DOWNLOAD THE INCOME TAX CALCULATOR FOR THEA.Y.2024-25 WITH INCOME TAX READY RECKONER FOR F. Y. 2023-24 (A.Y. 2024-2025).
A quick review (Limited Information) of the applicable provisions under the Income Tax Act, 1961 for the F. Y. 2023-24 (A. Y. 2024-25), after incorporating amendments (only key and selective amendments) proposed by the Union Budget of 2023, are given below for ready reference and information.:-
(NOTE: The Budget of 2023 has made the New Tax Regime u/s 115BAC a “Default Regime” and the Old Tax Regime has become “Tax Inefficient” for Assessees (other than having brought forward and carried forward losses) and therefore the provisions of Old Tax Regime are given as an Annexure)
“TAX RATE” UNDER “NEW TAX REGIME” FOR INDIVIDUAL, HUF, AOP, BOI (U/S 115BAC)
| SLAB | TOTAL INCOME | Rate of Tax | TAX CALCULATOR |
| I | Upto Rs. 3,00,000/- | 0 % | NIL |
| II | Rs. 3,00,001/- to Rs. 6,00,000/- | 5% | (Total Income – 3,00,000)*5% |
| III | Rs. 6,00,001/- to Rs. 9,00,000/- | 10 % | 15000 + (T.I. – 600000)*10% |
| IV | Rs. 9,00,001/- to Rs. 12,00,000/- | 15 % | 45000+(T.I.– 9,00,000)*15% |
| V | Rs. 12,00,001/- to Rs. 15,00,000/- | 20 % | 90000 + (T.I. – 12,00,000) * 20% |
| VII | Above Rs. 15,00,000/- | 30 % | 1,50,000/- + (T.I. – 15,00,000) * 30% |
ALLOWABLE DEDUCTIONS/ INCENTIVES IN THE NEW TAX REGIME:-
| Section | Nature | Allowable Deduction Limit |
| 16 (ia) | Standard Deduction to Salaried Employees | Upto Rs. 50,000/- |
| 57 (iia) | Family Pension paid to the Family Member after the death of the Employee by the Employer | Lower of(i) Rs. 15000/- or(ii) 33 1/3 % of such Family Pension Received |
| 80 CCD(2) | Employer Contribution to National Pension Scheme (NPS) | For Central & State Govt Employees – the Limit is 14% off of their Salary; For Other Employees – The limit is 10% of their Salary; |
| 80 CCH | Amount Deposited under the Agniveer Corpus Fund | 100% Amount Deposited |
| 80 JJA | Profits and Gains from the Business of Collecting and Processing Biodegradable Waste | 100% upto 5 years of commencement of business |
| 80 LA (1A) | Income of unit of an International Financial Services Center | 100% for any consecutive 10 years out of the first 15 years |
| 87A | Rebate | 25,000/- or Tax Liability whichever is lower for Resident Individuals with income upto 7,00,00/- |
EXEMPTIONS ALLOWABLE UNDER THE NEW TAX REGIME:-
Interest and final payment under PPF [u/s 10(11)]
Interest and final payment under Sukanya Samriddh Yojna [u/s 10(11A)]
Sum received from Life Insurance Policy [10(10D)] – New Policy after 01-04-2023 limit upto 5 Lakhs annual premium
Payments including withdrawals from NPS [u/s 10(12A)/(12B)]
Gratuity [u/s 10(10)], Commutation of Pension [u/s 10(10A)], Leave Encashment [u/s 10(10AA)], Retrenchment Compensation [u/s 10(10B)], Compensation on Voluntary Retirement or Separation [u/s 10(10C)], Non Monetary Perquisite by Employer [u/s 10(10CC)], Interest and Withdrawal from Recognised Provident Fund [u/s 10(12)], Payment from approved Superannuation Fund [u/s 10(13)]
Alternate Minimum Alternate Tax u/s 115JC is not applicable in the case of a Lower Tax Regime.
BLOCKED DEDUCTIONS/ INCENTIVES IN THE NEW TAX REGIME:-
Leave Travel Concession [u/s 10(5)]
House Rent Allowance [u/s 10(13A)]
Special Allowance other than those as may be prescribed [u/s 10(14)]
Allowances to MP/ MLAs [u/s 10(17)]
Exemption of Rs. 1500/- for clubbed income of minor child [u/s 10(32)]
Special Economic Zone [u/s 10AA]
Entertainment Allowance Deduction [u/s 16(ii)]
Professional Tax Deduction [u/s 16(iii)]
No Adjustment of Losses brought forward from earlier years and/or Additional Depreciation of earlier years is permitted.
No adjustment for the depreciated value of the block of assets brought forward is permitted.
Loss on account of Interest on Home Loan [u/s 24(b)]
Additional Depreciation [u/s 32(1)(iia)]
Investment Allowance in case of Backward Area [u/s 32AD]
Tea/ Coffee/ Rubber Development Account [u/s 33AB]
Site Restoration Fund [u/s 33ABA]
Deduction for Scientific Research [u/s 35(1) (ii)/(iia)/(iii), 35(2AA)]
Capital Expenditure pertaining to Specified Business [u/s 35AD]
Agricultural Extension Project [u/s 35CCC]
Deduction u/s 80C to 80U [except Employers Contribution to NPS u/s 80CCD(2), Agniveer Corpus Fund u/s 80CCH, deduction u/s 80JJA and 80LA(1A)]
No Adjustment of Losses brought forward from earlier years and/or Additional Depreciation of earlier years is permitted.
No adjustment for the depreciated value of the block of assets brought forward is permitted.
CONDITIONS & RESTRICTIONS ON “OPTING OUT” OF THE NEW TAX REGIME:-
New Tax Regime u/s 115 BAC is Default Tax Regime from FY 2023-24 onwards and provisions for Opting Out to Old Scheme are as below:-
For Assessees not having business income annual option can be exercised along with the return of income;
| Section | Nature of Income | Income Tax Rate | |||
| 111A | Short-Term Capital Gain – Listed Equities & Equity MF | 15% | |||
| 112 | Long-Term Capital Gain – Others | 20% | |||
| 112A | Long-Term Capital Gain above Rs. 1 Lakhs – Listed Equities, Equity MF, certain ULIPs | 10% | |||
| 115BB | Winning from Lotteries, Crossword Puzzles, or races including horse races or Card Game or Sport in India or gambling or betting in any form or nature whatsoever (Other than Online Gaming) | 30% | |||
| 115BBJ | Tax on Winnings from Online Gaming | 30%of Net Winning | |||
| S.No. | Quantum of Income of Assessee | Rate of Surcharge only on Income Taxable u/s 111A, 112, 112A &Dividend | Rate of Surcharge on all Other Incomes | ||
| 1 | Total Income upto Rs. 50 Lakhs | Nil | Nil | ||
| 2 | Total Income > 50 Lakhs <= 1 Crore | 10% | 10% | ||
| 3 | Total Income > 1 Crore <= 2 Crore | 15% | 15% | ||
| 4 | Total Income > 2 Crores(excluding income u/s 111A, 112, 112A & Dividend) | 15% | 25% | ||
| 5 | Total Income > 2 Crores including income u/s 111A, 112, 112A &Dividend(cases not covered in S. No. 4 and 5 above) | 15% | 15% | ||
For Assessees having business income one-time option can be exercised before the due date for filing a return of income and the same shall continue for subsequent years; Provided that for Business Assessees the option for Old Regime can be withdrawn only once and once withdrawn such person cannot opt for old regime again.
“SPECIFIED TAX RATES” IN CERTAIN CASES (SELECTED SECTIONS ONLY) OVERRIDING THE REGULAR TAX RATE
“Health & Education Cess” – 4% of the Income Tax & Surcharge“
TOTAL TAX PAYABLE = TAX + SURCHARGE + HEALTH & EDUCATION CESS”
RATE OF INCOME TAX ON PARTNERSHIP FIRMS & LLPs
Rate of Income Tax @ 30 % of Total Income
Surcharge – If Total Income upto 1 Crore – NIL
If Total Income > 1 Crore – 12%
Health & Education Cess – 4% of the Income Tax & Surcharge (replaced 3% Cess in the preceding year)
Expenses that can be claimed only if mentioned in the Partnership Deed of the Firm
Remuneration is permissible to Partners – subject to the Limit prescribed below:-
| Book Profit (BP) of the Firm | Allowable Remuneration |
| In case of Loss | Rs. 150000/- |
| Book Profit (BP) <= Rs. 3 Lakhs | Higher of Rs. 1,50,000/- or @ 90 % of Book Profits |
| Book Profit (BP) > Rs. 3 Lakhs | 2,70,000/- + (BP – 3,00,000) * 60% |
Interest on Partners Capital (if provided in the Partnership Deed) is allowed upto a Maximum of 12 % p.a.
TAX RATE ON INDIVIDUALS, HUFs, AOP, BOI UNDER OLD TAX REGIME (OPTIONAL)
Tax Calculator (General Category & Women):-
| SLAB | TOTAL INCOME | Rate of Tax | TAX CALCULATOR | COMMENTS |
| I | Upto Rs. 2,50,000/- | 0 % | NIL | NO CHANGE |
| II | Rs. 2,50,001/- to Rs. 5,00,000/- | 5% | (Total Income – 2,50,000)*5% | NO CHANGE |
| III | Rs. 5,00,001/- to Rs. 10,00,000/- | 20 % | 12500 + (T.I. – 500000)*20% | NO CHANGE |
| IV | Above Rs. 10,00,000/- | 30 % | 112500+(T.I.–10,00,000)*30% | NO CHANGE |
Tax Calculator (Senior Citizen – Age 60 Years and above):-
| SLAB | TOTAL INCOME | Rate of Tax | TAX CALCULATOR | COMMENTS |
| I | Upto Rs. 3,00,000/- | 0 % | NIL | NO CHANGE |
| III | Rs. 3,00,001/- to Rs. 5,00,000/- | 5% | (Total Income – 3,00,000)*5% | NO CHANGE |
| IV | Rs. 5,00,001/- to Rs. 10,00,000/- | 20 % | 10000 + (T.I. – 500000)*20% | NO CHANGE |
| V | Above Rs. 10,00,000/- | 30 % | 110000+(T.I.–10,00,000)*30% | NO CHANGE |
Tax Calculator (Very Senior Citizen – Age 80 Years):-
| SLAB | TOTAL INCOME | Rate of Tax | TAX CALCULATOR | COMMENTS |
| I | Upto Rs. 5,00,000/- | 0 % | NIL | No Change |
| II | Rs. 5,00,001/- to Rs. 10,00,000/- | 20 % | (T.I. – 5,00,000)*20 % | No Change |
| III | Above Rs. 10,00,000/- | 30 % | 1,00,000+(T.I.–10,00,000)*30% | No Change |
SELECTED DEDUCTIONS AND BENEFITS UNDER INCOME TAX FOR INDIVIDUALS
| Section | Nature | Deduction Upper Limit | Comments/ Remarks |
| 16 (ia) | Standard Deduction to Salaried Employees | 50,000/- | No Change |
| 23(2) &23(4) | Deduction of Deemed Rent on Self-Occupied House | Entire Deemed Rent of 2 Houses “not Let Out” by an Assessee | No Change |
| 24 (b) | Interest on Housing Loan (For Self Occupied Property) | Upto Rs. 2 Lakhs | In the case of Let Out House Property the entire Interest is deductible; however by virtue of Section 71 (3A), the maximum loss of only upto Rs. 2 Lakhs can be set off against income from other heads of income and excess if any shall be carried forward for set- off in succeeding 8 years. |
| 80 C | Investments in Life Insurance Premium, PF, PPF, NSC, ULIP, TaxBenefit Mutual Funds, Tuition Fees (2 Children), Home Loan Principal Repayment, Notified Bonds, 5 Yr FDs, etc | Upto Rs. 1.50 Lakhs | For Central Government Employees, a contribution to the specified account of the Pension Scheme referred to in Section 80CCD subject to conditions, has been included for deduction in this section. |
| 80 CCD | Investment in National Pension Scheme (NPS) | Upto Rs. 0.50 Lakhs | For Central Govt Employees – the Limit is 14% off of Salary; For Other Employees – The limit is 10% of Salary; for individuals other than employees – the limit of investment in NPS is 20% of GTI |
| 80 D | Mediclaim Insurance | Sr. Citizen: Rs. 50000 Others: Rs. 25000 | No Change |
| 80 E | Interest in Education Loan (Upto a maximum of 8 years from the year of the first repayment) | Entire Interest Paid during the year | Education Loan must be taken by that Individual; For Higher Education of Self, Spouse, Children, or student for whom, he is a legal guardian; The loan is taken from any Financial Institution or approved Charitable Institution; |
| 80 EEA | Additional Interest on Home Loan for 1st Residential House Property | Rs. 1,50,000/- | Loan sanctioned between 01-04-19 to 31- 03-22; Stamp Duty Value of property not exceeding Rs. 45 Lakhs; Deduction of Interest is only allowed once and cannot be claimed in both 24(b) and 80EEA or any other section; |
| 80 EEB | Interest on Loan for Purchase of Electric Vehicle | Rs. 1,50,000/- | The loan is sanctioned by a Financial Institution (including NBFC) between 01- 04-2019 to 31-03-2023; and the assessee does not own any other Electronic Vehicle on the date of sanction of the loan.No deduction is allowed for this interest in any other section of IT Act |
| 80 GG | Rent Paid | Lower of Following: 1. Rs. 5000 p.m.25% of Total Income; Rent Paid – 10% of Total Income | No Change |
| 80TTA | Interest from Savings Account | Rs. 10000/- | This is allowed to the extent of Interest earned from the Savings Account. No Benefit under this section if benefit u/s 80TTB is claimed. |
| 80TTB | Interest from Deposits in Banking Co or P.O. | Rs. 50000/- | Only for Senior Citizens (Aged 60 years) without TDS Liability. |
| 87A | Rebate | 12,500/- or Tax Liability whichever is lower | Applicable only for Individuals resident in India with Total Income upto Rs. 5,00,000/- |
Download the Income Tax Calculator for the Financial Year 2023-24 and theAssessment Year 2024-25 (As per the Budget 2023)
