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
