Income Tax Slab for FY 2023-24 (New & Old Tax Regime) (2024)

FAQs

Is there an 50,000 standard deduction in the new tax regime? ›

Yes, Standard deduction of Rs.50,000 or the amount of salary, whichever is lower, is available for both old and new tax regimes from AY 2024-25 onwards.

For 2024, the standard deduction amount has been increased for all filers, and the amounts are as follows. Single or Married Filing Separately—$14,600. Married Filing Jointly or Qualifying Surviving Spouse—$29,200. Head of Household—$21,900.

Deductions still given in the new tax regime:

I. Standard deduction: Standard deduction of ₹50,000 from salary is given under the new tax regime (NTR). II. NPS: One can also claim deduction under section 80CCCD(2) for employer's contribution to employee NPS accounts.

Is 80C applicable in new tax regime? No, Section 80C deductions are not available under the new tax regime. How to calculate tax in new regime? From FY 2023-24 (AY 2024-25) onwards, the tax slabs under the new tax regime have been revised, as per the table given in the beginning of this article.

After deductions and adjustments, $50,000 of that income may be taxable. The calculator will show that the marginal tax rate for a single person with $50,000 in taxable income is 22%. As discussed above, the U.S. tax system is “progressive,” so not all of your income will be taxed at that rate.

There is no age at which you will no longer be taxed on Social Security payments.

IRS extra standard deduction for older adults

For 2024, the additional standard deduction is $1,950 if you are single or file as head of household. If you're married, filing, jointly or separately, the extra standard deduction amount is $1,550 per qualifying individual.

Taxes aren't determined by age, so you will never age out of paying taxes.

If you are at least 65, unmarried, and receive $15,700 or more in nonexempt income in addition to your Social Security benefits, you typically need to file a federal income tax return (tax year 2023).

Taxpayers must submit Form 10-IE along with their income tax returns to switch tax regimes, but this has to be done before the deadline, or it won't be possible to switch regimes for that entire financial year.

How to calculate taxable income? ›

For individual filers, calculating federal taxable income starts by taking all income minus “above the line” deductions and exemptions, like certain retirement plan contributions, higher education expenses, student loan interest, and alimony payments, among others.

Individual taxpayers get an additional deduction of Rs 50,000 under Section 80CCD(1B), which is over and above the prescribed threshold of Rs 1.5 lakh under Section 80CCE which is available for investment in NPS and also for traditional investments like life insurance policies, tax-saving FDs, ELSS etc."

Standard Deduction 2023-2024: How Much It Is, When to Take It. The 2024 standard deduction for tax returns filed in 2025 is $14,600 for single filers, $29,200 for joint filers or $21,900 for heads of household.

The federal individual income tax has seven tax rates ranging from 10 percent to 37 percent (table 1). The rates apply to taxable income—adjusted gross income minus either the standard deduction or allowable itemized deductions. Income up to the standard deduction (or itemized deductions) is thus taxed at a zero rate.