Income Tax Rates and Slabs for the Year of Assessment 2023–2024: In the coming year, it is anticipated that the income tax rates and slabs that were in effect for AY 2022-23 will not change (AY 2023-24). The rates for various slabs may be revised in the approaching Budget 2023, but no significant changes are anticipated to be made by the Government. Following are the current income tax rate and slab, which are probably going to stay the same in 2023 as well.
Income Tax Slabs and Rates 2023 (New Regime)
- Annual income up to Rs 2.5 lakh: NIL
- Annual income up to Rs 2.5- 5 lakh: 5%
- Annual income up to Rs 5-7.5 lakh: 10%
- Annual income up to Rs 7.50-10 lakh: 15%
- Annual income up to Rs 10-12.5 lakh: 20%
- Annual income up to Rs 12.5-15 lakh: 25%
- Annual income up to Rs 15-20 lakh: 30%
- Annual income above Rs 20 lakh: 30%
Income Tax Slabs and Rates 2023 (Old Regime)
- Annual income up to Rs 2.5 lakh: NIL
- Annual income up to Rs 2.5- 5 lakh: 5%
- Annual income up to Rs 5-10 lakh: 20%
- Annual income up to Rs 10-20 lakh: 30%
- Annual income above Rs 20 lakh: 30%
Expected Income Tax Rates and Slabs in Budget 2023
Several tax experts and industry bodies have urged the Government to revise Income Tax Rate in certain slabs in order to provide relief to taxpayers.
Since FY 2017–18, the individual tax rate has not changed (the new tax regime was bought in FY2020-21). Therefore, the maximum tax rate of 30% should be lowered to 25%, and the threshold for the highest tax rate raised from INR 10 lakh to INR 20 lakh in order to give people greater purchasing power and some relief for the employed taxpayers. As a result, the highest slab rate proposed (with surcharge and cess) can be lowered to 35.62 percent, according to Tapti Ghose, Partner, Deloitte.
In Deloitte’s Budget expectation, Ghose has recommended the following Income Tax rates:
Income Tax Rates (Old Regime)
- Annual income up to Rs 2.5 lakh: NIL
- Annual income up to Rs 2.5- 5 lakh: 5%
- Annual income up to Rs 5-10 lakh: 20%
- Annual income up to Rs 10-20 lakh: 20%
- Annual income above Rs 20 lakh: 25%
Income Tax Rates 2023 (New Regime)
- Annual income up to Rs 2.5 lakh: NIL
- Annual income up to Rs 2.5- 5 lakh: 5%
- Annual income up to Rs 5-7.5 lakh: 10%
- Annual income up to Rs 7.50-10 lakh: 15%
- Annual income up to Rs 10-12.5 lakh: 20%
- Annual income up to Rs 12.5-15 lakh: 20%
- Annual income up to Rs 15-20 lakh: 20%
- Annual income above Rs 20 lakh: 25%
Read More: TAXATION OF INDIAN RESIDENT INDIVIDUALS WITH WORLDWIDE INCOME
Budget 2023 will be presented by Finance Minister Nirmala Sitharaman on February 1, 2023.