New tax slabs, no tax on income up to Rs 7 lakh in new tax regime, 13 changes in 2023 that will impact you in 2024
Here is a look at these income tax changes and how they will impact you in 2024.
1. New tax regime income tax slabs changed: To make the new tax regime more attractive, income tax slabs under this regime were changed.
Income tax slabs for FY2023-24 under the new tax regime are as follows:
Income tax rate (%)
0-3,00,000
0
3,00,001-6,00,000
5
6,00,001-9,00,000
10
9,00,001-12,00,000
15
12,00,001-15,00,000
20
Above 15,00,000
30
Impact: The changes in the income tax slabs under the new tax regime have made it more attractive as compared to the old tax regime. The changes will be beneficial for those who are unable to make tax-saving investments and expenditures in the old tax regime. This category of people often ended up paying higher taxes before the new tax regime became available.
Also Read: Income tax slabs for FY 2023-24 (AY 2024-25)
2. Hike in basic exemption limit under new tax regime: Along with changes in the income tax slabs the basic exemption limit under the new tax regime was hiked to Rs 3 lakh from Rs 2.5 lakh earlier — an increase of Rs 50,000.
Impact: If you opt for the new tax regime for FY2023-24 income tax return filing will not be mandatory if your gross taxable income does not exceed Rs 3 lakh in a financial year. A hike in basic exemption limit will also help in saving up to Rs 15,000 (30% of Rs 50,000) for those who are planning to opt for the new tax regime in FY 2023-24 (AY 2024-25) and at the time of filing ITR. As against this, the basic exemption limit in the old tax regime remains Rs 2.5 lakh. So, clearly a person with gross taxable income between Rs 2.5 lakh and Rs 3 lakh is likely to be better off with the new tax regime.
Also Read: Basic
