With the new Union, Budget 2023-24 released the income tax slab and rates have been modified for the senior citizens under a simplified tax regime or New Tax Regime. These new changes have raised several questions and doubts in the minds of senior citizens and retired employees. However, this article will help you to get rid of all the doubts and misunderstandings regarding the new income tax slab.
Accessible Tax Regime Options and Income Tax Slab
For the assessment year 2023-24, the senior citizens have both options available. They can either file their Income Tax Return under the new tax regime or the old tax regime. However, on the e-filing portal, a new tax regime and income tax slab will be available by default. You will have to choose the old tax regime.
Which Income Tax Slab or Rate Will be Applicable?
“If you are filing ITR this year (i.e. for AY 2023-24 or FY 2022-23), the applicable tax slab and rates for return filing will be the same as it was in the previous year.”
New Income Tax Slab Under New Tax Regime For Senior Citizen ITR Filing in AY 2023-24:
- 0 to Rs 2.5 lakh: NIL
- Rs 2.5 to Rs 5 lakh: 5% above Rs 2.5 lakh
- Rs 5 lakh to Rs 7.5 lakh: Rs 12,500 + 10% above Rs 5 lakh
- Rs 7.5 lakh to Rs 10 lakh: Rs 37,500 + 15% above Rs 7.5 lakh
- Rs 10 lakh to Rs 12.5 lakh: Rs 75,000 + 20% above Rs 10 lakh
- Rs 12.5 lakh to Rs 15 lakh: Rs 1,25,000 + 25% above Rs 12.5 lakh
- Above Rs 15 lakh: Rs 1,87,500 + 30% above Rs 15 lakh
Old Income Tax Slab Under Old Tax Regime For Senior Citizen ITR Filing in AY 2023-24:
- Rs 3 lakh: NIL
- Rs 3-5 lakh: 5% above Rs 3 lakh
- Rs 5-10 lakh: 10,000 + 20% above Rs 5 lakh
- Above 10 lakh: Rs 1,10,000 + 30% above Rs 10 lakh
Also read:8 Safest Ways to Save Tax Legally?
“There is no change in the Old Tax Regime slabs and rates. This means you will be filing ITR at the same rates and slabs if opting for Old Regime as the previous year. Hope, the above settles the confusion over which tax slab and rates will be applicable for ITR filing this year and the next,” mentioned financial express.