Income tax calculator: Changes in revenue tax slab FY 2023-24 that you need to know

Income tax calculator: After ushering in new monetary 12 months from 1st April 2023, new revenue tax regime has develop into a by default tax regime for taxpayers. However, an incomes particular person could have the choice to choose previous revenue tax regime. From at this time, normal deduction of ₹50,000 every year has additionally been prolonged in new revenue tax regime. However, crucial change happening from at this time is new revenue tax slab for FY 2023-24, which has develop into efficient with the start of latest monetary 12 months.

In this new revenue tax slab, no matter the brand new or previous tax regime, no revenue tax is payable on an annual revenue of as much as ₹3 lakh as ₹50,000 per annual normal deduction has been prolonged to new revenue tax regime as effectively. On an annual revenue of ₹3,00,001 to ₹6 lakh, 5 per cent revenue tax can be payable in present fiscal. On revenue of ₹6,00,001 to ₹9 lakh in FY24, an revenue taxpayer must pay 10 per cent revenue tax. On an annual revenue of ₹9,00,001 to ₹12 lakh, 15 per cent revenue tax can be levied within the monetary 12 months 2023-24. On revenue of ₹12,00,001 to ₹15 lakh in single monetary 12 months, 20 per cent revenue tax can be levied on the taxpayer. On revenue above ₹15 lakh every year, 30 per cent revenue tax can be levied on the taxpayer underneath new revenue tax slab efficient from 1st April 2023.

However, the brand new revenue tax slab can be relevant for less than these taxpayers who go for the brand new revenue tax regime whereas submitting their revenue tax return (ITR).

Zero revenue tax on ₹7 lakh or beneath revenue

Income tax rebate underneath Section 87A of the revenue tax act has additionally been prolonged to new revenue tax regime in FY24. So, this profit is now out there to all these taxpayers who do not choose previous tax regime throughout ITR submitting.

Elaborating upon the good thing about this revenue tax rebate, Pankaj Mathpal, MD & CEO at Optima Money Managers stated,, “Under Section 87A of the income tax act, a maximum rebate of ₹25,000 per in one financial year has been now extended to new income tax regime from FY24. This means, a person earning ₹7 lakh or below in FY24 won’t need to pay any income tax as he can claim ₹15,000 income tax rebate on ₹3,00,001 to ₹6 lakh income tax slab and ₹10,000 rebate on ₹6,00,001 to ₹7 lakh income tax slab.”

Asking debt mutual fund traders to maintain a tab on one’s revenue tax slab after good points in debt mutual fund funding, SEBI registered tax and funding knowledgeable Jitendra Solanki stated, “From 1st April 2023, income from debt mutual fund investments would be considers short term capital gain taxable at income tax slab rates.”

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