New income tax slabs and tax rates under the revised tax regime

Under the new tax regime for the FY 2023-24(AY 2024-25), the income tax slabs, as well as the rates, have been revised; let’s have a look at them.

• Up to ₹3,00,000: No tax
• ₹3,00,001 to ₹6,00,000: 5% tax
• ₹6,00,001 to ₹9,00,000: 10% tax
• ₹9,00,001 to ₹12,00,000: 15% tax
• ₹12,00,001 to ₹15,00,000: 20% tax
• ₹15,00,001 and above: 30% tax

Surcharge rate under the revised new tax regime

The rate of surcharge has been reduced from 37% to 25% for those who opt for the new tax regime and earn more than Rs. 5 crores. Therefore, the only people who will be affected by this increase in rates are those who choose to accept the new tax system and earn more than Rs. 5 crores in a year.

The concept of "5% on 3-6 Lakh, 10% on 6-9 Lakh, But No Tax on Income up to 7 Lakh" under new tax slabs

A tax rebate is similar to a reduction in your tax liability. But the catch is that this discount is only for residents or those who live in the country.

Tax slabs are the same set of parameters that all taxpayers, individuals, families, and businesses use to determine their tax liability. Whether or not you live in the country, these slabs determine how much tax you have to pay based on your income.

Hence, the first step in calculating your taxes is to determine how much taxes you owe by looking at these slab rates. The discount can then be deducted from that amount if you are an individual resident. This tax deduction reduces your final tax liability, even sometimes down to zero. However, you should note that this is only for resident individuals.

Deductions under the new tax regime

• If you're a salaried person, you can get a standard deduction of up to Rs 50,000.
• In addition, if you receive a pension, you can also get a standard deduction. It's either Rs 15,000 or one-third of your pension amount, whichever is less.
• If you have a home loan, you can deduct the interest you pay on the loan under section 24b. This applies if you've rented out the property.
• If your employer contributes to your NPS (National Pension Scheme), that contribution can also be deducted from your taxable income.
• Any contributions you make towards the Agniveer Corpus Fund, covered under section 80CCH, can also be deducted.