Rates Of Income Tax Assessment Year

Rates Of Income Tax Assessment year : 2023-24 Previous year : 2022-23

1. For resident Senior Citizens. (Age above 60 Years)

Old Tax Slab Rate Tax Slab as per (Sec 115BAC) Rate
Upto Rs 3,00,000 NIL Upto Rs 2,50,000 NIL
Rs 3,00,001 - Rs 5,00,000 5% Rs 2,50,001 - Rs 5,00,000 5%
Rs 5,00,001 - Rs 10,00,000 20% Rs 5,00,001 - Rs 7,50,000 10%
Rs 7,50,001 - Rs 10,00,000 15%
Above Rs 10,00,000 30% Rs 10,00,001 - Rs 12,50,000 20%
Rs 12,50,001 - Rs 15,00,000 25%
Above Rs 15,00,000 30%

2. For resident Super Senior Citizens. (Age above 80 Years)

Old Tax Slab Rate Tax Slab as per ( Sec 115BAC) Rate
Upto Rs 5,00,000 NIL Upto Rs 2,50,000 NIL
Rs 2,50,001 - Rs 5,00,000 5%
Rs 5,00,001 - Rs 10,00,000 20% Rs 5,00,001 - Rs 7,50,000 10%
Rs 7,50,001 - Rs 10,00,000 15%
Above Rs 10,00,000 30% Rs 10,00,001 - Rs 12,50,000 20%
Rs 12,50,001 - Rs 15,00,000 25%
Above Rs 15,00,000 30%

3. Individuals, [other than those mentioned above, HUF, AOP/BOI (other than co-operative societies).

Old    Tax Slab Rate Tax Slab as per (Sec 115BAC) Rate
Upto Rs 2,50,000 NIL Upto Rs 2,50,000 NIL
Rs 2,50,001 - Rs 5,00,000 5% Rs 2,50,001 - Rs 5,00,000 5%
Rs 5,00,001 - Rs 10,00,000 20% Rs 5,00,001 - Rs 7,50,000 10%
Rs 7,50,001 - Rs 10,00,000 15%
Above Rs 10,00,000 30% Rs 10,00,001 - Rs 12,50,000 20%
Rs 12,50,001 - Rs 15,00,000 25%
Above Rs 15,00,000 30%

Note: Rebate u/s 87A, in which resident individuals are allowed rebate (if their taxable income does not exceed Rs. 5 lakh) equal to 100% of income tax or Rs. 12,500 whichever less.

Surcharge on Income Tax computed on Other Incomes :
  • 10% for Individual having taxable Income (Including Dividend & Income u/s 111A & 112A) exceeding 50 Lacs upto 1 Crore
  • 15% for Individual having taxable Income (Including Dividend & Income u/s 111A & 112A) exceeding 1 Crore but upto two 2 Crore
  • 25% for Individual having taxable Income (Excluding Dividend & Income u/s 111A & 112A) exceeding 2 Crore but upto 5 Crore
  • 37% for Individual having taxable Income (Excluding Dividend & Income u/s 111A & 112A) exceeding 5 Crore
Surcharge on Income Tax computed on Dividend Income & Income taxable u/s 111A & 112A :
  • 10% for Individual having taxable Income (Including Dividend & Income u/s 111A & 112A) exceeding 50 Lacs upto 1 Crore
  • 15% for Individual having taxable Income (Including Dividend & Income u/s 111A & 112A) exceeding 1 Crore but upto two 2 Crore
  • 15% for Individual having taxable Income (Excluding Dividend & Income u/s 111A & 112A) exceeding 2 Crore but upto 5 Crore
  • 15% for Individual having taxable Income (Excluding Dividend & Income u/s 111A & 112A) exceeding 5 Crore

Health and Education Cess: 4% on the amount of Tax plus surcharge
Firms
  • Income tax : 30%.
  • Surcharge : 12% of the Income Tax, where total taxable income is more than Rs. 1 crore.

Health and Education Cess: 4% on the amount of Tax plus surcharge.

Companies

(A) Domestic Companies
  • Income tax :
  • If opted for Section 115BA (in case turnover or gross receipt does not exceed Rs 400 crore in the FY 2019-20) - 25%
  • If opted for Section 115BAA (in case assessee is not claming Profit linked deductions, unabsorbed depreciation & Losses) - 22%
  • If opted for Section 115BAB (for new manufacturing companies) -15%
  • Any other domestic company -30%
  • MAT- 15%
  • Surcharge: 7% if the taxable income exceeds Rs. 1 crore & 12% if the taxable income exceeds 10 crores
  • However, the rate of surcharge in case of a company opting for taxability under Section 115BAA or Section 115BAB shall be 10% irrespective of amount of total income

Health and Education Cess: 4% on the amount of Tax plus surcharge

(B) Foreign Companies
Income tax :
  • 40% (in general )
  • 50% (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)
Surcharge :
  • 2% if the taxable income exceeds Rs. 1 crore & 5% if the taxable income exceeds 10 crores
Health and Education Cess: 4% on the amount of Tax plus surcharge
Cooperative Socities (Under Old Regime)
Upto Rs. 10,000 10%
Rs. 10,001 to Rs. 20,000 20%
Rs. 20,001 to Above 30%

Surcharge : 12% of the Income Tax, where total taxable income is more than Rs. 1 crore.

Health and Education Cess: 4% on the amount of Tax plus surcharge
Cooperative Socities (Under New Regime) -Section 115BAC

Income tax : Flat rate of 22%

Surcharge : 10% of the Income Tax

Health and Education Cess: 4% on the amount of Tax plus surcharge
Local Authorities

Income tax : 30%.

Surcharge : 12% of the Income Tax, where total taxable income is more than Rs. 1 crore

Health and Education Cess: 4% on the amount of Tax plus surcharge

Rates Of Income Tax Assessment year : 2022-23 Previous year : 2021-22

1. For resident Senior Citizens. (Age above 60 Years)

Old Tax Slab Rate Tax Slab as per (Sec 115BAC) Rate
Upto Rs 3,00,000 NIL Upto Rs 2,50,000 NIL
Rs 3,00,001 - Rs 5,00,000 5% Rs 2,50,001 - Rs 5,00,000 5%
Rs 5,00,001 - Rs 10,00,000 20% Rs 5,00,001 - Rs 7,50,000 10%
Rs 7,50,001 - Rs 10,00,000 15%
Above Rs 10,00,000 30% Rs 10,00,001 - Rs 12,50,000 20%
Rs 12,50,001 - Rs 15,00,000 25%
Above Rs 15,00,000 30%

2. For resident Super Senior Citizens. (Age above 80 Years)

Old Tax Slab Rate Tax Slab as per ( Sec 115BAC) Rate
Upto Rs 5,00,000 NIL Upto Rs 2,50,000 NIL
Rs 2,50,001 - Rs 5,00,000 5%
Rs 5,00,001 - Rs 10,00,000 20% Rs 5,00,001 - Rs 7,50,000 10%
Rs 7,50,001 - Rs 10,00,000 15%
Above Rs 10,00,000 30% Rs 10,00,001 - Rs 12,50,000 20%
Rs 12,50,001 - Rs 15,00,000 25%
Above Rs 15,00,000 30%

3. Individuals, [other than those mentioned above, HUF, AOP/BOI (other than co-operative societies).

Old    Tax Slab Rate Tax Slab as per (Sec 115BAC) Rate
Upto Rs 2,50,000 NIL Upto Rs 2,50,000 NIL
Rs 2,50,001 - Rs 5,00,000 5% Rs 2,50,001 - Rs 5,00,000 5%
Rs 5,00,001 - Rs 10,00,000 20% Rs 5,00,001 - Rs 7,50,000 10%
Rs 7,50,001 - Rs 10,00,000 15%
Above Rs 10,00,000 30% Rs 10,00,001 - Rs 12,50,000 20%
Rs 12,50,001 - Rs 15,00,000 25%
Above Rs 15,00,000 30%

Note: Rebate u/s 87A, in which resident individuals are allowed rebate (if their taxable income does not exceed Rs. 5 lakh) equal to 100% of income tax or Rs. 12,500 whichever less.

Surcharge on Income Tax computed on Other Incomes :
  • 10% for Individual having taxable Income (Including Dividend & Income u/s 111A & 112A) exceeding 50 Lacs upto 1 Crore
  • 15% for Individual having taxable Income (Including Dividend & Income u/s 111A & 112A) exceeding 1 Crore but upto two 2 Crore
  • 25% for Individual having taxable Income (Excluding Dividend & Income u/s 111A & 112A) exceeding 2 Crore but upto 5 Crore
  • 37% for Individual having taxable Income (Excluding Dividend & Income u/s 111A & 112A) exceeding 5 Crore
Surcharge on Income Tax computed on Dividend Income & Income taxable u/s 111A & 112A :
  • 10% for Individual having taxable Income (Including Dividend & Income u/s 111A & 112A) exceeding 50 Lacs upto 1 Crore
  • 15% for Individual having taxable Income (Including Dividend & Income u/s 111A & 112A) exceeding 1 Crore but upto two 2 Crore
  • 15% for Individual having taxable Income (Excluding Dividend & Income u/s 111A & 112A) exceeding 2 Crore but upto 5 Crore
  • 15% for Individual having taxable Income (Excluding Dividend & Income u/s 111A & 112A) exceeding 5 Crore

Health and Education Cess: 4% on the amount of Tax plus surcharge
Firms
  • Income tax : 30%.
  • Surcharge : 12% of the Income Tax, where total taxable income is more than Rs. 1 crore.

Health and Education Cess: 4% on the amount of Tax plus surcharge.

Companies

(A) Domestic Companies
  • Income tax :
  • If opted for Section 115BA (in case turnover or gross receipt does not exceed Rs 400 crore in the FY 2019-20) - 25%
  • If opted for Section 115BAA (in case assessee is not claming Profit linked deductions, unabsorbed depreciation & Losses) - 22%
  • If opted for Section 115BAB (for new manufacturing companies) -15%
  • Any other domestic company -30%
  • MAT- 15%
  • Surcharge: 7% if the taxable income exceeds Rs. 1 crore & 12% if the taxable income exceeds 10 crores
  • However, the rate of surcharge in case of a company opting for taxability under Section 115BAA or Section 115BAB shall be 10% irrespective of amount of total income

Health and Education Cess: 4% on the amount of Tax plus surcharge

(B) Foreign Companies
Income tax :
  • 40% (in general )
  • 50% (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)
Surcharge :
  • 2% if the taxable income exceeds Rs. 1 crore & 5% if the taxable income exceeds 10 crores
Health and Education Cess: 4% on the amount of Tax plus surcharge
Cooperative Socities (Under Old Regime)
Upto Rs. 10,000 10%
Rs. 10,001 to Rs. 20,000 20%
Rs. 20,001 to Above 30%

Surcharge : 12% of the Income Tax, where total taxable income is more than Rs. 1 crore.

Health and Education Cess: 4% on the amount of Tax plus surcharge
Cooperative Socities (Under New Regime) -Section 115BAC

Income tax : Flat rate of 22%

Surcharge : 10% of the Income Tax

Health and Education Cess: 4% on the amount of Tax plus surcharge
Local Authorities

Income tax : 30%.

Surcharge : 12% of the Income Tax, where total taxable income is more than Rs. 1 crore

Health and Education Cess: 4% on the amount of Tax plus surcharge

Income tax slabs under the new tax regime for all individuals for FY 2020-21 (AY 2021-22)

Income Tax Slab Tax Rate
Up to Rs 2.5 lakh NIL
Rs 2.5 lakh to Rs 5 lakh 5% (Tax rebate of Rs 12,500 available under section 87A)
Rs 5 lakh to Rs 7.5 lakh 10%
Rs 7.5 lakh to Rs 10 lakh 15%
Rs 10 lakh to Rs 12.5 lakh 20%
Rs 12.5 lakh to Rs 15 lakh 25%
Rs 15 lakh and above 30%

  • The tax calculated on the basis of such rates will be subject to health and education cess of 4%.

  • Any individual opting to be taxed under the new tax regime from FY 2020-21 onwards will have to give up certain exemptions and deductions.

  • Here is the list of exemptions and deductions that a taxpayer will have to give up while choosing the new tax regime.

    1. Leave Travel Allowance (LTA)

    2. House Rent Allowance (HRA)

    3. Conveyance

    4. Daily expenses in the course of employment

    5. Relocation allowance

    6. Helper allowance

    7. Children education allowance

    8. Other special allowances [Section 10(14)]

    9. Standard deduction

    10. Professional tax

    11. Interest on housing loan (Section 24)

    12. Chapter VI-A deduction (80C,80D, 80E and so on) (Except Section 80CCD(2) and 80JJA)

  • Points to remember while opting for the new tax regime:

    1. Option to be exercised on or before the due date of filing return of income for AY 2021-22

    2. In case a taxpayer has a business income and exercised the option, he/she can withdraw from the option only once. A business taxpayer withdrawing from the optional tax regime has to follow the regular income tax slabs.

According to the current income tax laws in India, the income tax rate on resident individuals varies based on their age. There are different tax slabs applicable to the individuals for the financial year 2018-19 and 2019-20. For instance, a resident individual, aged below 60 years, with an income less than Rs 2.5 lacs is exempt from paying income tax.

Given below are the tables for the latest income tax slabs for FY 2018-19 and FY 2019-20.

Income Tax Slabs & Rates for Individual Tax Payers & HUF (Less Than 60 Years Old) for FY 2019-20 – Part I

Income Tax Slab Tax Rate for Individual & HUF Below the Age Of 60 Years
Up to ? 2,50,000* Nil
? 2,50,001 to ? 5,00,000 5% of total income exceeding ? 2,50,000
? 5,00,001 to ? 10,00,000 ? 12,500 + 20% of total income exceeding ? 5,00,000
Above ? 10,00,000 ? 1,12,500 + 30% of total income exceeding ? 10,00,000

  • No tax for individuals with income less than ? 2,50,000

  • 0%-5% tax with income ? 2.5 lacs to 5 lacs for different age groups

  • 20% tax with income ? 5 lacs to 10 lacs

  • 30% tax with income above ? 10 lacs

  • A tax rebate under section 87A is allowed to individual taxpayers a maximum amount of:

    – Rs 2,500 for total income up to Rs 3.5 lakh for FY 2018-19

    – Rs 12,500 for total income up to Rs 5 lakh for FY 2019-20

  • Investments upto ? 1.5 lacs under Sec 80C can save ? 46,800 in taxes.

Note : An additional 4% Health & education cess will be applicable on the tax amount calculated as above.

Let’s understand the tax calculation for rebate with the help of an example:

Source of income (FY 2019-20) Income (Rs)
Salary (6,50,000)
Less: Standard deduction ( 50,000) 6,00,000
Interest on fixed deposit 50,000
Gross total income 6,50,000
Less: Deduction under section 80C 1,50,000
Total income 5,00,000
Income-tax (@ 5% from Rs 2.5 to 5 lakh) 12,500
Less: Rebate u/s 87A 12,500
NIL

Income Tax Slabs for Senior Citizens (60 Years Old Or More but Less than 80 Years Old) for FY 2019-20 – Part II

Income Tax Slabs Tax Rate for Senior cetizens aged 60 Years But Less than 80 Years
Income up to Rs 3,00,000* No tax
Income from Rs 3,00,000 – Rs 5,00,000 5%
Income from Rs 5,00,000 – 10,00,000 20%
Income more than Rs 10,00,000 30%

Note : An additional 4% Health & education cess will be applicable on the tax amount calculated as above.

Let’s understand the tax calculation for rebate with the help of an example:

Source of income (FY 2019-20) Income (Rs)
Salary (4,00,000)
Less: Standard deduction ( 50,000) 3,50,000
Income from house property 2,50,000
Interest on fixed deposit 50,000
Gross total income 6,50,000
Less: Deduction under section 80C 1,50,000
Total income 5,00,000
Income-tax (@ 5% from Rs 3 to 5 lakh) 10,000
Less: Rebate u/s 87A 10,000
NIL

Income Tax Slabs for Super Senior Citizens(80 Years Old Or More) for FY 2019-20 – Part III

Income Tax Slabs Tax Rate for Super Senior Citizens (Aged 80 Years And Above)
Income up to Rs 5,00,000* No tax
Income from Rs 5,00,000 – 10,00,000 20%
Income more than Rs 10,00,000 30%

Note : An additional 4% Health & education cess will be applicable on the tax amount calculated as above.

Let’s understand the tax calculation for a rebate with the help of an example:

Source of income (FY 2019-20) Income (Rs)
Salary (3,50,000)
Less: Standard deduction ( 50,000) 3,00,000
Income from house property 2,50,000
Interest on fixed deposit 1,00,000
Gross total income 6,50,000
Less: Deduction under section 80C 1,50,000
Total income 5,00,000
Income-tax (nil below Rs 5 lakh) NIL
Less: Rebate u/s 87A NIL
NIL

Surcharge applicable to the individuals covered in Part I, II and III:

Income limit Surcharge Rate on the amount of income tax
Net income exceeds Rs 50 lakh but doesn’t exceed Rs 1 crore 10%
Net income above Rs 1 crore but doesn’t exceed Rs 2 crore 15%
Net income exceeds Rs 2 crore but doesn’t exceed Rs 5 crore 25%
Net income exceeds Rs 5 crore 37%

Income Tax Slabs for Domestic Companies for FY 2019-20 – Part IV

Turnover Particulars Tax Rate
Gross turnover upto 400 Cr. in the FY 2017-18 25%
Gross turnover exceeding 400 Cr. in the FY 2017-18 30%
Where the company opted for Section 115BA 25%
GWhere the company opted for Section 115BAA 22%
Where the company opted for Section 115BAB 15%

In addition cess and surcharge is levied as follows:

Cess: 4% of corporate tax

Surcharge applicable:

Income Limit Surcharge Rate on the amount of income tax
Net income exceeds Rs.1 Crore but doesn’t exceed Rs.10 Crore 7%
Net income exceeds Rs.10 Crore 12%

However, the rate of surcharge in case of a company opting for taxability under Section 115BAA or Section 115BAB shall be 10% irrespective of amount of total income.

Tax slabs and tax rates for AY 2019-20 (FY 2018-19)

Income Tax Slabs for Individual Tax Payers & HUF (Less Than 60 Years Old) for FY 2018-19 – Part I

Income Tax Slabs Tax Rate for Individual & HUF Below the Age Of 60 Years
Up to ? 2,50,000* Nil
? 2,50,001 to ? 5,00,000 5% of total income exceeding ? 2,50,000
? 5,00,001 to ? 10,00,000 ? 12,500 + 20% of total income exceeding ? 5,00,000
Above ? 10,00,000 ? 1,12,500 + 30% of total income exceeding ? 10,00,000

Note : An additional 4% Health & education cess will be applicable on the tax amount calculated as above.

Income Tax Slabs for Senior Citizens (60 Years Old Or More but Less than 80 Years Old) for FY 2018-19 – Part II

Income Tax Slabs Tax Rate for 60 Years Old Or More but Less than 80 Years Old
Income up to Rs 3,00,000* No tax
Income from Rs 3,00,000 – Rs 5,00,000 5%
Income from Rs 5,00,000 – 10,00,000 20%
Income more than Rs 10,00,000 30%

Note : An additional 4% Health & education cess will be applicable on the tax amount calculated as above.

Income Tax Slabs for Super Senior Citizens(80 Years Old Or More) for FY 2018-19 – Part III

Income Tax Slabs Tax Rate for Super Senior Citizens (Aged 80 Years And Above)
Income up to Rs 5,00,000* No tax
Income from Rs 5,00,000 – 10,00,000 20%
Income more than Rs 10,00,000 30%

Note: An additional 4% Health & education cess will be applicable on the tax amount calculated as above.

Surcharge applicable to the individuals covered in Part I, II and III:

Income limit Surcharge Rate on the amount of income tax
Net income exceeds Rs.50 Lakhs but doesn’t exceed Rs. 1 Crore 10%
Net income exceeds Rs.1 Crore  15%

Income Tax Slabs for Domestic Companies for FY 2018-19 – Part IV

Turnover Particulars Tax Rate
Gross turnover upto 250 Cr. in the FY 2016-17 25%
Gross turnover exceeding 250 Cr. in the FY 2016-17 30%

In addition cess and surcharge is levied as follows: Cess: 4% of corporate tax

Surcharge applicable:

Income Limit Surcharge Rate on the amount of income tax
Net income exceeds Rs.1 Crore but doesn’t exceed Rs.10 Crore 7%
Net income exceeds Rs.10 Crore 12%