New Tax Regime for FY 2023 -24

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A resident individual having taxable income up to ₹ 7,00,000/- is eligible for tax rebate of maximum ₹ 25,000/- under Sec 87a in the new tax regime from FY 2023-24

7

Standard Deduction of ₹50,000/- has been introduced in the new tax regime from FY 2023-24 which was earlier available only under the old tax regime.

5

Surcharge at income exceeding 5 cores has been reduced to 25% from 37% under the new tax regime from FY 2023 - 24, reducing the effective tax rate to 39% from 42.74%.

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The new tax regime will be the default tax regime. Taxpayers can also opt for the old tax regime

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There are no changes in the old tax regime.

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No deduction is allowed under proposed new tax regime from FY 2023-24 except Standard deduction(U/s 87A) and deductions for contribution of 10% of Basic + DA by the employer to NPS Tier 1 A/c under 80CCD(2).

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The tax exemption limit of Rs.2.5 lakh has increased to Rs.3 lakh under the new tax regime.

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The tax rebate limit of Rs 5 lakh has been increased to Rs.7 lakh under the new tax regime from FY 2023-24.

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An individual or HUF cannot claim set-off of the brought forward business loss or unabsorbed depreciation under the new tax regime of FY 2023-24.

2

No, Section 80C or 80D deductions are not available under the new tax regime.

3

Tax slabs have been revised as follows in the new tax regime:

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No, HRA is not allowed under the new tax regime.

2

Losses from house property can only be set off against other income from house property. But losses from income from house property cannot be carried forward in the new income tax regime.

3

Any individual having salaried income can switch between the new tax regime and the old tax regime in every financial year.

Switching between the old and new tax regime is restricted for those with income from business or profession. They can switch only once in their lifetime.

4

Most of the Deductions available U/s 80C, 80D, 80E etc  and exemptions such as LTA, HRA, Children Education Allowance, Deduction for Professional Tax, Interest on Housing Loan to be forgone while opting for new tax regime.

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