Tax rates for FY 2023-24

The tax slabs under the old regime and new regime applicable for individuals are as under:

Proposed changes to the simplified tax regime

• Basic exemption limit to be increased from INR 2.5 Lakhs to INR 3 Lakhs.

• The simplified tax regime will be the default tax regime. However, assessee to opt between old tax regime and simplified tax regime before filing the original tax return for the previous year.

• Maximum surcharge proposed to be capped at 25% (from earlier 37%). This will result in lowering the highest marginal tax rate from 42.74% to 39%.

• Rebate under 87A applicable for taxable income up to INR 7 lakhs (from earlier INR 5 lakhs)

• Standard deduction of INR 50,000 for salary income and up to INR 15,000 for family pension are proposed to be allowed No change in tax rates under the old tax regime

Individuals availing deduction of INR ~4L will find old regime beneficial if income level is up to INR 5 crores