Ahead of the Union Budget 2024, taxpayers have many expectations from FM Nirmala Sitharaman for some respite amid high inflation.
The income-tax slabs were unchanged in the Interim Budget presented on February 1. Let’s learn about the old tax regime structure in India.
The old tax regime has higher tax rates with provisions for various deductions and exemptions. It also differentiates taxpayers on the basis of their age.
Taxpayers are eligible for over 70 tax exemptions and deductions including the house rent allowance (HRA), leave travel allowance (LTA), standard deduction and deductions under sections 80C to 80U.
Individuals aged below 60 years and HUFs are exempted from paying tax for income up to ₹2.5 lakh. The tax rate is 5% for income falling between ₹2.5 lakh to ₹5 lakh.
The tax rate increases to 20% for income between ₹5 lakh to ₹10 lakh. For income above ₹10 lakh, the tax rate is 30%.
For senior citizens aged between 60 and 80 years, there’s no tax up to an income of ₹3 lakh and a 5% tax on income between ₹3 lakh to ₹5 lakh. The remaining tax slabs are the same as above.
For those aged above 80 years, there is no tax up to an income of ₹5 lakh, while the remaining tax slabs are the same as for those below 60.