Tax rates/slabs under New Tax Regime for FY 2023-2024 and tax rebate under section 87A of the Income Tax Act, 1961
There are two things: (net) income and (net) taxable income. Net taxable income is obtained after various deductions and exemptions from net income (like deductions and exemptions obtained using investment in mutual funds, fixed deposits, insurance, pension, etc.)
Under the new tax regime, people with net taxable income below 7 lacs are not supposed to pay any income tax. But according to the new tax regime slabs, the people with net income between 3 to 6 lacs are supposed to pay 5 percent of their income as tax. How is it possible?
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