Income Tax Rates
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
Assessment Year 2023 – 24 & 2024 – 25 (Old Regime)
| Tax Rate | Taxable Income | ||
| Upto 60 Years | 60 to 80 Years | Above 80 Years | |
| Nil | Up to ₹ 2,50,000 | Up to ₹ 3,00,000 | Up to ₹ 5,00,000 |
| 5% | ₹ 2,50,001 to ₹ 5,00,000 | ₹ 3,00,001 to ₹ 5,00,000 | – |
| 20% | ₹ 5,00,001 to ₹ 10,00,000 | ₹ 5,00,001 to ₹ 10,00,000 | ₹ 5,00,001 to ₹ 10,00,000 |
| 30% | Above ₹ 10,00,000 | Above ₹ 10,00,000 | Above ₹ 10,00,000 |
Assessment Year 2023 – 24 & 2024 – 25 (New Regime)
| Slab | For AY 2023 – 24 | For AY 2024 – 25 |
| (until 31st March 2023) | (From 1st April 2023) | |
| ₹ 0 – ₹ 2,50,000 | – | – |
| ₹ 2,50,000 – ₹ 3,00,000 | 5% | – |
| ₹ 3,00,000 – ₹ 5,00,000 | 5% | 5% |
| ₹ 5,00,000 – ₹ 6,00,000 | 10% | 5% |
| ₹ 6,00,000 – ₹ 7,50,000 | 10% | 10% |
| ₹ 7,50,000 – ₹ 9,00,000 | 15% | 10% |
| ₹ 9,00,000 – ₹ 10,00,000 | 15% | 15% |
| ₹ 10,00,000 – ₹ 12,00,000 | 20% | 15% |
| ₹ 12,00,000 – ₹ 12,50,000 | 20% | 20% |
| ₹ 12,50,000 – ₹ 15,00,000 | 25% | 20% |
| > ₹ 15,00,000 | 30% | 30% |
Notes:-
Individuals with Net taxable income less than or equal to Rs 5 lakh will be eligible for tax rebate u/s 87A i.e tax liability will be nil of such individual in both – New and old/existing tax regimes.
Additional Health and Education cess at the rate of 4 % will be added to the income tax liability in all cases.
Surcharge applicable as per tax rates below in all categories mentioned above:
- 10% of Income tax if total income > Rs.50 lakh
- 15% of Income tax if total income > Rs.1 crore
- 25% of Income tax if total income > Rs.2 crore
- 37% of Income tax if total income > Rs.5 crore
*In Budget 2023, the highest surcharge rate of 37% has been reduced to 25% under the new tax regime. (applicable from 1st April 2023).
Deductions and Exemptions are allowed under the Old and New tax regime:-
| Particulars | Old Tax Regime | New Tax regime | |
| (until 31st March 2023) | (From 1st April 2023) | ||
| Income level for rebate eligibility | ₹ 5 lakhs | ₹ 5 lakhs | ₹ 7 lakhs |
| Standard Deduction | ₹ 50,000 | – | ₹ 50,000 |
| Effective Tax-Free Salary income | ₹ 5.5 lakhs | ₹ 5 lakhs | ₹ 7.5 lakhs |
| Rebate u/s 87A | 12,500 | 12,500 | 25,000 |
| HRA Exemption | ✓ | X | X |
| Leave Travel Allowance (LTA) | ✓ | X | X |
| Other allowances including food allowance of Rs 50/meal subject to 2 meals a day | ✓ | X | X |
| Standard Deduction (Rs 50,000) | ✓ | X | ✓ |
| Entertainment Allowance Deduction and Professional Tax | ✓ | X | X |
| Perquisites for official purposes | ✓ | ✓ | ✓ |
| Interest on Home Loan u/s 24b on slef-occupied or vacant property | ✓ | X | X |
| Interest on Home Loan u/s 24b on let-out property | ✓ | ✓ | ✓ |
| Deduction u/s 80C (EPF, LIC, ELSS, PPF, FD, Children’s tuition fee etc) | ✓ | X | X |
| Employee’s (own) contribution to NPS | ✓ | X | X |
| Employer’s contribution to NPS | ✓ | ✓ | ✓ |
| Medical insurance premium – 80D | ✓ | X | X |
| Disabled Individual – 80U | ✓ | X | X |
| Interest on education loan – 80E | ✓ | X | X |
| Interest on Electric vehicle loan – 80EEB | ✓ | X | X |
| Donation to Political party/trust etc – 80G | ✓ | X | X |
| Savings Bank Interest u/s 80TTA and 80TTB | ✓ | X | X |
| Other Chapter VI-A deductions | ✓ | X | X |
| All contributions to Agniveer Corpus Fund – 80CCH | ✓ | Did not exist | ✓ |
| Deduction on Family Pension Income | ✓ | ✓ | ✓ |
| Gifts upto Rs 5,000 | ✓ | ✓ | ✓ |
| Exemption on voluntary retirement 10(10C) | ✓ | ✓ | ✓ |
| Exemption on gratuity u/s 10(10) | ✓ | ✓ | ✓ |
| Exemption on Leave encashment u/s 10(10AA) | ✓ | ✓ | ✓ |
| Daily Allowance | ✓ | ✓ | ✓ |
| Transport Allowance for a specially-abled person | ✓ | ✓ | ✓ |
| Conveyance Allowance | ✓ | ✓ | ✓ |
2. Partnership Firm
For the Assessment Year 2023-24, a partnership firm (including LLP) is taxable at 30%.
- A Surcharge of 12% is levied on incomes above Rs 1 crore.
- Health and Education Cess Rate – 4 %
3. Local Authority
For the Assessment Year 2023-24, a local authority is taxable at 30%.
- A Surcharge of 12% is levied on incomes above Rs 1 crore.
- Health and Education Cess Rate – 4 %
4. Domestic Company
| Particulars | Existing / Old regime Tax rates | New Regime Tax rates |
| Company opts for section 115BAB (not covered in section 115BA and 115BAA) & is registered on or after October 1, 2019 and has commenced manufacturing on or before 31st March, 2023. | – | 15% |
| Company opts for Section 115BAA , wherein the total income of a company has been calculated without claiming specified deductions, incentives, exemptions and additional depreciation | – | 22% |
| Company opts for section 115BA registered on or after March 1, 2016 and engaged in manufacture of any article or thing and does not claim deduction as specified in the section clause. | – | 25% |
| Turnover or gross receipt of the company is less than Rs. 400 crore in the previous year 2018-19 | 25% | 25% |
| Any other domestic company | 30% | 30% |
Additional Health and Education cess at the rate of 4 % will be added to the income tax liability in all cases.
Surcharge applicable for companies is as below:
- 7% of Income tax where total income > Rs 1 crore
- 12% of Income tax where total income > Rs.10 crore
- 10% of income tax where domestic company opted for section 115BAA and 115BAB.
5. Foreign Company
Assessment Year 2018-19 and Assessment Year 2019-20
| 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% |
Additional Health and Education cess at the rate of 4 % will be added to the income tax liability in all cases.
Surcharge applicable for companies is as below:
- 2% of Income tax where total income > Rs 1 crore
- 5% of Income tax where total income > Rs.10 crore.
6. Co-operative Society
Assessment Year 2023 – 24 and Assessment Year 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% |
Additional Health and Education cess at the rate of 4 % will be added to the income tax liability in all cases.
Surcharge applicable @ 7% of Income tax where total income > Rs 1 crore.