As per the Budget 2023 announcement, income tax slab rates FY 23-24 under old regime for individuals aged less than 60 years and new tax regime for every individual is as below:
| Annual Taxable Income | New Tax Regime | Old Tax Regime |
|---|---|---|
| Up to Rs.2.5 lakh | Exempt | Exempt |
| Over Rs.2.5 lakh to Rs.3 lakh | Exempt | 5% |
| Over Rs.3 lakh to Rs. 5 lakh | 5% | 5% |
| Over Rs.5 lakh to Rs.6 lakh | 5% | 20% |
| Over Rs.6 lakh to Rs. 9 lakh | 10% | 20% |
| Over Rs.9 lakh to Rs.10 lakh | 15% | 20% |
| Over Rs.10 lakh to Rs.12 lakh | 15% | 30% |
| Over Rs.12 lakh to Rs.15 lakh | 20% | 30% |
| Above Rs.15 lakh | 30% | 30% |
However, do keep in mind that a majority of tax saving investments including life insurance tax benefits cannot be claimed if one opts for the new tax regime. Further, new slab rates have been announced in Budget 2024 under the new tax regime income tax slab for FY 24-25, which can decrease your tax burden even further.
Income Tax Slab for Super Senior Citizens in AY 2024-25 (FY 2023-24)
As per the Income Tax Act, 1961, tax payers above 80 years of age are considered as super senior citizens and they get a higher exemption limit of Rs.5 lakh under the old tax regime. This benefit is however not applicable to super senior citizens opting for the new tax regime slabs in FY 2023-24. Super senior citizens will be required to pay taxes as per the income tax slab FY 2023-24 & AY 2024-25 under the old tax regime and new tax regime as mentioned below:
| Annual Taxable Income | New Tax Regime | Old Tax Regime |
|---|---|---|
| Up to Rs.3 lakh | Exempt | Exempt |
| Over Rs.3 lakh to Rs. 5 lakh | 5% | Exempt |
| Over Rs.5 lakh to Rs.6 lakh | 5% | 20% |
| Over Rs.9 lakh to Rs.10 lakh | 15% | 20% |
| Over Rs.6 lakh to Rs.9 lakh | 10% | 20% |
| Over Rs.10 lakh to Rs.12 lakh | 15% | 30% |
| Over Rs.12 lakh to Rs.15 lakh | 20% | 30% |
| Above Rs.15 lakh | 30% | 30% |
Like other individual tax payers, super senior citizens can also opt for the income tax slab FY 2024 under either the new tax regime or the old tax regime. However, as you can see, the old tax regime offers a higher exemption limit of Rs. 5 lakh as compared to the new tax regime which offers the same exemption limit and income tax slab rates to all eligible tax payers. Moreover, the new tax regime 2023 does not provide most common old regime deductions and exemptions like Section 80C, Section 80D, Section 24 and many more.
Income Tax Slabs & Rates for Senior Citizens in AY 2024-25 (FY 2023-24)
Tax payers aged between 60 years and less than 80 years of age are considered as Senior Citizens as per the Income Tax Act, 1961 and get a higher exemption limit under the old tax regime than taxpayers aged less than 60 years. However, this benefit is not available under the new tax regime AY 2024-25. Let’s compare the income tax slabs and rates for senior citizen as per the old tax regime and new tax regime for FY 2023-24:
| Annual Taxable Income | New Tax Regime | Old Tax Regime |
|---|---|---|
| Up to Rs.3 lakh | Exempt | Exempt |
| Over Rs.3 lakh to Rs. 5 lakh | 5% | 5% |
| Over Rs.5 lakh to Rs.6 lakh | 5% | 20% |
| Over Rs.6 lakh to Rs. 9 lakh | 10% | 20% |
| Over Rs.9 lakh to Rs.10 lakh | 15% | 20% |
| Over Rs.10 lakh to Rs.12 lakh | 15% | 30% |
| Over Rs.12 lakh to Rs.15 lakh | 20% | 30% |
| Above Rs.15 lakh | 30% | 30% |
As you can see, subsequent to the update in the new tax regime in Budget 2023, the basic exemption limit for senior citizen tax payers is now Rs. 3 lakh under both tax regime. However, senior citizens opting for the new tax regime slabs in FY 2023-24 can avail the benefit of lower income tax slab rates for the fiscal while having to forego benefits of various common tax saving investments.
