Table of Contents
Income Tax Rate & Slab for Individuals & HUF:
- Individuals (<60 years on last date of the relevant last financial year) who are resident, or resident (but not ordinarily resident), or non-resident and HUF
| TAXABLE INCOME | TAX RATE (Existing Scheme) | TAX RATE (new Scheme) |
| Up to Rs. 2,50,000 | Nil | Nil |
| Rs. 2,50,5001- Rs. 5,00,000 | 5% | 5% |
| Rs. 5,00,001- Rs. 7,50,000 | 20% | 10% |
| Rs. 7,50,001- Rs. 10,00,000 | 20% | 15% |
| Rs. 10,00,001- Rs. 12,50,000 | 30% | 20% |
| Rs. 12,50,001- Rs. 15,00,000 | 30% | 25% |
| Rs. 15,00,000 & above | 30% | 30% |
- Individuals (60=< to <80 years at any date during the last financial year) who are resident or resident but not ordinarily resident senior citizens.
| TAXABLE INCOME | TAX RATE (Existing Scheme) | TAX RATE (new Scheme) |
| Up to Rs. 2,50,000 | Nil | Nil |
| Rs. 2,50,5001 to Rs. 3,00,000 | Nil | 5% |
| Rs. 3,00,001 to Rs. 5,00,000 | 5% | 5% |
| Rs. 5,00,001 to Rs. 7,50,000 | 20% | 10% |
| Rs. 7,50,001 to Rs, 10,00,000 | 20% | 15% |
| Rs. 10,00,001 to Rs. 12,50,000 | 30% | 20% |
| Rs. 12,50,001 to Rs. 15,00,000 | 30% | 25% |
| Rs. 15,00,000 & above | 30% | 30% |
- Individuals (>=80 years at any date during the last financial year) who are resident or not ordinarily resident super senior citizen of India.
| TAXABLE INCOME | TAX RATE (Existing Scheme) | TAX RATE (new Scheme) |
| Up to Rs. 2,50,000 | Nil | Nil |
| Rs. 2,50,5001 to Rs. 5,00,000 | Nil | 5% |
| Rs. 5,00,001 to Rs. 7,50,000 | 20% | 10% |
| Rs. 7,50,001 to Rs. 10,00,000 | 20% | 15% |
| Rs. 10,00,001 to Rs. 12,50,000 | 30% | 20% |
| Rs. 12,50,001 to Rs. 15,00,000 | 30% | 25% |
| Rs 15,00,000 & above | 30% | 30% |
Surcharge:
a) 10% for total income >50 lakhs
b) 15% for total income >Rs.1 crore
c) 25% for total income >Rs.2 crore
d) 37% for total income >Rs.5 crore
Note: Specified incomes get relief from the Enhanced Surcharge rate (25% or 37%). The applicable categories are short-term capital gain u/s 111A, long-term capital gain u/s 112A, and short-term or long-term capital gain u/s 115AD(1)(b).
Education cess: There is a 4% of income tax plus a surcharge
Note: A resident or resident but not ordinarily resident individual is entitled to a rebate under section 87A if her/his total income remains under the rupees five lakh limit. This rebate would be Rs. 12,500 or 100% of income tax (whichever is less). The rebate under section 87A is available in both existing and new schemes.
Income Tax Rates for AOP/BOI/ Other Artificial Juridical Person:
| Taxable Income | Tax Rate |
| <Rs. 2,50,000 | Nil |
| Rs.2,50,001<= to >=Rs. 5,00,000 | 5% |
| Rs. 5,00,001<= to >= Rs. 10,000 | 20% |
| Rs. 10,000,000< | 30% |
Surcharge:
a) 10% of Income tax when total income >Rs.50 lakh
b) 15% of Income tax when total income >Rs.1 crore
c) 25% of Income tax when total income >Rs.2 crore
d) 37% of Income tax when total income >Rs.5 crore
Note: In instances of specified incomes, the Enhanced Surcharge rate (25% or 37%) does not apply. Examples of specified incomes include short-term capital gain u/s 111A, long-term capital gain u/s 112A, short-term capital gain u/s 115AD(1)(b), and long-term capital gain u/s 115AD(1)(b).
Education cess: There is a 4% of tax plus a surcharge on education.
Tax Rate for Partnership Firm:
Partnership firms, inclusive of LLP need to pay tax at the rate of 30% of overall income.
Surcharge: In the instance where the total income is more than Rs. 1 crore, there would be a surcharge of an additional 12% on the Income tax.
Education cess: Education would attract a 4% of income tax plus surcharge
Income Tax Slab Rate for Local Authority:
The government of India places a tax of 30% on the total income of local authorities.
Surcharge: In case, the local authority enjoys an income in excess of Rs. 1 crore, then a surcharge of 12% would be placed by the income tax authority.
Education cess: Education would attract a 4% of income tax plus surcharge
Tax Slab Rate for Domestic Companies:
A domestic company comes under the bracket of 30% of Indian income tax. In the case, where the turnover of the company’s last financial year remains below Rs. 400 crores, the company would be charged a 25% income tax on the total earning.
| PARTICULARS | RATE OF INCOME TAX |
| In the instance where the company annual turnover in last financial year remained under the Rs. 400 crores limit. | 25% |
| Companies opted under Section 115BA (Note 1) | 25% |
| Companies opted under Section 115BAA (Note 2) | 22% |
| Companies opted under Section 115BAB (Note 3) | 15% |
| Other Domestic Companies | 30% |
Note 1: Section 115BA – A domestic organization which has (a) registered on or after March 1, 2016 and functioning as a manufacturer or producer of any article or thing and (b) engaged in research in association to (or distribution of) such article or thing manufactured or produced by it, and (c) does not claim any deduction under sections 10AA, 32AC, 32AD, 33AB, 33ABA, 35(1)(ii)/(ii a)/(iii)/35(2AA)/(2AB), 35AC, 35AD, 35CCC, 35CCD, section 80H to 80TT (Other than 80JJAA) or additional depreciation, could elect section 115BA on or before the due date of return by filing Form 10-IB online. However, the organization could not claim any brought forwarded losses (in case the loss is associated to the deductions pertaining to the above points).
Note 2: Section 115BAA – Company’s total income is taxable at income tax rate of 22% (from A.Y 2020-21), if it is able to satisfy the following criterions:
(a) Company is not claiming any deduction u/s 10AA or 32(1)(ii a) or 32AD or 33AB or 33ABA or 35(1)(ii)/(ii a)/(iii)/35(2AA)/(2AB) or 35AD or 35CCC or 35CCD or section 80H to 80TT (Except 80JJAA).
(b) Company does not places any brought forwarded losses (in case the losses are associated with the deductions of above mentioned point).
(c) There is no provisions of MAT on the company and after opting for this option, the company becomes ineligible to claim the MAT credit (if such available exists during the time of exercising of section 115BAA).
Note 3: Section 115BAB – Company’s overall income is taxable at the income tax rate of 15% (from A.Y 2020-21), if it is able to satisfy the following criterions:
- Company (not covered in section 115BA and 115BAA) is registered on or after October 1, 2019 and started manufacturing on or before 31st March, 2023.
- Company is freshly formed and does not have a history of splitting up or reconstructing from a business previously in existence.
- Company does not employ any equipment or plant that was earlier used for a different purpose.
- Company does not engage any edifice that was earlier used as a convention centre or hotel.
- Company is not involved in any business other than the production or manufacture of articles or things and any research other than that relating to (or distribution of) such articles or things that it manufactures or produces. The company should not engage in the manufacture or production of –
- Computer software development;
- Mining;
- Making slabs from marble blocks or similar items;
- Bottling gas into cylinders;
- Book printing or cinematographic film production; or
- Any other Central Government notified the company.
(a) Company does not claim any deduction under sections 10AA or 32(1)(ii a) or 32AD or 33AB or 33ABA or 35(1)(ii)/(ii a)/(iii)/35(2AA)/(2AB) or 35AD or 35CCC or 35CCD or section 80H to 80TT (Other than 80JJAA and 80M).
(b) Company does not claim any brought forwarded losses (in case the loss is associated with the deductions mentioned in the above point).
(c) After exercising the option, the company will not enjoy the MAT provisions. The company is not eligible to claim the MAT credit (even if such an option is available during the time of exercising section 115BAA).
Surcharge:
a) 7% of Income tax when net return is greater than Rs.1 crore
b) 12% of Income tax when net return is greater than Rs. 10 crores
c) 10% of income tax when the domestic company elected for sections 115BAA and 115BAB
Education cess: An education cess of 4% of Income tax plus a surcharge is chargeable.
Income Tax for Overseas Company:
An overseas company is taxed at the rate of 40% of net income.
Surcharge:
a) 2% of Income tax when net return is greater than Rs. 1 crore
b) 5% of Income tax when net return is greater than Rs. 10 crores
Education cess: An education cess of 4% of Income tax plus surcharge is chargeable.
Income Tax Slab for Co-operative Society:
| TAXABLE INCOME | TAX RATE (EXISTING SCHEME) | TAX RATE (NEW SCHEME) |
| <=Rs. 10,000 | 10% | |
| Rs 10,000< to <=Rs. 20,000 | 20% | 22% |
| Rs. 20,000< | 30% |
Surcharge:
a) 12% of Income tax when net return is greater than Rs. 1 crore
b) In the instance of Concessional scheme, surcharge rate is 10%
Education cess: An education cess of 4% of Income tax plus surcharge is chargeable.
Note: Tax laws undergo changes without any prior notice. Hence, it is essential to consult a professional tax advisor prior to acting on the above information.
I’m Shiv Kumar, a graduate with a passion for finance, marketing, and technology. My journey into finance started with a desire to understand money management and investing.
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