persons [other than a cooperative society], or body of individuals, whether incorporated or not, or an artificial juridical person referred to in sub-clause (vii) of clause (31) of section 2:
The above-mentioned rates shall apply to all individual or Hindu undivided family or association of persons [other than a co-operative society], or body of individuals, whether incorporated or not, or an artificial juridical person referred to in sub-clause (vii) of clause (31) of section 2, unless an option is exercised under proposed sub-section (6) of section 115BAC.
Calculation of Income Tax
- Under Old Tax Regime
| Income Slab | Rate | Tax |
| Up To Rs. 2.5 Lakhs | Nil | Nil |
| Rs. 2.5 Lakhs – Rs. 5 Lakhs | 5% | 12,500.00 |
| Rs. 5 Lakhs – Rs. 10 Lakhs | 20% | 1,00,000.00 |
| Above Rs. 10 Lakhs* | 30% | 1,50,000.00 |
| Total Tax up to Rs. 15 Lakhs | 2,62,500.00 |
- Under New Tax Regime Before Budget 2023-24
| Income Slab | Rate | Tax |
| Up To Rs. 2.5 Lakhs | Nil | Nil |
| Rs. 2.5 Lakhs – Rs. 5 Lakhs | 5 | 12,500.00 |
| Rs. 5 Lakhs – Rs. 7.5 Lakhs | 10 | 25,000.00 |
| Rs. 7.5 Lakhs – Rs. 10 Lakhs | 15 | 37,500.00 |
| Rs. 10 Lakhs – Rs. 12.5 Lakhs | 20 | 50,000.00 |
| Rs. 12.5 Lakhs – Rs. 15 Lakhs | 25 | 62,500.00 |
| Total Tax up to Rs. 15 Lakhs | 1,87,500.00 |
- Under New Tax Regime (Proposed under Budget 2023-24)
| Income Slab | Rate | Tax |
| Up To Rs. 3 Lakhs | Nil | Nil |
| Rs. 3 Lakhs – Rs. 6 Lakhs | 5 | 15,000.00 |
| Rs. 6 Lakhs – Rs. 9 Lakhs | 10 | 30,000.00 |
| Rs. 9 Lakhs – Rs. 12 Lakhs | 15 | 45,000.00 |
| Rs. 12 Lakhs – Rs. 15 Lakhs | 20 | 60,000.00 |
| Total Tax up to Rs. 15 Lakhs | 1,50,000.00 |
IMPORTANT POINT:
TAX UNDER THE OLD TAX REGIME IS CALCULATED WITHOUT TAKING INTO ACCOUNT THE AVAILABLE DEDUCTIONS & EXEMPTIONS.
PROPOSED NEW TAX REGIME RATES REDUCED THE TAX BURDEN.
DIFFERENCE OF TAX BETWEEN OLD TAX REGIME AND PROPOSED TAX REGIME RATE WOULD BE RS. 1,12,500/- BUT DON’T BITE THE BAIT, SPECIALLY ASSESSEE HAVING INCOME FROM PGBP**, CHOOSE WISELY, CHOOSE AFTER CONSULTING THE TAX PROFESSIONALS.
**A person having income from business or profession who has exercised the above option of shifting out of the regime provided under the proposed sub-section (1A) of section 115BAC shall be able to exercise the option of opting back to the regime under proposed subsection (1A) of section 115BAC only once. However, a person not having income from business or profession shall be able to exercise this option every year.
Read More on Union Budget 2023-24
