ITR Filing: Income tax slab rates and deductions for old and new tax regimes - Hindustan Times
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ITR Filing: Income tax slab rates and deductions for old and new tax regimes

By | Edited by Abhyjith K. Ashokan
Jun 16, 2024 03:17 PM IST

The new income tax regime aimed to provide taxpayers more flexibility & choice, initially targeting individuals and Hindu Undivided Families (HUF).

With the Income Tax filing deadline coming up on July 31, 2024, one should be aware that there are two types of tax regimes: The old tax regime and new tax regime with different slab rates.

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Representational

The Government implemented the new tax regime as an optional alternative to the old tax system from the financial year 2020-21. It aimed to provide taxpayers with more flexibility and choice in managing their tax obligations, initially targeting individuals and Hindu Undivided Families (HUF).

Finance Minister Nirmala Sitharaman declared that the new tax structure will be established as the default regime, during the union budget proceedings for the financial year 2023-24.

Also Read | ITR Filing for 2023-24: Key documents required for income tax returns

New tax regime slabs

Up to 3 lakh: NIL

3-6 lakh: 5% on income which exceeds 3 lakh

6-9 lakh: 15,000 + 10% on income more than 6 lakh

9-12 lakh: 45,000 + 15% on income more than 9 lakh

12-15 lakh: 90,000 + 20% on income more than 12 lakh

Above 15 lakh: 1.5 lakh + 30% on income more than 15 lakh

Old tax regime slabs

Up to 2.5 lakh: Nil

2.4-5 lakh: 5% above 2.5 lakh

5-10 lakh: 12,500 + 20% above 5 lakh

Above 10 lakh: 1,12,500 + 30% above 10 lakh

Also Read | ITR e-filing: Which income tax return form is right for you?

New Tax Regime Exemption List (not exclusive)

  • Transport Allowances w.r.t. Person with Disabilities (PwD)
  • Conveyance Allowance
  • Travel/ Tour/ Transfer Compensation
  • Exemptions for Voluntary Retirement Scheme u/ Section 10(10C)
  • Gratuity Amount u/ Section 10(10)
  • Leave Encashment u/ Section 10(10AA)
  • Deductions on Deposits in Agniveer Corpus Fund u/ Section 80CCH(2)

Old Tax Regime exemption and deduction list

The old tax regime provides several tax exemptions and deductions for individuals. Some of the frequently claimed exemptions and deductions include house rent allowance (HRA), leave travel allowance (LTA), deductions under Sections 80C, 80D, 80CCD(1b), 80CCD(2), and others.

Also Read | Karnataka hikes petrol and diesel prices by 3 per litre. Check latest rates

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