Important Keyword: Budget 2021, Income Tax, Income Tax Filing.
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Income Tax Slabs and Rates
Every year, the finance minister unveils the Union Budget on February 1st, marking a significant event in India’s fiscal calendar. This pivotal moment sets the stage for the financial year ahead, dictating new tax structures and regulations that will shape economic activities and individual finances.
Following the Budget announcement, revised income tax slabs and rates come into effect for the subsequent financial year. This dynamic adjustment reflects the government’s ongoing efforts to fine-tune taxation policies in alignment with broader economic goals and societal needs.
Let us understand the income tax slabs under old tax regime and new tax regime for FY 2023-24 i.e., AY 2024-25:
Income Tax Slab under Old Tax Regime
For Individuals/HUFs below the age of 60 years
| Income Tax Slab | Income Tax Rate |
| Up to INR 2,50,000 | NIL |
| INR 2,50,001 to INR 5,00,000 | 5% above INR 2,50,000 |
| INR 5,00,001 to INR 10,00,000 | INR 12,500 + 20% above INR 5,00,000 |
| Above INR 10,00,000 | INR 1,12,500 + 30% above INR 10,00,000 |
For Senior Citizens (Individuals/HUFs between the age of 60 years-80 years)
| Income Tax Slab | Income Tax Rate |
| Up to INR 3,00,000 | NIL |
| INR 3,00,001 to INR 5,00,000 | 5% above INR 3,00,000 |
| INR 5,00,001 to INR 10,00,000 | INR 10,000 + 20% above INR 5,00,000 |
| Above INR 10,00,000 | INR 1,10,000 + 30% above INR 10,00,000 |
For Super Senior Citizens (Individuals/HUFs above the age of 80 years)
| Income Tax Slab | Income Tax Rate |
| Up to INR 5,00,000 | NIL |
| INR 5,00,001 to INR 10,00,000 | 20% above INR 5,00,000 |
| Above INR 10,00,000 | INR 1,00,000 + 30% above INR 10,00,000 |
An extra 4% Health and Educational Cess is levied on the calculated tax amount to fund essential health and education initiatives. Additionally, the surcharge, which varies based on income brackets, is applied to the income tax. Here are the surcharge rates for individuals/HUFs who choose the old tax regime:
| Income Range | INR 50 lakhs to INR 1 Cr. | INR 1 Cr. to INR 2 Cr. | INR 2 Cr. to INR 5 Cr. | Above INR 5 Cr. |
| Surcharge Rate | 10% | 15% | 25% | 37% |
Income Tax Slabs for Individuals/HUFs under New Tax Regime
| Income Tax Slab | Income Tax Rate |
| Up to INR 3,00,000 | NIL |
| INR 3,00,001 to INR 6,00,000 | 5% above INR 3,00,000 |
| INR 6,00,001 to INR 9,00,000 | INR 15,000 + 10% above INR 6,00,000 |
| INR 9,00,001 to INR 12,00,000 | INR 45,000 + 15% above INR 9,00,000 |
| INR 12,00,001 to INR 15,00,000 | INR 90,000 + 20% above INR 12,00,000 |
| Above INR 15,00,000 | INR 1,50,000 + 30% above INR 15,00,000 |
An additional 4% Health and Educational Cess is imposed on the calculated tax amount.
For individuals/HUFs selecting the new tax regime rates, the surcharge rates are as follows:
| ncome Range | INR 50 lakhs to INR 1 Cr. | INR 1 Cr. to INR 2 Cr. | Above INR 2 Cr |
| Surcharge Rate | 10% | 15% | 25% |
Income Tax Slabs for Other than Individuals/HUFs
Rate for AOP/BOI/Any other artificial juridical person
| Net Income Range | Income Tax Rates |
| Up to INR 2,50,000 | NIL |
| INR 2,50,000 to INR 5,00,000 | 5% |
| INR 5,00,000 to INR 10,00,000 | 20% |
| Above INR 10,00,000 | 30% |
Cess and Surcharge are the same as the rate applicable to Individuals and HUFs.
Rate for Partnership Firms
| Tax rate | 30% |
| Cess | 4% |
| Surcharge (applicable only if total income exceeds INR 1 Cr.) | 12% |
Rate for Domestic Companies
| Domestic Company | Tax Rates |
| if opted for Section 115BA | 25% |
| if opted for Section 115BAA | 22% |
| if opted for Section 115BAB (Manufacturing) | 15% |
| Any other Domestic Company | 30% |
An additional 4% Health and Educational Cess is levied on the tax amount, including the surcharge.
For companies, the surcharge rate are as follows:
- 7% if total income exceeds INR 1 Cr.
- 12% if total income exceeds INR 10 Cr.
- A flat 10% if the company has opted for Section 115BAA & 115BAB.
Rate for co-operative society
| Net Income Range | Income Tax Rates |
| Up to INR 10,000 | 10% |
| INR 10,000 to INR 20,000 | 20% |
| Above INR 20,000 | 30% |
An additional 4% Health and Educational Cess is applied to the calculated tax amount.
For Assessment Year 2023-24 onward, the surcharge rate are as follows:
- 7% if the net income falls within the range of INR 1 Cr. to INR 10 Cr.
- 12% if the net income exceeds INR 10 Cr.
For local authorities, the tax rate is 30%.
Additionally, an extra 4% Health and Educational Cess is levied on the calculated tax amount.
Surcharge is applicable as follows:
- 12% of Income Tax when the total income exceeds INR 1 Cr.
Surcharge on Income Tax is an additional charge introduced to ensure that the wealthy contribute more in taxes compared to those with lower incomes. It is calculated based on the total income tax amount and not the total income itself.
Surcharge Rates
The below table shows the surcharge on income tax applicable to any individual, HUF, AOP, BOI, or any artificial judicial person.
| Nature of Income | More than 50L and up to 1 Cr. | More than 1 Cr. and up to 2 Cr. | More than 2 Cr. and up to 5 Cr. | More than 5 Cr. |
| STCG chargeable to tax u/s 111A | 10% | 15% | 15% | 15% |
| LTCG chargeable to tax u/s 112A | 10% | 15% | 15% | 15% |
| Any Other Income | 10% | 15% | 25% | 37% (25% in case of new tax regime u/s 115BAC) |
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Official Income Tax Return filing website: https://incometaxindia.gov.in/
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