Income tax is a type of tax imposed by the government on the income earned by individuals, businesses, and other entities. It is one of the primary sources of revenue for governments to fund public services and programs. Here are some key points about income tax:
- Taxable Income: Income tax is typically calculated based on the taxable income of an individual or entity. Taxable income is the total income earned minus certain deductions, exemptions, and adjustments allowed by the tax laws.
- Personal Income Tax: Personal income tax is levied on the income earned by individuals, including wages, salaries, tips, self-employment income, rental income, investment income, and other forms of earnings. The tax rates and brackets for personal income tax vary depending on the jurisdiction and the individual’s income level.
- Corporate Income Tax: Corporate income tax applies to the profits earned by corporations or other business entities. The tax rates for corporate income tax also vary depending on the jurisdiction and the size of the business. In some cases, businesses may be subject to both federal and state-level corporate income taxes.
- Filing and Payment: Taxpayers are required to file an income tax return with the appropriate tax authorities, such as the Internal Revenue Service (IRS) in the United States, reporting their income, deductions, and credits. The tax return calculates the tax liability, and taxpayers may be required to make regular estimated tax payments throughout the year or settle any remaining tax due by a specified deadline.
- Tax Deductions and Credits: Tax laws often allow various deductions and credits that reduce the taxable income and, in turn, the amount of income tax owed. These can include deductions for expenses such as mortgage interest, medical expenses, educational expenses, and contributions to retirement accounts. Tax credits directly reduce the tax liability and can be based on factors like having dependents, education expenses, or energy-efficient investments.
- Tax Withholding: Many employees have income tax withheld from their paychecks by their employers. This system of tax withholding helps individuals meet their tax obligations throughout the year and avoid a large tax bill at the end of the year.
It’s important to note that income tax laws and regulations vary by country, state, and even local jurisdiction. The specific rules and rates can change over time, so it’s advisable to consult the tax authority or a tax professional for the most accurate and up-to-date information regarding income tax in a particular jurisdiction.
As an AI language model, I don’t have real-time information or the ability to provide future tax data beyond my September 2021 knowledge cutoff. Therefore, I cannot provide the income tax slab for the assessment year 2023-24.
Income tax slabs and rates are subject to change by the government, and new tax laws are typically announced closer to the assessment year. To obtain the most accurate and up-to-date information on income tax slabs for a specific assessment year, I recommend referring to the official website of your country’s tax authority or consulting with a tax professional who can provide you with the latest tax brackets and rates applicable to your jurisdiction.
Income Tax Slab for FY 2023-24 (AY 2024-25)
The following tables show the Revised Income Tax Slabs, not the old tax regime. These new tax slabs in India were presented in the Budget 2023. The table for the new tax regime slabs-
| Tax Slab | Rates |
| Up to Rs. 3,00,000 | NIL |
| Rs. 300,000 to Rs. 6,00,000 | 5% on income which exceeds Rs 3,00,000 |
| Rs. 6,00,000 to Rs. 900,000 | Rs 15,000 + 10% on income more than Rs 6,00,000 |
| Rs. 9,00,000 to Rs. 12,00,000 | Rs 45,000 + 15% on income more than Rs 9,00,000 |
| Rs. 12,00,000 to Rs. 1500,000 | Rs 90,000 + 20% on income more than Rs 12,00,000 |
| Above Rs. 15,00,000 | Rs 150,000 + 30% on income more than Rs 15,00,000 |
Income Tax Slab for People Between 60 to 80 Years
| Tax Slabs | Rates |
| Rs. 3 lakhs | NIL |
| Rs. 3 lakhs – Rs. 5 lakhs | 5.00% |
| Rs. 5 lakhs – Rs. 10 lakhs | 20.00% |
| Rs. 10 lakhs and more | 30.00% |
Income Tax Slab for People More than 80 Years
Below-mentioned is the Senior citizen tax slab in detail-
| Tax Slabs | Rates |
| Rs. 0 – Rs. 5 lakhs | NIL |
| Rs. 5 lakhs – Rs. 10 lakhs | 20.00% |
| Above Rs. 10 lakhs | 30.00% |
Tax Slabs for Domestic Companies
| Particulars | Existing or Old regime Tax Rates | New Regime Tax Rates |
| Company opts for section 115BAB (not covered in section 115BA and 115BAA) & is registered on/after October 1, 2019 and has started manufacturing on/before 31st March 2023 | – | 15% |
| Company opts for Section 115BAA , where the total income of a company has been calculated without claiming specified deductions, exemptions, incentives, and additional depreciation | – | 22% |
| Company opts for section 115BA registered on/after March 1, 2016, and is in the manufacture of any article or thing and does not claim a deduction as specified in the section | – | 25% |
| Turnover/gross receipt of the company is less than Rs. 400 crores in the previous year | 25% | 25% |
| Other Domestic Company | 30% | 30% |
- Surcharge applicable for companies-
- 7% of Income tax where total income is more than Rs 1 crore
- 12% of Income tax where total income is more than Rs.10 crores
- 10% of income tax where domestic company opted section 115BAA and 115BAB
- Additional Health & Education Cess Rate – 4%
Income Tax Rate for Partnership Firm or LLP as Per Old/New Regime
Partnership firm or an LLP is taxable at 30%
Note –
- A Surcharge of 12% is levied on incomes above Rs 1 crore.
- Health and Education Cess Rate – 4 %
Income Tax Slab Rate for New Tax Regime
The HUF and Individual tax slab applicable are-
| Slab | New Tax Regime(Before Budget 2023 – until 31 March 2023) | New Tax Regime(After Budget 2023 – From 01 April 2023) |
| Rs. 0 to Rs. 2,50,000 | NIL | NIL |
| Rs. 2,50,000 to Rs. 3,00,000 | 5% | NIL |
| Rs. 3,00,000 to Rs. 5,00,000 | 5% | 5% |
| Rs. 5,00,000 to Rs. 6,00,000 | 10% | 5% |
| Rs. 6,00,000 to Rs. 7,50,000 | 10% | 10% |
| Rs. 7,50,000 to Rs. 9,00,000 | 15% | 10% |
| Rs. 9,00,000 to Rs. 10,00,000 | 15% | 15% |
| Rs. 10,00,000 to Rs. 12,00,000 | 20% | 15% |
| Rs. 12,00,000 to Rs. 12,50,000 | 20% | 20% |
| Rs. 12,50,000 to Rs. 15,00,000 | 25% | 20% |
| More than Rs. 15,00,000 | 30% | 30% |
