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As you are aware, for the Financial Year 2023-24, there are changes in the Income Tax Slabs and Tax Regime.

We are happy to share that, Paybooks has implemented the changes in the system to ensure that from the beginning of the financial year, the same is considered while calculating the Income Tax

As per the changes, the New Tax Regime will be the default Tax Regime and if an employee wishes to change to the Old Tax Regime, the same should have opted before the cutoff date, else Income Tax will be calculated based on the New Tax Regime.

There are no changes in Income Tax Slabs in the Old Tax Regime.  Only the Surcharge is changed.  Below are the Tax Slabs for the FY 2023-24

Old Tax Regime

 Below 60 years of Age

Sr. Citizens – 60 to 80 years

New Tax Regime

The Surcharge applicable for the New Tax Regime is as follows:

No change in Surcharge for the old tax regime

Note: The highest Surcharge is reduced from 37% to 25%.

For both the New and Old Tax Regimes there will be a 4% Education Cess.

Other Income Tax Changes

• Relief under Section 87A has been increased from 5 lacs to 7 lacs under the New Tax Regime.
• For employees earning taxable income between 7 lakhs and 7,27,777 lakhs, there is a new marginal relief provided to ensure that such employees don’t end up paying high taxes.
• Standard Deduction of INR 50,000/- has been introduced even for the New Tax Regime
• Leave Encashment Exemption increased from 3 Lacs to 25 Lacs.
• New Tax Regime is the default Tax Regime.