Introduction
When it comes to personal finance, understanding income tax slabs and rates is crucial. In India, income tax is calculated based on the income tax slab rates for the respective financial year. The income tax slab rates are categorized based on different income ranges and tax rates. The income tax slab rates change every financial year, and it’s essential to be updated with the latest rates. In this article, we will focus on the income tax slab rate for the assessment year 2023-24, for the income range between Rs 9 Lakh to Rs 12 Lakh.
Outline
- Understanding Income Tax Slab and Rates
- Income Tax Slab for Assessment Year 2023-24
- Income Tax Rates for Different Income Slabs for AY 2023-24
- Calculation of Income Tax for Income Range Between Rs 9 Lakh to Rs 12 Lakh
- Deductions and Tax Benefits for AY 2023-24
- How to File Income Tax Returns for AY 2023-24
- FAQs
Understanding Income Tax Slab and Rates
Income tax is a tax levied by the government on the income earned by individuals or entities. Income tax is calculated based on the income tax slab rates for the respective financial year. Income tax slab rates are categorized based on different income ranges and tax rates. Income tax slab rates change every financial year, and it is essential to be updated with the latest rates.
Income Tax Slab for Assessment Year 2023-24
For the assessment year 2023-24, the income tax slab rate for the income range between Rs 9 Lakh to Rs 12 Lakh is as follows:
| Income Range | Tax Rate |
|---|---|
| Rs. 0 – Rs. 2.5 Lakh | Nil |
| Rs. 2.5 Lakh – Rs. 5 Lakh | 5% |
| Rs. 5 Lakh – Rs. 7.5 Lakh | 10% |
| Rs. 7.5 Lakh – Rs. 10 Lakh | 15% |
| Rs. 10 Lakh – Rs. 12.5 Lakh | 20% |
| Rs. 12.5 Lakh – Rs. 15 Lakh | 25% |
| Above Rs. 15 Lakh | 30% |
The income tax rate for the income range between Rs 9 Lakh to Rs 12 Lakh is 20%.
Income Tax Rates for Different Income Slabs for AY 2023-24
For the assessment year 2023-24, the income tax rates for different income slabs are as follows:
| Income Range | Tax Rate |
|---|---|
| Rs. 0 – Rs. 2.5 Lakh | Nil |
| Rs. 2.5 Lakh – Rs. 5 Lakh | 5% |
| Rs. 5 Lakh – Rs. 7.5 Lakh | 10% |
| Rs. 7.5 Lakh – Rs. 10 Lakh | 15% |
| Rs. 10 Lakh – Rs. 12.5 Lakh | 20% |
| Rs. 12.5 Lakh – Rs. 15 Lakh | 25% |
| Above Rs. 15 Lakh | 30% |
The above tax rates are applicable for individuals who are below the age of 60 years. For senior citizens, the tax exemption limit is Rs 3 Lakh, and for super senior citizens, it is Rs 5 Lakh.
Calculation of Income Tax for Income Range Between Rs 9 Lakh to Rs 12 Lakh
Let’s understand how to calculate the income tax for the income range between Rs 9 Lakh to Rs 12 Lakh for the assessment year 2023-24.
Suppose an individual’s taxable income is Rs 10 Lakh. First, we need to calculate the gross total income by adding all the incomes earned during the financial year, such as salary, rental income, interest income, etc. Next, we need to subtract the applicable deductions under sections 80C, 80D, etc., to arrive at the taxable income.
For the income range between Rs 9 Lakh to Rs 12 Lakh, the tax rate is 20%. Therefore, the individual’s income tax liability would be Rs. 20,000 (20% of Rs. 1,00,000). Additionally, a cess of 4% is applicable on the income tax payable.
Deductions and Tax Benefits for AY 2023-24
To reduce income tax liability, an individual can claim various deductions and tax benefits under various sections of the Income Tax Act, of 1961. Some of the popular deductions are:
a. Section 80C: This section provides a deduction of up to Rs 1.5 Lakh for investments made in PPF, ELSS, NPS, and other eligible instruments. b. Section 80D: This section provides a deduction for health insurance premiums paid for self, spouse, and dependent children. c. Section 24(b): This section provides a deduction of up to Rs 2 Lakh for the interest paid on a home loan. d. Section 80TTA: This section provides a deduction of up to Rs 10,000 on interest earned on savings bank account deposits.
How to File Income Tax Returns for AY 2023-24
Filing income tax returns (ITR) is mandatory for individuals whose total income exceeds the basic exemption limit. To file ITR for AY 2023-24, an individual needs to follow the below steps:
a. Register on the Income Tax Department’s e-filing portal b. Choose the relevant ITR form and download it c. Fill in the necessary details such as personal information, income details, deductions claimed, etc. d. Calculate the income tax liability and pay the tax if any e. Upload the ITR form and submit it
FAQs
Q1. What is the income tax rate for the income range between Rs 9 Lakh to Rs 12 Lakh for the assessment year 2023-24?
A1. The income tax rate for the income range between Rs 9 Lakh to Rs 12 Lakh is 20% for the assessment year 2023-24.
Q2. Is it mandatory to file income tax returns for AY 2023-24?
A2. Yes, it is mandatory to file income tax returns for AY 2023-24 if your total income exceeds the basic exemption limit.
Q3. Can I claim deductions for the donations made to charitable organizations?
A3. Yes, donations made to charitable organizations are eligible for deduction under Section 80G of the Income Tax Act, of 1961.
Q4. What is the deadline for filing income tax returns for AY 2023-24?
A4. The deadline for filing income tax returns for AY 2023-24 is 31st July 2023, for individuals who are not subject to a tax audit.