Tax Slabs in India for 2024: What You Should to Know

Last updated on June 20th, 2024 at 01:57 am

 If you are looking to save taxes and learn about the current Tax Slabs in India, I appreciate your curiosity. Unfortunately, most of the population is unaware about it and due to lack of education they are unable to manage their hard earned money.

AAMcourses is here to explain to you the taxation system of India. The taxable income in India is based on age and income level. So, Now Let’s see What are the income tax slabs for FY 2023-24?

What Are The Tax Slabs in India?

Depending on the age factor, tax exemptions are made. Depending on the income level, the taxable amount is decided. 

1. Individuals (Below 60 years)

The first tax slabs in India are for people of age below 60. People with income levels below Rs. 250,000 are exempted from taxes. The given table gives information about the tax rates for people below 60 :

2. Senior Citizens (aged 60 years and above but below 80 years)

The second tax slabs in India are for people about 60, senior citizens. People with an income level below Rs. 300,000 are exempted from taxes. The details are as follows :

Statutory Statements to be followed during taxing the income of an individual. These statements are regarding the taxes to be implied after the income tax. 

• If the income level is more than Rs. 5,000,000 to Rs. 10,000,000, then surcharges are to be applicable of 10% on the applied income tax. Surcharges are the tax that is imposed on the income tax. 
   Example : If a person pays a tax on Rs.10,000,000, i.e. Rs. 2,825,000. Then surcharges are applicable on Rs. 2,825,000, which would be Rs.282,500. Therefore, the total taxable amount would be Rs.3,107,500.
• If the income level is more than Rs. 10,000,000 to Rs. 20,000,000, then surcharges are to be applicable of 15% on the applied income tax.  
• If the income is more than Rs. 20,000,000 to Rs. 50,000,000, then surcharges are to be applicable of 20% on the applied income tax.
• For income more than Rs. 50,000,000, the surcharges of 37% are applicable on the applied income tax. 
• Health and education charge of 4% is applicable on the income tax and the surcharges.
• Individuals with income less than 500,000 are eligible to get full tax exemption under section 87 A

Besides the income tax slabs in India for an individual, there are different tax slab in India for different entities. Let’s study them below one by one :

4. Partnership Firm or Limited Liability Partnership Tax Slabs in India :

• Partnership firms or Limited liability partnership is taxable by 30% 
• Suppose the income of the partnership firm/ limited liability partnership exceeds Rs.10,000,000, surcharges become applicable on the income. The surcharges of 12% are applicable. However, surcharges shall be subject to marginal relief.
• The Health and education charge of 4% applies to the income tax and the surcharges.

 5. Local Authority Tax Slabs in India :

• The local authority in India is taxable by 30%
• If the income of the local authority exceeds more than Rs.10,000,000, surcharges are applicable. The surcharge applicable for this income level is 12% of the income tax. 
   However, surcharges are subjected to marginal relief.
• The Health and education charge of 4% applies to the income tax and the surcharges.

6. Tax Slabs in India for Domestic Company :

As the table give you an idea, for a company having a turnover of less than 400 crore rupees, 25% is the tax rate. A company having a turnover of more than 400 crores has a tax rate of 30%.

•  For the income range of Rs., 1 crore to Rs.10 Crore surcharges will be applicable. The surcharges applied for this income level will be 7% of the income tax.
   However, surcharges shall be subject to marginal relief.
•  For the income range of Rs. 10 crores or more, 12% surcharges will be applicable. 
   However, surcharges are subjected to marginal relief.
•  The Health and education charge of 4% applies to the income tax and the surcharges.
•  If the company has opted for section 115 BAA and Section 115 BAB, 10% surcharges will be applicable.

7. Tax Slabs in India for a Foreign Companies :

• Foreign countries are taxable by 40%
• Royalty received by the government or fees for rendering technical services the tax rate is 50%.
• For income levels of Rs. 1 Crore – Rs. 10 Crore, surcharges are applicable. The surcharge applicable is 2%.
• For income above Rs. 10 crores, 5% surcharges are applicable on the income tax. 
   However, surcharges are subjected to marginal relief.
• The Health and education charge of 4% applies to the income tax and the surcharges.

8. Tax Slabs in India for Co-Operative Society:

• For income up to Rs. 10,000, The tax rates applicable will be 10%. 
• For income levels of Rs. 10,000 – Rs. 20,000, the tax rates applicable will be 20%.
• For an income level above Rs. 20,000, the tax rates applicable will be 30%.

•  Surcharges of 12% are applicable if they exceed Rs. 1 crore.
   However, surcharges are subjected to marginal relief.
•  The Health and education charge of 4% applies to the income tax and the surcharges.

The New Tax Regime for 2024

The government of India has released a new tax regime with different tax slabs and lower tax rates but with various exemptions and deductions available in the old regime. Taxpayers are free to select either the old tax regime with exemptions and deductions or the new tax regime without exemptions.

The new tax slabs in India for individuals below 60 years for 2024 are as follows:

• Income up to ₹2,50,000: No tax
• Income from ₹2,50,001 to ₹5,00,000: 5%
• Income from ₹5,00,001 to ₹7,50,000: 10%
• Income from ₹7,50,001 to ₹10,00,000: 15%
• Income from ₹10,00,001 to ₹12,50,000: 20%
• Income from ₹12,50,001 to ₹15,00,000: 25%
• Income above ₹15,00,000: 30%

Choosing Between the Old and New Tax Slabs in India for 2024

It’s crucial for taxpayers to take a responsible approach and carefully evaluate their financial situation, including eligible deductions and exemptions, to choose the most beneficial tax regime.

For instance, if a taxpayer claims significant deductions under Section 80C, 80D, and housing loan interest, the old regime might be more advantageous. Conversely, if the deductions are minimal, the new regime with lower tax rates could result in lower tax liability.

Important Things to Consider for Taxpayers

1. Deductions and Exemptions

Under the old tax slabs in India, taxpayers can claim deductions such as those under Section 80C (investments in PPF, EPF, LIC, etc.), Section 80D (medical insurance), and home loan interest, among others.

2. Advance Tax Payments

Taxpayers whose total tax liability exceeds ₹10,000 in a financial year must pay advance tax in installments throughout the year to avoid interest penalties.

3. Filing Income Tax Returns (ITR)

Make sure to file ITR on time to avoid penalties and to ensure compliance with tax laws. The due date for filing ITR for individuals is usually July 31st of the assessment year unless extended by the government.

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Final Statement

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