Income Tax Slabs & Rates for Financial Year 2023-24

Table of contents

1. Introduction
2. Income Tax Slabs & Rates for Financial Year 2023-24
3. Calculation of Income Tax
4. Online Transaction made safer and secure
5. Conclusion

Blog Summary

The Income Tax Slabs and Rates for Fiscal Year 2023-24 have been released, and taxpayers should be informed of the changes. Individual, HUF, and AOP tax rates remain unaltered, but there are minor increases for senior and super-senior persons.

The blog covers calculating income tax and the deductions/exemptions available. Comparisons with the previous financial year’s tax rates are discussed as common FAQs. The blog emphasises the importance of filing income tax returns on time.

Introduction

The Indian government has announced the Income Tax Slabs & Rates for Financial Year 2023-24. Income tax is levied on the earnings earned by individuals, businesses, and other entities. These tax slabs and rates determine how much one must pay based on income.

In order to effectively organise our finances as taxpayers, it’s critical to stay up to date on changes to tax rates and deductions. Tax rates for individuals, HUFs, and AOPs are unaltered for the current fiscal year; however, there are minor revisions for senior and super-senior citizens.

It’s crucial to comprehend the tax computation process and utilise available deductions to reduce our tax bill. We should not lose sight of the significance of online payment gateway services for businesses as we concentrate on taxes, though. These gateways are useful tools for business owners since they offer a safe and practical way to conduct speedy transactions.

We can optimise our financial strategy by remaining informed about tax changes and payment technology developments.

Income Tax Slabs & Rates for Financial Year 2023-24

Here are the revised income tax slabs for FY 2023-24 (AY 2024-25) in India, as presented in the Union Budget 2022-23:

For individuals falling under the new tax regime, the tax slabs and rates are as follows:

1. Those with an income of up to Rs. 3,00,000 are not required to pay any taxes.
2. Those with an income between Rs. 3,00,000 and Rs. 6,00,000 must pay a 5% tax on the amount exceeding Rs. 3,00,000.
3. Those with an income between Rs. 6,00,000 and Rs. 9,00,000 are required to pay Rs: 15,000 plus 10% tax on the amount exceeding Rs. 6,00,000.
4. Those with an income between Rs. 9,00,000 and Rs. 12,00,000 are required to pay Rs: 45,000 plus 15% tax on the amount exceeding Rs. 9,00,000.
5. Those with an income between Rs. 12,00,000 and Rs. 15,00,000 are required to pay Rs: 90,000 plus 20% tax on the amount exceeding Rs. 12,00,000.
6. Those with an income above Rs. 15,00,000 are required to pay Rs: 1,50,000 plus 30% tax on the amount exceeding Rs. 15,00,000.

For individuals between 60 and 80 years old, the tax slabs and rates are as follows:

1. Those with an income of up to Rs. 3,00,000 are not required to pay taxes.
2. Those with an income between Rs. 3,00,000 and Rs. 5,00,000 must pay a 5% tax on the amount exceeding Rs. 3,00,000.
3. Those with an income between Rs. 5,00,000 and Rs. 10,00,000 must pay 20% tax on the amount exceeding Rs. 5,00,000.
4. Those with an income above Rs. 10,00,000 should pay a 30% tax on the amount exceeding Rs. 10,00,000.

For individuals above 80 years old, the tax slabs and rates are as follows:

1. Those with an income of up to Rs. 5,00,000 are not required to pay any taxes.
2. Those with an income between Rs. 5,00,000 and Rs. 10,00,000 should pay 20% tax on the amount exceeding Rs. 5,00,000.
3. Those with an income above Rs. 10,00,000 should pay a 30% tax on the amount exceeding Rs. 10,00,000.

Calculation of the Income Tax

Calculating income tax is a necessary task that every taxpayer must accomplish correctly to pay the correct amount of tax to the government. To calculate your income tax, you must first complete the following steps:

1. Determine your gross income: Your gross income includes all of the money you’ve earned from all sources of revenue, such as your salary, wages, rental income, interest, dividends, capital gains, and any other income.
2. Subtract any applicable deductions and exemptions: After calculating your gross income, subtract any applicable deductions and exemptions. Deductions are expenses you can deduct from your gross income, such as charity contributions, medical bills, and specific company expenses. Personal exemptions and dependents are examples of exemptions that can be removed from your taxable income.
3. Calculate your taxable income: After deducting all your deductions and exemptions from your gross income, you’ll have your taxable income.
4. Apply tax rates: The next step is to apply your taxable income to the applicable tax rates. The government determines tax rates, which vary depending on your income level and filing status.
5. Calculate your tax liability: When you’ve applied the tax rates to your taxable income, you may compute your tax liability, which is the amount of tax you owe the government.
6. Subtract tax credits: You can deduct any tax credits from your liability. Tax credits, such as education credits, child tax credits, and earned income credits, are amounts that reduce the amount of tax you owe.

Figuring out your income tax can take time and effort. Still, by following the steps outlined above and using tax preparation software or consulting with a tax professional, you can ensure that you’re paying the correct amount of tax to the government.

Online Transaction Made Safer And Secure

You can always indulge in online transactions for your business for paying or receiving purposes. You know how crucial it is to ensure secure payment processing. Even the slightest mistake can lead to significant financial loss. That’s why you need a reliable payment service that you can trust, and that’s where NTT DATA Payment Services comes in.

The payment services offer a comprehensive solution for both offline and online businesses. Whether you need an online payment gateway, a point-of-sale machine, IVR payments, or Bharat QR Scan and Pay, then NTT DATA Payment Services is the best option for you. They understand the importance of convenience and security when it comes to payment processing, and that’s why they strive to offer the best services to our clients.

With NTT DATA Payment Services, you can enjoy hassle-free payment processing and stay on top of your tax deadlines. Our service enables you to pay your income and GST taxes online without complications. They also provide the facility of International Auto Debit on cards processed under RBI guidelines, making it easier for you to supervise your payments from anywhere in the world.

In today’s digital age, secure payment processing is not an option; it’s a necessity. So, choose NTT DATA Payment Services for safer and smoother payment services and experience the difference!

Conclusion

Knowing the income tax slabs and rates for the fiscal year 2023-24 is critical for all Indian taxpayers. The government has made many modifications to the tax structure to provide relief to taxpayers, particularly those in lower income levels. The elimination of exemptions and deductions and the introduction of new tax slabs have streamlined the tax filing procedure, making it easier for individuals to calculate their taxable income and pay their taxes accordingly.

Staying current on the newest tax structure changes is critical to prevent any penalties and maximise your savings. As a result, it is strongly advised to seek expert counsel and guidance to ensure compliance with the most recent income tax legislation.