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Rates Of Income Tax Assessment Year

Rate of Income-tax Assessment Year 2024-25 Assessment Year 2023-24

1. In case of an Individual (resident or non-resident) or HUF or Association of Person or Body of Individual or any other artificial juridical person

Individuals
(Other than resident senior and super senior citizen)
Net Income Range Rate of Income-tax
Assessment Year 2024-25 Assessment Year 2023-24
Up to Rs. 2,50,000 - -
Rs. 2,50,000 to Rs. 5,00,000 5% 5%
Rs. 5,00,000 to Rs. 10,00,000 20% 20%
Above Rs. 10,00,000 30% 30%
Resident Senior Citizen
(who is 60 years or more but less than 80 years at any time during the previous year)
Net Income Range Rate of Income-tax
Assessment Year 2024-25 Assessment Year 2023-24
Up to Rs. 3,00,000 - -
Rs. 3,00,000 to Rs. 5,00,000 5% 5%
Rs. 5,00,000 to Rs. 10,00,000 20% 20%
Above Rs. 10,00,000 30% 30%
Resident Super Senior Citizen
(who is 80 years or more at any time during the previous year)
Net Income Range Rate of Income-tax
Assessment Year 2024-25 Assessment Year 2023-24
Up to Rs. 5,00,000 - -
Rs. 5,00,000 to Rs. 10,00,000 20% 20%
Above Rs. 10,00,000 30% 30%
Hindu Undivided Family (Including AOP, BOI and Artificial Juridical Person)
Net Income Range Rate of Income-tax
Assessment Year 2024-25
Assessment Year 2023-24
Up to Rs. 2,50,000 - -
Rs. 2,50,000 to Rs. 5,00,000 5% 5%
Rs. 5,00,000 to Rs. 10,00,000 20% 20%
Above Rs. 10,00,000 30% 30%

Add:

a. Surcharge : Surcharge is levied on the amount of income-tax at following rates if total income of an assessee exceeds specified limits:-

Rate of Surcharge
Assessment Year 2024-25 Assessment Year 2023-24
Range of Income Range of Income
Rs. 50 Lakhs to Rs. 1 Crore Rs. 1 Crore to Rs. 2 Crores Rs. 2 Crores to Rs. 5 Crores above Rs. 5 crore Rs. 50 Lakhs to Rs. 1 Crore Rs. 1 Crore to Rs. 2 Crores Rs. 2 Crores to Rs. 5 Crores above Rs. 5 crore
10% 15% 25% 37% 10% 15% 25% 37%

Note:

(1) The enhanced surcharge of 25% & 37%, as the case may be, is not levied, on dividend income or income chargeable to tax under sections 111A, 112, 112A and 115AD(1)(b). Hence, the maximum rate of surcharge on tax payable on such incomes shall be 15%.

(2) The surcharge rate for AOP with all members as a company, shall be capped at 15%.

(3) The surcharge rate is nil if the total income of a ‘specified fund’ as referred to in section 10(4D) includes any income in respect of securities as given under section 115AD(1)(a) (For Assessment Year 2024-25).

Marginal relief is available from surcharge in following manner-

  i.  in case where net income exceeds Rs. 50 lakh but doesn`t exceed Rs. 1 Crore, the amount payable as income tax and surcharge shall not exceed the total amount payable as income tax on total income of Rs 50 Lakh by more than the amount of income that exceeds Rs 50 Lakhs.

 ii.  in case where net income exceeds Rs. 1 crore but doesn`t exceed Rs. 2 crore, marginal relief shall be available from surcharge in such a manner that the amount payable as income tax and surcharge shall not exceed the total amount payable as income-tax on total income of Rs. 1 crore by more than the amount of income that exceeds Rs. 1 crore.

iii.  in case where net income exceeds Rs. 2 crores but doesn`t exceed Rs. 5 crores, marginal relief shall be available from surcharge in such a manner that the amount payable as income tax and surcharge shall not exceed the total amount payable as income-tax on total income of Rs. 2 crores by more than the amount of income that exceeds Rs. 2 crores.

iv.  in case where net income exceeds Rs. 5 crores, marginal relief shall be available from surcharge in such a manner that the amount payable as income tax and surcharge shall not exceed the total amount payable as income-tax on total income of Rs. 5 crores by more than the amount of income that exceeds Rs. 5 crores.

b. Health and Education Cess : Health and Education Cess is levied at the rate of 4% on the amount of income-tax plus surcharge.

Notes:

(1) The Health and Education Cess is nil if the total income of a `specified fund` as referred to section 10(4D) includes any income in respect of securities as given under section 115AD(1)(a) (For Assessment Year 2024-25).

(2) A resident individual (whose net income does not exceed Rs. 5,00,000) can avail rebate under section 87A. It is deductible from income-tax before calculating education cess. The amount of rebate is 100 per cent of income-tax or Rs. 12,500, whichever is less.

(3) If the total income of resident individual, who is opting for the new tax scheme under section 115BAC(1A), is up to Rs. 7,00,000, a higher rebate of Rs. 25,000 is allowed under section 87A.Such higher rebate is also subject to marginal relief (For Assessment Year 2024-25).

Alternate Minimum Tax (AMT)

An individual is liable to pay Alternate Minimum Tax where tax payable by him, on his total income computed as per normal provisions of the Act, is less than 18.5% of `adjusted total income`. In such a case the `adjusted total income` is taken as income of such individual and he shall be liable to pay tax at the rate of 18.5% of such `adjusted total income`.

However, AMT is levied at the rate of 9% (plus surcharge and cess as applicable) in case of an assessee other than a company, being a unit of an International Financial Services Centre and deriving its income solely in convertible foreign exchange.

1.1. Special tax Rate for Individual and HUFs

New tax regime (also known as alternative tax regime) is optional for the Assessment Year 2023-24. An individual or HUF has to exercise the option under Section 115BAC(5) to avail its benefit.

However, for the Assessment Year 2024-25, the new tax regime is the default tax regime for the Individual or HUF. Further, the benefit of new tax regime has also extended to Association of Persons (AOP)/Body of Individuals (BOI) and Artificial Juridical Person (AJP) w.e.f. Assessment Year 2024-25. If one to opt-out from default new tax regime, he has to exercise the option under Section 115BAC(6).

The tax rates under the new tax regime are as under:

(a) For Assessment Year 2023-24:

Net Income Range Tax rate
Up to 2,50,000 Nil
From 2,50,001 to 5,00,000 5%
From 5,00,001 to 7,50,000 10%
From 7,50,001 to 10,00,000 15%
From 10,00,001 to 12,50,000 20%
From 12,50,001 to 15,00,000 25%
Above Rs. 15,00,000 30%

(b) For Assessment Year 2024-25:

Net Income Range Tax rate
Upto Rs. 3,00,000 Nil
From Rs. 3,00,001 to Rs. 6,00,000 5%
From Rs. 6,00,001 to Rs.9,00,000 10%
From Rs. 9,00,001 to Rs. 12,00,000 15%
From Rs. 12,00,001 to Rs. 15,00,000 20%
Above Rs. 15,00,000 30%

Add:

a. Surcharge : Surcharge is levied on the amount of income-tax at following rates if total income of an assessee exceeds specified limits:-

Range of Income
Rs. 50 Lakhs to Rs. 1 Crore Rs. 1 Crore to Rs. 2 Crores Rs. 2 crores to Rs. 5 crores Exceeding Rs. 5 Crores
10% 15% 25% 37%

Note: The enhanced surcharge of 25% or 37% is not levied, on income by way of dividend or from income chargeable to tax under sections 111A, 112, 112A and 115AD(1)(b). Hence, the maximum rate of surcharge on tax payable on such incomes shall be 15%. Also, the surcharge rate for AOP with all members as a company, shall be capped at 15%.

However, enhanced surcharge rate of 37% is not applicable for assessees opting for tax regime under section 115BAC (from Assessment Year 2024-25).

Further, the surcharge rate is nil if the total income of a specified fund as referred to in section 10(4D) includes any income in respect of securities as given under section 115AD(1)(a) (For Assessment Year 2024-25)

However, marginal relief is available from surcharge in following manner-

  i.  in case where net income exceeds Rs. 50 lakh but doesn`t exceed Rs. 1 Crore, the amount payable as income tax and surcharge shall not exceed the total amount payable as income tax on total income of Rs 50 Lakh by more than the amount of income that exceeds Rs 50 Lakhs.

 ii.  in case where net income exceeds Rs. 1 crore but doesn`t exceed Rs. 2 crore, marginal relief shall be available from surcharge in such a manner that the amount payable as income tax and surcharge shall not exceed the total amount payable as income-tax on total income of Rs. 1 crore by more than the amount of income that exceeds Rs. 1 crore.

 iii.  in case where net income exceeds Rs. 2 crores, marginal relief shall be available from surcharge in such a manner that the amount payable as income tax and surcharge shall not exceed the total amount payable as income-tax on total income of Rs. 2 crores by more than the amount of income that exceeds Rs. 2 crores.

iv. in case where net income exceeds Rs. 5 crores, marginal relief shall be available from surcharge in such a manner that the amount payable as income tax and surcharge shall not exceed the total amount payable as income-tax on total income of Rs. 5 crores by more than the amount of income that exceeds Rs. 5 crores. 

b. Health and Education Cess : Health and Education Cess is levied at the rate of 4% on the amount of income-tax plus surcharge. However, The Health and Education Cess is nil if the total income of a `specified fund` as referred to section 10(4D) includes any income in respect of securities as given under section 115AD(1)(a) (For Assessment Year 2024-25).

Notes:

(a) For Assessment Year 2023-24, a resident individual (whose net income does not exceed Rs. 5,00,000) can avail rebate under section 87A. It is deductible from income-tax before calculating education cess. The amount of rebate is 100 percent of income-tax or Rs.12,500, whichever is less.

(b) From Assessment Year 2024-25, a maximum rebate of Rs. 25,000 is allowed under section 87A, if the total income of a resident individual, who is opting for the new tax scheme under Section 115BAC(1A), is up to Rs. 7,00,000.

(c) Further, if the total income of the resident individual opting section 115BAC(1A) exceeds Rs. 7,00,000 and the tax payable on such income exceeds the difference between the total income and Rs. 7,00,000, he can claim a rebate with marginal relief to the extent of the difference between the tax payable on such total income and the amount of income by which it exceeds Rs. 7,00,000

(d) If an assessee has opted for new tax regime, the provisions of AMT shall not be applicable.

2. Partnership Firm

For the Assessment Years 2023-24 & 2024-25, a partnership firm (including LLP) is taxable at 30%.

Add:

(a) Surcharge : The amount of income-tax shall be increased by a surcharge at the rate of 12% of such tax, where total income exceeds one crore rupees. However, the surcharge shall be subject to marginal relief (where income exceeds one crore rupees, the total amount payable as income-tax and surcharge shall not exceed total amount payable as income-tax on total income of one crore rupees by more than the amount of income that exceeds one crore rupees).

(b) Health and Education Cess : The amount of income-tax and the applicable surcharge, shall be further increased by health and education cess calculated at the rate of four percent of such income-tax and surcharge

Alternate Minimum Tax (AMT)

A partnership firm is liable to pay Alternative Minimum Tax where tax payable by it, on total income computed as per normal provisions of the Act, is less than 18.5% of `adjusted total income`. In such a case the `adjusted total income` is taken as the income of the firm and it shall be liable to pay tax at the rate of 18.5% of such `adjusted total income`.

However, AMT is levied at the rate of 9% (plus surcharge and cess as applicable) in case of an assessee other than a company, being a unit of an International Financial Services Centre and deriving its income solely in convertible foreign exchange.

3. Local Authority

For the Assessment Years 2023-24 & 2024-25, a local authority is taxable at 30%.

Add:

(a)  Surcharge : The amount of income-tax shall be increased by a surcharge at the rate of 12% of such tax, where total income exceeds one crore rupees. However, the surcharge shall be subject to marginal relief (where income exceeds one crore rupees, the total amount payable as income-tax and surcharge shall not exceed total amount payable as income-tax on total income of one crore rupees by more than the amount of income that exceeds one crore rupees).

(b)  Health and Education Cess : The amount of income-tax and the applicable surcharge, shall be further increased by health and education cess calculated at the rate of four percent of such income-tax and surcharge.

Alternate Minimum Tax (AMT)

A Local Authority is liable to pay Alternative Minimum Tax where tax payable by it, on total income computed as per normal provisions of the Act, is less than 18.5% of `adjusted total income`. In such a case the `adjusted total income` is taken as the income of the firm and it shall be liable to pay tax at the rate of 18.5% of such `adjusted total income`.

However, AMT is levied at the rate of 9% (plus surcharge and cess as applicable) in case of a company, being a unit of an International Financial Services Centre and deriving its income solely in convertible foreign exchange.

4. Domestic Company

Income-tax rates applicable in case of domestic companies for assessment years 2023-24 and 2024-25 are as follows:

Domestic Company  
Assessment Year 2024-25 Assessment Year 2023-24
? Where its total turnover or gross receipt during the previous year 2020-21 does not exceed Rs. 400 crore NA 25%
? Where its total turnover or gross receipt during the previous year 2021-22 does not exceed Rs. 400 crore 25% NA
? Any other domestic company 30% 30%

Add:

(a) Surcharge : The amount of income-tax shall be increased by a surcharge at the rate of 7% of such tax, where total income exceeds one crore rupees but not exceeding ten crore rupees and at the rate of 12% of such tax, where total income exceeds ten crore rupees. The surcharge shall be subject to marginal relief, which shall be as under:

 (i)  Where income exceeds Rs. 1 crore but not exceeding Rs. 10 crore, the total amount payable as income-tax and surcharge shall not exceed total amount payable as income-tax on total income of Rs. 1 crore by more than the amount of income that exceeds Rs. 1 crore.

 (ii)  Where income exceeds Rs. 10 crore, the total amount payable as income-tax and surcharge shall not exceed total amount payable as income-tax on total income of Rs. 10 crore by more than the amount of income that exceeds Rs. 10 crore

(b) Health and Education Cess : The amount of income-tax and the applicable surcharge, shall be further increased by health and education cess calculated at the rate of four percent of such income-tax and surcharge.

Minimum Alternate Tax (MAT)

A domestic company is liable to pay Minimum Alternate Tax where tax payable by it, on total income computed as per normal provisions of the Act, is less than 15% of `book profit`. In such a case the `book profit` is taken as the income of the company and it shall be liable to pay tax at the rate of 15% of such `book profit`.

However, MAT is levied at the rate of 9% (plus surcharge and cess as applicable) in case of a company, being a unit of an International Financial Services Centre and deriving its income solely in convertible foreign exchange.

4.1. Special Tax rates applicable to a domestic company

The special Income-tax rates applicable in case of domestic companies are as follows:

 

Domestic Company
? Where it opted for section 115BA 25%
? Where it opted for Section 115BAA 22%
? Where it opted for Section 115BAB 15%

Surcharge : The rate of surcharge in case of a company opting for taxability under Section 115BAA or Section 115BAB shall be flat 10% irrespective of amount of total income.

Health and Education Cess: The amount of income-tax and the applicable surcharge, shall be further increased by health and education cess calculated at the rate of four percent of such income-tax and surcharge.

MAT : The domestic company who has opted for special taxation regime under Section 115BAA & 115BAB is exempted from provision of MAT. However, no exemption is available in case where section 115BA has been opted.

5. Foreign Company

Assessment Years 2023-24 and 2024-25

Nature of Income Tax Rate
Royalty received from Government or an Indian concern in pursuance of an agreement made with the Indian concern after March 31, 1961, but before April 1, 1976, or fees for rendering technical services in pursuance of an agreement made after February 29, 1964 but before April 1, 1976 and where such agreement has, in either case, been approved by the Central Government 50%
Any other income 40%

Add:

(a)  Surcharge: The amount of income-tax shall be increased by a surcharge at the rate of 2% of such tax, where total income exceeds one crore rupees but not exceeding ten crore rupees and at the rate of 5% of such tax, where total income exceeds ten crore rupees. However, the surcharge shall be subject to marginal relief, which shall be as under:

 (i)  Where income exceeds one crore rupees but not exceeding ten crore rupees, the total amount payable as income-tax and surcharge shall not exceed total amount payable as income-tax on total income of one crore rupees by more than the amount of income that exceeds one crore rupees.

 (ii)  Where income exceeds ten crore rupees, the total amount payable as income-tax and surcharge shall not exceed total amount payable as income-tax on total income of ten crore rupees by more than the amount of income that exceeds ten crore rupees.

(b)  Health and Education Cess : The amount of income-tax and the applicable surcharge, shall be further increased by health and education cess calculated at the rate of four percent of such income-tax and surcharge.

Minimum Alternate Tax (MAT)

A foreign company is liable to pay Minimum Alternate Tax where tax payable by it, on total income computed as per normal provisions of the Act, is less than 15% of `book profit`. In such a case the `book profit` is taken as the income of the company and it shall be liable to pay tax at the rate of 15% of such `book profit`.

However, the provisions of MAT do not apply in case of foreign companies if it does not have permanent establishment (PE) in India or opts for presumptive taxation scheme of Section 44B, Section 44BB, Section 44BBA or Section 44BBB.

6. Co-operative Society

Assessment Years 2023-24 and 2024-25

Taxable income >Tax Rate>
Up to Rs. 10,000 10%
Rs. 10,000 to Rs. 20,000 20%
Above Rs. 20,000 30%

Add:

(a) (a) Surcharge: The amount of income-tax shall be increased by a surcharge at the rate of 7% of such tax, where total income exceeds one crore rupees but not exceeding ten crore rupees and at the rate of 12% of such tax, where total income exceeds ten crore rupees. However, the surcharge shall be subject to marginal relief, which shall be as under:

(i) Where income exceeds one crore rupees but not exceeding ten crore rupees, the total amount payable as income-tax and surcharge shall not exceed total amount payable as income-tax on total income of one crore rupees by more than the amount of income that exceeds one crore rupees.

(ii) Where income exceeds ten crore rupees, the total amount payable as income-tax and surcharge shall not exceed total amount payable as income-tax on total income of ten crore rupees by more than the amount of income that exceeds ten crore rupees.

(b) Health and Education Cess: The amount of income-tax and the applicable surcharge, shall be further increased by health and education cess calculated at the rate of four percent of such income-tax and surcharge.

Note:

(a) A co-op. society is liable to pay Alternate Minimum Tax where tax payable by it, on total income computed as per normal provisions of the Act, is less than 15% of `adjusted total income`. In such a case the `adjusted total income` is taken as the income of co-op. society and it shall be liable to pay tax at the rate of 15% of such `adjusted total income`.

(b) If the assessee is a unit located in an International Financial Services Centre and derives its income solely in convertible foreign exchange, the rate of AMT will be 9%.

6.1. Alternative Tax regime for Co-operative societies

Income-tax Act allows a co-operative society to choose from the following alternative taxation regime subject to fulfilment of prescribed conditions:

Section Conditions Tax rate

Section 115BAE

  •  The co-operative society is set up and registered on or after 01-04-2023;

  •  It is engaged in manufacture or production of any article or thing;

  •  It commences manufacturing on or before 31-03-2024 ; and

  •  It does not claim specified exemption, incentive or deduction.

15% (Income from manufacturing activities)
Section 115BAD If co-operative society does not claim specified exemption, incentive or deduction 22%

Add:

(a) Surcharge: The surcharge is levied at a rate of 10% on the amount of income-tax irrespective of the total income of such co-operative society.

(b) Health & Education Cess: The amount of income-tax and the applicable surcharge, shall be further increased by health and education cess calculated at the rate of 4% of such income-tax and surcharge.

Note:

(a) If a co-operative society has exercised the option of Section 115BAD or Section 115BAE, the provisions of AMT shall not be applicable. Further, the provisions regarding computation and carry forward of AMT credit shall also be not applicable.

[As amended by Finance Act, 2023]

Rates Of Income Tax Assessment year : 2023-24 Previous year : 2022-23

1. For resident Senior Citizens. (Age above 60 Years)

Old Tax Slab Rate Tax Slab as per (Sec 115BAC) Rate
Upto Rs 3,00,000 NIL Upto Rs 2,50,000 NIL
Rs 3,00,001 - Rs 5,00,000 5% Rs 2,50,001 - Rs 5,00,000 5%
Rs 5,00,001 - Rs 10,00,000 20% Rs 5,00,001 - Rs 7,50,000 10%
Rs 7,50,001 - Rs 10,00,000 15%
Above Rs 10,00,000 30% Rs 10,00,001 - Rs 12,50,000 20%
Rs 12,50,001 - Rs 15,00,000 25%
Above Rs 15,00,000 30%

2. For resident Super Senior Citizens. (Age above 80 Years)

Old Tax Slab Rate Tax Slab as per ( Sec 115BAC) Rate
Upto Rs 5,00,000 NIL Upto Rs 2,50,000 NIL
Rs 2,50,001 - Rs 5,00,000 5%
Rs 5,00,001 - Rs 10,00,000 20% Rs 5,00,001 - Rs 7,50,000 10%
Rs 7,50,001 - Rs 10,00,000 15%
Above Rs 10,00,000 30% Rs 10,00,001 - Rs 12,50,000 20%
Rs 12,50,001 - Rs 15,00,000 25%
Above Rs 15,00,000 30%

3. Individuals, [other than those mentioned above, HUF, AOP/BOI (other than co-operative societies).

Old    Tax Slab Rate Tax Slab as per (Sec 115BAC) Rate
Upto Rs 2,50,000 NIL Upto Rs 2,50,000 NIL
Rs 2,50,001 - Rs 5,00,000 5% Rs 2,50,001 - Rs 5,00,000 5%
Rs 5,00,001 - Rs 10,00,000 20% Rs 5,00,001 - Rs 7,50,000 10%
Rs 7,50,001 - Rs 10,00,000 15%
Above Rs 10,00,000 30% Rs 10,00,001 - Rs 12,50,000 20%
Rs 12,50,001 - Rs 15,00,000 25%
Above Rs 15,00,000 30%

Note: Rebate u/s 87A, in which resident individuals are allowed rebate (if their taxable income does not exceed Rs. 5 lakh) equal to 100% of income tax or Rs. 12,500 whichever less.

Surcharge on Income Tax computed on Other Incomes :
  • 10% for Individual having taxable Income (Including Dividend & Income u/s 111A & 112A) exceeding 50 Lacs upto 1 Crore
  • 15% for Individual having taxable Income (Including Dividend & Income u/s 111A & 112A) exceeding 1 Crore but upto two 2 Crore
  • 25% for Individual having taxable Income (Excluding Dividend & Income u/s 111A & 112A) exceeding 2 Crore but upto 5 Crore
  • 37% for Individual having taxable Income (Excluding Dividend & Income u/s 111A & 112A) exceeding 5 Crore
Surcharge on Income Tax computed on Dividend Income & Income taxable u/s 111A & 112A :
  • 10% for Individual having taxable Income (Including Dividend & Income u/s 111A & 112A) exceeding 50 Lacs upto 1 Crore
  • 15% for Individual having taxable Income (Including Dividend & Income u/s 111A & 112A) exceeding 1 Crore but upto two 2 Crore
  • 15% for Individual having taxable Income (Excluding Dividend & Income u/s 111A & 112A) exceeding 2 Crore but upto 5 Crore
  • 15% for Individual having taxable Income (Excluding Dividend & Income u/s 111A & 112A) exceeding 5 Crore

Health and Education Cess: 4% on the amount of Tax plus surcharge

Firms
  • Income tax : 30%.
  • Surcharge : 12% of the Income Tax, where total taxable income is more than Rs. 1 crore.

Health and Education Cess: 4% on the amount of Tax plus surcharge.

Companies

(A) Domestic Companies
  • Income tax :
  • If opted for Section 115BA (in case turnover or gross receipt does not exceed Rs 400 crore in the FY 2019-20) - 25%
  • If opted for Section 115BAA (in case assessee is not claming Profit linked deductions, unabsorbed depreciation & Losses) - 22%
  • If opted for Section 115BAB (for new manufacturing companies) -15%
  • Any other domestic company -30%
  • MAT- 15%
  • Surcharge: 7% if the taxable income exceeds Rs. 1 crore & 12% if the taxable income exceeds 10 crores
  • However, the rate of surcharge in case of a company opting for taxability under Section 115BAA or Section 115BAB shall be 10% irrespective of amount of total income

Health and Education Cess: 4% on the amount of Tax plus surcharge

(B) Foreign Companies
Income tax :
  • 40% (in general )
  • 50% (Royalty received from Government or an Indian concern in pursuance of an agreement made with the Indian concern after March 31, 1961, but before April 1, 1976, or fees for rendering technical services in pursuance of an agreement made after February 29, 1964 but before April 1, 1976 and where such agreement has, in either case, been approved by the Central Government)
Surcharge :
  • 2% if the taxable income exceeds Rs. 1 crore & 5% if the taxable income exceeds 10 crores
Health and Education Cess: 4% on the amount of Tax plus surcharge
Cooperative Socities (Under Old Regime)
Upto Rs. 10,000 10%
Rs. 10,001 to Rs. 20,000 20%
Rs. 20,001 to Above 30%

Surcharge : 12% of the Income Tax, where total taxable income is more than Rs. 1 crore.

Health and Education Cess: 4% on the amount of Tax plus surcharge

Cooperative Socities (Under New Regime) -Section 115BAC

Income tax : Flat rate of 22%

Surcharge : 10% of the Income Tax

Health and Education Cess: 4% on the amount of Tax plus surcharge

Local Authorities

Income tax : 30%.

Surcharge : 12% of the Income Tax, where total taxable income is more than Rs. 1 crore

Health and Education Cess: 4% on the amount of Tax plus surcharge

Rates Of Income Tax Assessment year : 2022-23 Previous year : 2021-22

1. For resident Senior Citizens. (Age above 60 Years)

Old Tax Slab Rate Tax Slab as per (Sec 115BAC) Rate
Upto Rs 3,00,000 NIL Upto Rs 2,50,000 NIL
Rs 3,00,001 - Rs 5,00,000 5% Rs 2,50,001 - Rs 5,00,000 5%
Rs 5,00,001 - Rs 10,00,000 20% Rs 5,00,001 - Rs 7,50,000 10%
Rs 7,50,001 - Rs 10,00,000 15%
Above Rs 10,00,000 30% Rs 10,00,001 - Rs 12,50,000 20%
Rs 12,50,001 - Rs 15,00,000 25%
Above Rs 15,00,000 30%

2. For resident Super Senior Citizens. (Age above 80 Years)

Old Tax Slab Rate Tax Slab as per ( Sec 115BAC) Rate
Upto Rs 5,00,000 NIL Upto Rs 2,50,000 NIL
Rs 2,50,001 - Rs 5,00,000 5%
Rs 5,00,001 - Rs 10,00,000 20% Rs 5,00,001 - Rs 7,50,000 10%
Rs 7,50,001 - Rs 10,00,000 15%
Above Rs 10,00,000 30% Rs 10,00,001 - Rs 12,50,000 20%
Rs 12,50,001 - Rs 15,00,000 25%
Above Rs 15,00,000 30%

3. Individuals, [other than those mentioned above, HUF, AOP/BOI (other than co-operative societies).

Old    Tax Slab Rate Tax Slab as per (Sec 115BAC) Rate
Upto Rs 2,50,000 NIL Upto Rs 2,50,000 NIL
Rs 2,50,001 - Rs 5,00,000 5% Rs 2,50,001 - Rs 5,00,000 5%
Rs 5,00,001 - Rs 10,00,000 20% Rs 5,00,001 - Rs 7,50,000 10%
Rs 7,50,001 - Rs 10,00,000 15%
Above Rs 10,00,000 30% Rs 10,00,001 - Rs 12,50,000 20%
Rs 12,50,001 - Rs 15,00,000 25%
Above Rs 15,00,000 30%

Note: Rebate u/s 87A, in which resident individuals are allowed rebate (if their taxable income does not exceed Rs. 5 lakh) equal to 100% of income tax or Rs. 12,500 whichever less.

Surcharge on Income Tax computed on Other Incomes :
  • 10% for Individual having taxable Income (Including Dividend & Income u/s 111A & 112A) exceeding 50 Lacs upto 1 Crore
  • 15% for Individual having taxable Income (Including Dividend & Income u/s 111A & 112A) exceeding 1 Crore but upto two 2 Crore
  • 25% for Individual having taxable Income (Excluding Dividend & Income u/s 111A & 112A) exceeding 2 Crore but upto 5 Crore
  • 37% for Individual having taxable Income (Excluding Dividend & Income u/s 111A & 112A) exceeding 5 Crore
Surcharge on Income Tax computed on Dividend Income & Income taxable u/s 111A & 112A :
  • 10% for Individual having taxable Income (Including Dividend & Income u/s 111A & 112A) exceeding 50 Lacs upto 1 Crore
  • 15% for Individual having taxable Income (Including Dividend & Income u/s 111A & 112A) exceeding 1 Crore but upto two 2 Crore
  • 15% for Individual having taxable Income (Excluding Dividend & Income u/s 111A & 112A) exceeding 2 Crore but upto 5 Crore
  • 15% for Individual having taxable Income (Excluding Dividend & Income u/s 111A & 112A) exceeding 5 Crore

Health and Education Cess: 4% on the amount of Tax plus surcharge

Firms
  • Income tax : 30%.
  • Surcharge : 12% of the Income Tax, where total taxable income is more than Rs. 1 crore.

Health and Education Cess: 4% on the amount of Tax plus surcharge.

Companies

(A) Domestic Companies
  • Income tax :
  • If opted for Section 115BA (in case turnover or gross receipt does not exceed Rs 400 crore in the FY 2019-20) - 25%
  • If opted for Section 115BAA (in case assessee is not claming Profit linked deductions, unabsorbed depreciation & Losses) - 22%
  • If opted for Section 115BAB (for new manufacturing companies) -15%
  • Any other domestic company -30%
  • MAT- 15%
  • Surcharge: 7% if the taxable income exceeds Rs. 1 crore & 12% if the taxable income exceeds 10 crores
  • However, the rate of surcharge in case of a company opting for taxability under Section 115BAA or Section 115BAB shall be 10% irrespective of amount of total income

Health and Education Cess: 4% on the amount of Tax plus surcharge

(B) Foreign Companies
Income tax :
  • 40% (in general )
  • 50% (Royalty received from Government or an Indian concern in pursuance of an agreement made with the Indian concern after March 31, 1961, but before April 1, 1976, or fees for rendering technical services in pursuance of an agreement made after February 29, 1964 but before April 1, 1976 and where such agreement has, in either case, been approved by the Central Government)
Surcharge :
  • 2% if the taxable income exceeds Rs. 1 crore & 5% if the taxable income exceeds 10 crores
Health and Education Cess: 4% on the amount of Tax plus surcharge
Cooperative Socities (Under Old Regime)
Upto Rs. 10,000 10%
Rs. 10,001 to Rs. 20,000 20%
Rs. 20,001 to Above 30%

Surcharge : 12% of the Income Tax, where total taxable income is more than Rs. 1 crore.

Health and Education Cess: 4% on the amount of Tax plus surcharge

Cooperative Socities (Under New Regime) -Section 115BAC

Income tax : Flat rate of 22%

Surcharge : 10% of the Income Tax

Health and Education Cess: 4% on the amount of Tax plus surcharge

Local Authorities

Income tax : 30%.

Surcharge : 12% of the Income Tax, where total taxable income is more than Rs. 1 crore

Health and Education Cess: 4% on the amount of Tax plus surcharge

Income tax slabs under the new tax regime for all individuals for FY 2020-21 (AY 2021-22)

Income Tax Slab Tax Rate
Up to Rs 2.5 lakh NIL
Rs 2.5 lakh to Rs 5 lakh 5% (Tax rebate of Rs 12,500 available under section 87A)
Rs 5 lakh to Rs 7.5 lakh 10%
Rs 7.5 lakh to Rs 10 lakh 15%
Rs 10 lakh to Rs 12.5 lakh 20%
Rs 12.5 lakh to Rs 15 lakh 25%
Rs 15 lakh and above 30%
  • The tax calculated on the basis of such rates will be subject to health and education cess of 4%.

  • Any individual opting to be taxed under the new tax regime from FY 2020-21 onwards will have to give up certain exemptions and deductions.

  • Here is the list of exemptions and deductions that a taxpayer will have to give up while choosing the new tax regime.

    1. Leave Travel Allowance (LTA)

    2. House Rent Allowance (HRA)

    3. Conveyance

    4. Daily expenses in the course of employment

    5. Relocation allowance

    6. Helper allowance

    7. Children education allowance

    8. Other special allowances [Section 10(14)]

    9. Standard deduction

    10. Professional tax

    11. Interest on housing loan (Section 24)

    12. Chapter VI-A deduction (80C,80D, 80E and so on) (Except Section 80CCD(2) and 80JJA)

  • Points to remember while opting for the new tax regime:

    1. Option to be exercised on or before the due date of filing return of income for AY 2021-22

    2. In case a taxpayer has a business income and exercised the option, he/she can withdraw from the option only once. A business taxpayer withdrawing from the optional tax regime has to follow the regular income tax slabs.

According to the current income tax laws in India, the income tax rate on resident individuals varies based on their age. There are different tax slabs applicable to the individuals for the financial year 2018-19 and 2019-20. For instance, a resident individual, aged below 60 years, with an income less than Rs 2.5 lacs is exempt from paying income tax.

Given below are the tables for the latest income tax slabs for FY 2018-19 and FY 2019-20.

Income Tax Slabs & Rates for Individual Tax Payers & HUF (Less Than 60 Years Old) for FY 2019-20 – Part I

Income Tax Slab Tax Rate for Individual & HUF Below the Age Of 60 Years
Up to ? 2,50,000* Nil
? 2,50,001 to ? 5,00,000 5% of total income exceeding ? 2,50,000
? 5,00,001 to ? 10,00,000 ? 12,500 + 20% of total income exceeding ? 5,00,000
Above ? 10,00,000 ? 1,12,500 + 30% of total income exceeding ? 10,00,000
  • No tax for individuals with income less than ? 2,50,000

  • 0%-5% tax with income ? 2.5 lacs to 5 lacs for different age groups

  • 20% tax with income ? 5 lacs to 10 lacs

  • 30% tax with income above ? 10 lacs

  • A tax rebate under section 87A is allowed to individual taxpayers a maximum amount of:

    – Rs 2,500 for total income up to Rs 3.5 lakh for FY 2018-19

    – Rs 12,500 for total income up to Rs 5 lakh for FY 2019-20

  • Investments upto ? 1.5 lacs under Sec 80C can save ? 46,800 in taxes.

Note : An additional 4% Health & education cess will be applicable on the tax amount calculated as above.

Let’s understand the tax calculation for rebate with the help of an example:

Source of income (FY 2019-20) Income (Rs)
Salary (6,50,000)
Less: Standard deduction ( 50,000) 6,00,000
Interest on fixed deposit 50,000
Gross total income 6,50,000
Less: Deduction under section 80C 1,50,000
Total income 5,00,000
Income-tax (@ 5% from Rs 2.5 to 5 lakh) 12,500
Less: Rebate u/s 87A 12,500
NIL

Income Tax Slabs for Senior Citizens (60 Years Old Or More but Less than 80 Years Old) for FY 2019-20 – Part II

Income Tax Slabs Tax Rate for Senior cetizens aged 60 Years But Less than 80 Years
Income up to Rs 3,00,000* No tax
Income from Rs 3,00,000 – Rs 5,00,000 5%
Income from Rs 5,00,000 – 10,00,000 20%
Income more than Rs 10,00,000 30%

Note : An additional 4% Health & education cess will be applicable on the tax amount calculated as above.

Let’s understand the tax calculation for rebate with the help of an example:

Source of income (FY 2019-20) Income (Rs)
Salary (4,00,000)
Less: Standard deduction ( 50,000) 3,50,000
Income from house property 2,50,000
Interest on fixed deposit 50,000
Gross total income 6,50,000
Less: Deduction under section 80C 1,50,000
Total income 5,00,000
Income-tax (@ 5% from Rs 3 to 5 lakh) 10,000
Less: Rebate u/s 87A 10,000
NIL

Income Tax Slabs for Super Senior Citizens(80 Years Old Or More) for FY 2019-20 – Part III

Income Tax Slabs Tax Rate for Super Senior Citizens (Aged 80 Years And Above)
Income up to Rs 5,00,000* No tax
Income from Rs 5,00,000 – 10,00,000 20%
Income more than Rs 10,00,000 30%

Note : An additional 4% Health & education cess will be applicable on the tax amount calculated as above.

Let’s understand the tax calculation for a rebate with the help of an example:

Source of income (FY 2019-20) Income (Rs)
Salary (3,50,000)
Less: Standard deduction ( 50,000) 3,00,000
Income from house property 2,50,000
Interest on fixed deposit 1,00,000
Gross total income 6,50,000
Less: Deduction under section 80C 1,50,000
Total income 5,00,000
Income-tax (nil below Rs 5 lakh) NIL
Less: Rebate u/s 87A NIL
NIL

Surcharge applicable to the individuals covered in Part I, II and III:

Income limit Surcharge Rate on the amount of income tax
Net income exceeds Rs 50 lakh but doesn’t exceed Rs 1 crore 10%
Net income above Rs 1 crore but doesn’t exceed Rs 2 crore 15%
Net income exceeds Rs 2 crore but doesn’t exceed Rs 5 crore 25%
Net income exceeds Rs 5 crore 37%

Income Tax Slabs for Domestic Companies for FY 2019-20 – Part IV

Turnover Particulars Tax Rate
Gross turnover upto 400 Cr. in the FY 2017-18 25%
Gross turnover exceeding 400 Cr. in the FY 2017-18 30%
Where the company opted for Section 115BA 25%
GWhere the company opted for Section 115BAA 22%
Where the company opted for Section 115BAB 15%

In addition cess and surcharge is levied as follows:

Cess: 4% of corporate tax

Surcharge applicable:

Income Limit Surcharge Rate on the amount of income tax
Net income exceeds Rs.1 Crore but doesn’t exceed Rs.10 Crore 7%
Net income exceeds Rs.10 Crore 12%

However, the rate of surcharge in case of a company opting for taxability under Section 115BAA or Section 115BAB shall be 10% irrespective of amount of total income.

Tax slabs and tax rates for AY 2019-20 (FY 2018-19)

Income Tax Slabs for Individual Tax Payers & HUF (Less Than 60 Years Old) for FY 2018-19 – Part I

Income Tax Slabs Tax Rate for Individual & HUF Below the Age Of 60 Years
Up to ? 2,50,000* Nil
? 2,50,001 to ? 5,00,000 5% of total income exceeding ? 2,50,000
? 5,00,001 to ? 10,00,000 ? 12,500 + 20% of total income exceeding ? 5,00,000
Above ? 10,00,000 ? 1,12,500 + 30% of total income exceeding ? 10,00,000

Note : An additional 4% Health & education cess will be applicable on the tax amount calculated as above.

Income Tax Slabs for Senior Citizens (60 Years Old Or More but Less than 80 Years Old) for FY 2018-19 – Part II

Income Tax Slabs Tax Rate for 60 Years Old Or More but Less than 80 Years Old
Income up to Rs 3,00,000* No tax
Income from Rs 3,00,000 – Rs 5,00,000 5%
Income from Rs 5,00,000 – 10,00,000 20%
Income more than Rs 10,00,000 30%

Note : An additional 4% Health & education cess will be applicable on the tax amount calculated as above.

Income Tax Slabs for Super Senior Citizens(80 Years Old Or More) for FY 2018-19 – Part III

Income Tax Slabs Tax Rate for Super Senior Citizens (Aged 80 Years And Above)
Income up to Rs 5,00,000* No tax
Income from Rs 5,00,000 – 10,00,000 20%
Income more than Rs 10,00,000 30%

Note: An additional 4% Health & education cess will be applicable on the tax amount calculated as above.

Surcharge applicable to the individuals covered in Part I, II and III:

Income limit Surcharge Rate on the amount of income tax
Net income exceeds Rs.50 Lakhs but doesn’t exceed Rs. 1 Crore 10%
Net income exceeds Rs.1 Crore  15%

Income Tax Slabs for Domestic Companies for FY 2018-19 – Part IV

Turnover Particulars Tax Rate
Gross turnover upto 250 Cr. in the FY 2016-17 25%
Gross turnover exceeding 250 Cr. in the FY 2016-17 30%

In addition cess and surcharge is levied as follows: Cess: 4% of corporate tax

Surcharge applicable:

Income Limit Surcharge Rate on the amount of income tax
Net income exceeds Rs.1 Crore but doesn’t exceed Rs.10 Crore 7%
Net income exceeds Rs.10 Crore 12%
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