New Tax Regime for Senior Citizens: Income Tax Calculator, Slabs, Rates and Rebates for FY 2023-24

Share

Tweet

Share

Share

Email

Comments

New Tax Regime for Senior Citizens: Through Finance Act 2023, the Government has changed income tax rates under the New Tax Regime for taxpayers.

Read More:- Form 26AS Online: How To Download Your Tax Credit Statement?

New Tax Regime for Senior Citizens: Through Finance Act 2023, the Government has changed income tax rates under the New Tax Regime for taxpayers, including senior citizens. Now, there are only 5 rates ranging from 5% to 30% while income up to Rs 7 lakh is tax-free for those opting for the New Tax Regime.

Under the old tax regime, resident individuals with total income up to Rs 5 lakh are subjected to a Nil effective tax rate by way of claiming full rebate u/s 87A of the IT Act. However, with effect from 1st April 2023 (FY 2023-24), individuals opting for the new tax regime can claim full tax rebate u/s 87A of IT Act for total income up to Rs 7 lakh.

Read More:- Rising Covid Cases: 8 States Asked To Take Preemptive Action, 11 Districts Report Positivity Rate Higher Than 10

The tax rates in the New Tax Regime are the same for all individuals and senior citizens above 60 years up to 80 years and super senior citizens above 80 years. Senior citizen taxpayers are also required to pay additional Health and Educational cess at the rate of 4% of the total income tax liability.

New Tax Regime Calculator for Senior Citizens

Senior citizens can use the following Income Tax Calculator for calculating their tax liability under both old and new regimes for FY 2022-23 and Fy 2023-24.

Read More:– Akshaya Tritiya 2023: Planning To Buy Digital Gold Online? Check This Full Guide

New Tax Regime Slabs, Rates for Senior Citizens

Income up to Rs 3 lakh: From FY 2023-24, starting April 1, there is no tax on income up to Rs 3 lakh.

Income Up to Rs 3 lakh to Rs 5 lakh: Tax on income from Rs 3 lakh to Rs 5 lakh is 5% for FY 2023-24. However, with the new tax rebate, income up to Rs 7 lakh is tax-free under New Regime.

Income Up to Rs 5 lakh to Rs 6 lakh: Tax on income from Rs 5 lakh to Rs 6 lakh is 5% for FY 2023-24. However, with the new tax rebate, income up to Rs 7 lakh is tax-free under New Regime.

Income Up to Rs 6 lakh to Rs 7.5 lakh: Tax on income from Rs 6 lakh to Rs 7.5 lakh is 10% for FY 2023-24. However, with the new tax rebate, income up to Rs 7 lakh is tax-free under New Regime.

Income Up to Rs 7.5 lakh to Rs 9 lakh: Tax on income from Rs 7.5 lakh to Rs 9 lakh is 10% for FY 2023-24. However, with the new tax rebate, income up to Rs 7 lakh is tax-free under New Regime.

Income Up to Rs 9 lakh to Rs 10 lakh: Tax on income from Rs 9 lakh to Rs 10 lakh is 15% for FY 2023-24 under New Regime.

Income Up to Rs 10 lakh to Rs 12 lakh: Tax on income from Rs 10 lakh to Rs 12 lakh is 15% for FY 2023-24 under New Regime.

Income Up to Rs 12 lakh to Rs 12.5 lakh: Tax on income from Rs 12 lakh to Rs 12.5 lakh is 20% for FY 2023-24 under New Regime.

Income Up to Rs 12.5 lakh to Rs 15 lakh: Tax on income from Rs 12.5 lakh to Rs 15 lakh is 20% for FY 2023-24 under New Regime.

Income over Rs 15 lakh: Tax on income over Rs 15 lakh is 30% for FY 2023-24 under New Regime.

Read More:- PAN Card Limit: What To Do If You Have 2 PAN Cards? Know Penalty And Other Details

When will ITR filing start?

The above tax rates will be applicable for income earned in the current financial year (FY 2023-24). For income earned in FY 2022-23, the ITR filing is expected to start soon on the e-filing portal.