Resident & Non-Resident Individuals (all age group) for FY 2023-24 & FY 2024-25 under the New Tax Regime under section 115BAC
| Net Income Range | FY 2023-24 (AY 2024-25) | FY 2024-25* (AY 2025-26) |
| Upto Rs. 3,00,000 | NIL | NIL |
| From Rs. 3,00,001 to Rs. 6,00,000 | 5% | 5% |
| From Rs. 6,00,001 to Rs.9,00,000 | 10% | 10% |
| From Rs. 9,00,001 to Rs. 12,00,000 | 15% | 15% |
| From Rs. 12,00,001 to Rs. 15,00,000 | 20% | 20% |
| Above Rs. 15,00,000 | 30% | 30% |
Income Tax Slabs for Resident Individuals for FY 2023-24 & FY 2024-25 under the Old Tax Regime
| Resident Individuals | FY 2023-24 (AY 2024-25)* | ||
| Net Income Range | Resident Individuals (Age less than 60 years) | Resident Senior Citizens (More than 60 but less than 80 years) | Resident Super Senior Citizens (80 years and above) |
| Upto Rs. 2,50,000 | NIL | NIL | NIL |
| From Rs. 2,50,001 to Rs. 3,00,000 | 5% | NIL | NIL |
| From Rs. 3,00,001 to Rs.5,00,000 | 5% | 5% | NIL |
| From Rs. 5,00,001 to Rs. 10,00,000 | 20% | 20% | 20% |
| Above Rs. 10,00,000 | 30% | 30% | 30% |
Income Tax Slabs for Non-Resident Individuals (of all age group) for FY 2023-24 & FY 2024-25 under the Old Tax Regime
| Net Income Range | FY 2023-24 (AY 2024-25) | FY 2024-25* (AY 2025-26) |
| Upto Rs. 2,50,000 | NIL | NIL |
| From Rs. 2,50,001 to Rs. 3,00,000 | 5% | 5% |
| From Rs. 3,00,001 to Rs.5,00,000 | 5% | 5% |
| From Rs. 5,00,001 to Rs. 10,00,000 | 20% | 20% |
| Above Rs. 10,00,000 | 30% | 30% |
Income Tax Slabs for HUF (Resident/Non-Resident) under Old & New Regime for FY 2023-24 (AY 2024-25) & FY 2024-25* (AY 2025-26)
| Old Tax Regime | New Tax Regime u/s 115BAC | ||
| Net Income Range | Income Tax Rate | Net Income Range | Income Tax Rate |
| Up to Rs. 2,50,000 | Nil | Up to Rs. 3,00,000 | Nil |
| Rs. 2,50,001 – Rs. 5,00,000 | 5% | Rs. 3,00,001 – Rs.6,00,000 | 5% |
| Rs. 5,00,001 – Rs.10,00,000 | 20% | Rs. 6,00,001 – Rs. 9,00,000 | 10% |
| Above Rs. 10,00,000 | 30% | Rs. 9,00,001 – Rs.12,00,000 | 15% |
| Rs. 12,00,001 – Rs. 15,00,000 | 20% | ||
| Above Rs. 15,00,000 | 30% | ||
Income Tax Slabs for AOP, BOI and Artificial Juridical Person under Old & New Regime for FY 2023-24 (AY 2024-25) & FY 2024-25 (AY 2025-26)
| Old Tax Regime | New Tax Regime u/s 115BAC* | ||
| Net Income Range | Income Tax Rate | Net Income Range | Income Tax Rate |
| Up to Rs. 3,00,000 | Nil | Up to Rs. 3,00,000 | Nil |
| Rs. 3,00,001 – Rs. 5,00,000 | 5% | Rs. 3,00,001 – Rs. 6,00,000 | 5% |
| Rs. 5,00,001 – Rs. 10,00,000 | 20% | Rs. 6,00,001 – Rs. 9,00,000 | 10% |
| Above Rs. 10,00,000 | 30% | Rs. 9,00,001 – Rs. 12,00,000 | 15% |
| Rs. 12,00,001 – Rs. 15,00,000 | 20% | ||
| Above Rs. 15,00,000 | 30% | ||
Income Tax Rates for Partnership Firm & LLP for FY2023-24 (AY 2024-25) & FY2024-25 (AY 2025-26)
| Partnership firm/ LLP | FY 2023-24 | FY 2024-25 * |
| 30% of Net Profit | 30% | 30% |
Income Tax Slab for Co-operative Societies for FY2023-24 (AY 2024-25) & FY2024-25 (AY 2025-26) under old regime
| Net Income Range | Rate of Income-tax |
| Up to Rs. 10,000 | 10% |
| Rs. 10,001 to Rs. 20,000 | 20% |
| Above Rs. 20,000 | 30% |
The Income tax rate for Co-operative Societies under Alternate Tax Regime under section 115BAD (applicable from FY 20-21)
If a cooperative society opts for the alternate tax regime as per section 115BAD. In that case, the Income shall be taxable at 22%, and a surcharge shall be levied at 10% of the income tax, irrespective of the Income of such cooperative society.
The Income Tax rate for for Co-operative Societies Alternate tax regime under section 115BAE (applicable from FY 23-24)
If a cooperative society opts for the alternate tax regime as per section 115BAE, the Income shall be taxable at the below-mentioned rates:
| Type of Income of Co-operative Societies | Tax Rates |
| Income from manufacturing activities | 15% |
| Income from non-manufacturing activities | 22% |
| Short-term capital gain from transfer of depreciable assets | 15% |
| Short-term capital gain from transfer of non-depreciable assets | 22% |
| The excess profit derived due to arranged affairs | 30% |
| Special Incomes | Special tax rates |
The surcharge shall further increase the tax calculated on the total Income. The surcharge shall be levied at 10% of the total income tax. The income tax and the tariff shall be further increased by a health and education cess calculated at 4% of such income tax and surcharge.
Income Tax Rates for Domestic Company for FY 2023-24 (AY 2024-25) & FY 2024-25 (AY 2025-26)
| Income Tax Rates for Domestic Company | FY 2023-24 (AY 2024-25) | |
| Company opts for section 115BAB (not covered in sections 115BAA and 115BA) & is registered on or after October 1, 2019, and has commenced manufacturing on or before 31st March 2024 and subject to the conditions specified in the section. Applicable from AY 2020-21 and onwards. | 15% | |
| Company opts for Section 115BAA, wherein the total income of a company has been calculated without claiming specified deductions, incentives, or exemptions and additional depreciation as specified in the section.Applicable from AY 2020-21 and onwards. | 22% | |
| The company opts for section 115BA registered on or after March 1, 2016 and engaged in the manufacture of any article or thing and does not claim the deduction as specified in the section.Applicable from AY 2017-18 and onwards. | 25% | |
| Turnover or gross receipt of the company is less than Rs. 400 crore in the previous year 2020-21 | 25% | |
| Any other domestic company | 30% | |
Income Tax Rates for Foreign Company under Old and New Regime for both FY 2023-24 (AY 2024-25)& FY 2024-25 (AY 2025-26)
| Nature of Income | Tax Rate |
| Royalty received or fees for technical services from government or any indian concern under an agreement made before April 1, 1976 and approved by central government | 50% |
| Any other income | 40% |
Surcharge
Surcharge is levied on the amount of income-tax at following rates if total income of an assessee exceeds specified limits:-
If an individual’s net taxable income exceeds a specified level, then a surcharge is levied. The surcharge is levied on the income tax payable amount before the levy of cess. According to income tax laws, a surcharge is applicable if an individual’s taxable income exceeds Rs 50 lakh.
| Rate of Surcharge for Individuals, HUF, AOP,BOI | |||||||
| Financial Year 2023-24 (AY 2024-25) | Financial Year 2024-25 (AY 2025-26)** | ||||||
| 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%* |
**No change as per Interim Budget 2024 for FY 2024-25.
Surcharge Rates Applicable to Different Taxpayers
The rate of the surcharge for individuals is different from those of other taxpayers. Below is the table with the rates of surcharge on income tax for various type of taxpayers:
- Partnership Firms, LLPs: If the income during a specific assessment year is Rs.1 crore or more , surcharge on income tax is 12 percent.
- Co-opeartive Societies : Surcharge rate shall be flat 10%.
- Domestic companies (income more than Rs.1 crore but less than Rs.10 crores): surcharge on income tax is 7 percent.
- Domestic companies (income more than Rs.10 crores): surcharge on income tax is 12 percent.
- If Domestic Company opting for taxability u/s 115BAA or Section 115BAB : surcharge on Income Tax is 10%
- Foreign companies (income more than Rs.1 crore but less than Rs.10 crores): 2 percent on income tax is billed as surcharge.
- Foreign companies (income more than Rs.10 crores): 5 percent of income tax is billed as surcharge.
Note:
(1) The surcharge rate of 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) In case of an association of persons consisting of only companies as its members, the rate of surcharge on the amount of Income-tax shall be maximum 15% (applicable w.e.f AY 2023-24).
(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).
(4) In Budget 2023, Highest surcharge rate was reduced to 25% from 37% under the new tax regime.
Marginal Relief
Where the amount of surcharge on income tax payable exceeds the increase in income over the specified limit, the benefit of marginal relief is given by the Income Tax Law to the Taxpayer.
Rebate u/s 87A
87A rebate offers benefits from your tax liability. Rebate under section 87A can be claimed only by Resident Individual when his/her taxable income does not exceed the prespecified limit for the given financial year. It is not available to Non-Resident Individual
- 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.
- Individuals with a net taxable income of up to ₹ 7 lakh will be eligible for higher tax rebate upto Rs.25000/- u/s 87A under the new tax regime. Such higher rebate is also subject to marginal relief (For Assessment Year 2024-25).
- It is deductible from income-tax before calculating education cess.
Health & Education Cess
Health and Education Cess is levied at the rate of 4% on the amount of income-tax plus surcharge.
Changes in Union Budget 2023
- The basic exemption limit hiked to Rs 3 lakh from Rs 2.5 lakh under the New Tax regime.
- New tax regime becomes the default option for taxpayers. However, they have the option to opt for the old tax regime before filing their return of income.
- In new tax regime Standard deduction of Rs 50,000 was introduced for salaried and pensioners under the new tax regime
- Rebate under Section 87A increased under the new tax regime for taxable incomes not exceeding Rs 7 lakh. Thus, individuals whose taxable income does not exceed Rs 7 lakh will not have to pay any taxes if they opt for the new tax regime in FY 2023-24 along with marginal relief if applicable in case their Income exceeds slightly by Rs.7 lakh.
- Highest surcharge rate was reduced to 25% from 37% under the new tax regime.
- 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. Financial Year 2023-24.
