What are the revised Latest Income Tax Slab Rates for FY 2023-24 after Budget 2023? During the Budget 2023, Finance Minster revised the income tax slab rates applicable for individuals. In this post, let us look into the revised rates.
The difference between Gross Income and Total Income or Taxable Income?
Before jumping into what are the Latest Income Tax Slab Rates for FY 2022-23 / AY 2023-24 after Budget 2022? Are there any changes to applicable tax rates for individuals? Let us see the details., first, understand the difference between Gross Income and Total Income.
Many of us have the confusion of understanding what is Gross Income and what is Total Income or Taxable Income. Also, we calculate the income tax on Gross Income. This is completely wrong. The income tax will be chargeable on Total Income. Hence, it is very much important to understand the difference.
Gross Total Income means total income under the heads of Salaries, Income from house property, Profits and gains of business or profession, Capital Gains or income from other sources before making any deductions under Sections.80C to 80U.
Total Income or Taxable Income means Gross Total Income reduced by the amount of permissible as deductions under Sec.80C to 80U.
Therefore your Total Income or Taxable Income will always be less than the Gross Total Income.
Revised Latest Income Tax Slab Rates FY 2023-24
There will be two types of tax slabs.
- For those who wish to claim IT Deductions and Exemptions.
- For those who DO NOT wish to claim IT Deductions and Exemptions.
Earlier, under the new tax regime, there were six income tax slab rates used to be there. This is now reduced to five income tax slab rates.
Do remember that the changes in income tax slab rates are applicable only to the new tax regimes. There is no change in old tax regime.
Also, earlier the standard deduction available for the salaried class and the pensioners including family pensioners is available only for the old tax regime. This is now available under the new tax regime also.
One more important announcement during the budget 2023 is that the new tax regime is a default tax regime. If you wish to adopt the old tax regime, then you have to select it.
Also, earlier, the rebate under Sec.87A was up to Rs.5 lakh. This is now enhanced to Rs.7 Lakh. Hence, if your income is below Rs.7 lakh and opting for a new tax regime, then you no need to pay the tax.
Let me now share with you the revised Latest Income Tax Slab Rates FY 2023-24.
I hope this information will be helpful to you. I have written the latest posts on Budget 2023 also. You can refer to the same at “Budget 2023 – 12 Key highlights impacting personal finance” and “Section 87A – How is income up to seven lakhs tax-free?“.