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Income Tax Slabs and Rates

by | May 10, 2024 | Income Tax, Income Tax filing | 0 comments

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Important Keyword: Budget 2021, Income Tax, Income Tax Filing.

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 SlabIncome Tax Rate
Up to INR 2,50,000NIL
INR 2,50,001 to INR 5,00,0005% above INR 2,50,000
INR 5,00,001 to INR 10,00,000INR 12,500 + 20% above INR 5,00,000
Above INR 10,00,000INR 1,12,500 + 30% above INR 10,00,000
For Senior Citizens (Individuals/HUFs between the age of 60 years-80 years)
Income Tax SlabIncome Tax Rate
Up to INR 3,00,000NIL
INR 3,00,001 to INR 5,00,0005% above INR 3,00,000
INR 5,00,001 to INR 10,00,000INR 10,000 + 20% above INR 5,00,000
Above INR 10,00,000INR 1,10,000 + 30% above INR 10,00,000
For Super Senior Citizens (Individuals/HUFs above the age of 80 years)
Income Tax SlabIncome Tax Rate
Up to INR 5,00,000NIL
INR 5,00,001 to INR 10,00,00020% above INR 5,00,000
Above INR 10,00,000INR 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 RangeINR 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 Rate10%15%25%37%
Income Tax Slabs for Individuals/HUFs under New Tax Regime
Income Tax SlabIncome Tax Rate
Up to INR 3,00,000NIL
INR 3,00,001 to INR 6,00,0005% above INR 3,00,000 
INR 6,00,001 to INR 9,00,000INR 15,000 + 10% above INR 6,00,000
INR 9,00,001 to INR 12,00,000INR 45,000 + 15% above INR 9,00,000
INR 12,00,001 to INR 15,00,000INR 90,000 + 20% above INR 12,00,000
Above INR 15,00,000INR 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 RangeINR 50 lakhs to INR 1 Cr.INR 1 Cr. to INR 2 Cr.Above INR 2 Cr
Surcharge Rate10%15%25%

Income Tax Slabs for Other than Individuals/HUFs

Rate for AOP/BOI/Any other artificial juridical person
Net Income RangeIncome Tax Rates
Up to INR 2,50,000NIL 
INR 2,50,000 to INR 5,00,000 5%
INR 5,00,000 to INR 10,00,00020%
Above INR 10,00,00030%

Cess and Surcharge are the same as the rate applicable to Individuals and HUFs.

Rate for Partnership Firms
Tax rate30%
Cess4%
Surcharge (applicable only if total income exceeds INR 1 Cr.)12%
Rate for Domestic Companies
Domestic CompanyTax Rates
if opted for Section 115BA25%
if opted for Section 115BAA22%
if opted for Section 115BAB (Manufacturing)15%
Any other Domestic Company30%

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 RangeIncome Tax Rates
Up to INR 10,00010%
INR 10,000 to INR 20,00020%
Above INR 20,00030%

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 IncomeMore 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 111A10%15%15%15%
LTCG chargeable to tax u/s 112A10%15%15%15%
Any Other Income10%15%25%37% (25% in case of new tax regime u/s 115BAC)

Read More: How to file income tax return of deceased person in India?

Web Stories: How to file income tax return of deceased person in India?

Official Income Tax Return filing website: https://incometaxindia.gov.in/

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