Know Income Tax Rates for FY 2023-24 AY 2024-25

Rate of tax for Individuals

As per Budget 2023 changes has been made in slabs of individuals. Below is the applicable slab rates as per Budget 2023 for FY 2023-24. The New Tax Regime Slab rates shall be the default tax rates from FY 2023-24, whereas the old regime will contimue to exist and individual will have the option to select the old or new regime accordingly.

For Individuals of age upto 60 years

If the individual opts for new tax regime then has to pay tax as per the below slab rates:

SI	Total Income	Rate of Tax
1	Up to Rs. 3,00,000	Nil
3	From Rs. 3,00,001 to Rs. 6,00,000	5 percent.
4	From Rs. 6,00,001 to Rs. 9,00,000	10 percent.
5	From Rs. 9,00,001 to Rs. 12,00,000	15 percent.
6	From Rs. 12,00,001 to Rs. 15,00,000	20 percent.
7	Above Rs. 15,00,000	30 percent

If the individual opts for old tax regime then has to pay tax as per below slab rates:

SI	Total Income	Rate of Tax
1	Up to Rs. 2,50,000	Nil
2	From Rs. 2,50,001 to Rs. 5,00,000	5 per cent.
3	From Rs. 5,00,001 to Rs. 10,00,000	20 per cent.
4	Above Rs. Rs. 10,00,000	30 per cent.

For Individuals of age from 60 years upto 80 years (Senior Citizens)

If the individual opts for new tax regime then has to pay tax as per the below slab rates:

SI	Total Income	Rate of Tax
1	Up to Rs. 3,00,000	Nil
3	From Rs. 3,00,001 to Rs. 6,00,000	5 percent.
4	From Rs. 6,00,001 to Rs. 9,00,000	10 percent.
5	From Rs. 9,00,001 to Rs. 12,00,000	15 percent.
6	From Rs. 12,00,001 to Rs. 15,00,000	20 percent.
7	Above Rs. 15,00,000	30 percent

If the individual opts for old tax regime then has to pay tax as per below slab rates:

SI	Total Income	Rate of Tax
1	Up to Rs. 3,00,000	Nil
2	From Rs. 3,00,001 to Rs. 5,00,000	5 per cent.
3	From Rs. 5,00,001 to Rs. 10,00,000	20 per cent.
4	Above Rs. Rs. 10,00,000	30 per cent.

For Individuals of age above 80 years (Super Senior Citizens)

If the individual opts for new tax regime then has to pay tax as per the below slab rates:

SI	Total Income	Rate of Tax
1	Up to Rs. 3,00,000	Nil
3	From Rs. 3,00,001 to Rs. 6,00,000	5 percent.
4	From Rs. 6,00,001 to Rs. 9,00,000	10 percent.
5	From Rs. 9,00,001 to Rs. 12,00,000	15 percent.
6	From Rs. 12,00,001 to Rs. 15,00,000	20 percent.
7	Above Rs. 15,00,000	30 percent

If the individual opts for old tax regime then has to pay tax as per below slab rates:

SI	Total Income	Rate of Tax
1	From Rs. 5,00,001 to Rs. 10,00,000	20 per cent.
2	Above Rs. Rs. 10,00,000	30 per cent.

Rebate under section 87A

1. Under the provisions of section 87A of the Act, an assessee, being an individual resident in India, having total income not exceeding Rs 5 lakh, is provided a rebate of 100 per cent of the amount of income-tax payable i.e., an individual having income till Rs 5 lakh is not required to pay any income-tax.

2. From assessment year 2024-25 onwards, an assessee, being an individual resident in India whose income is chargeable to tax under the proposed sub-section (1A) of section 115BAC, shall now be entitled to a rebate of 100 per cent of the amount of income-tax payable on a total income not exceeding Rs 7 lakh.

Rate of tax for Association of Person and Body of Individuals

As per section 167B the following is the rate of tax for AOP/ BOI:

a. In case the shares of the members are known and if all members are having Net Taxable income is up to basic exemption limit and none of the member is a foreign company then the income is taxed at slab rate

b. In case the shares of the members are known and if one or more member’s net taxable income is more than basic exemption limit and none of them is foreign company then the tax the entire income at Maximum Marginal rate i.e. 42.744%

c. In case the shares of the members are unknown then the tax the entire income at Maximum Marginal rate i.e. 42.744%.

Note:

At the time of computing the net total income of member his share from AOP/ BOI is excluded
Loss of AOP/ BOI shall be carry forward by such AOP/BOI only
LTCG shall be taxed at 20% and STCG 111A at 15% for AOP/BOI

Rate of tax for Cooperative Society

In the case of co-operative societies, the rates of income-tax have been specified in Paragraph B of Part I of the First Schedule to the Bill. They remain unchanged as below:

Slab of Income	Rate
Upto Rs. 10,000	10%
10,001 to 20,000	20%
Above 20,000	30%

Rate of tax for Firms:

In the case of firms, the rate of income-tax has been specified in Paragraph C of Part I of the First Schedule to the Bill. They remain unchanged. Income of Partnership firms and LLP shall be taxable at the rate of 30%.

Note: LTCG shall be taxed at 20% and STCG 111A at 15% for firm

Rate of tax for Local authorities

The rate of income-tax in the case of every local authority has been specified in Paragraph D of Part I of the First Schedule to the Bill. They remain unchanged at 30%.

Rate of tax for Companies

The rates of income-tax in the case of companies have been specified in Paragraph E of Part I of the First Schedule to the Bill.

Type of company	Rate of tax
Domestic company (If turnover for FY 2018-19 is up to 400 Crores)	25%
Domestic Company (Others)	30%
Foreign Company	40%

Note:

All of the above tax calculated shall be further increased by health and education cess of 4%

Surcharge

Surcharge in case of every Individual or HUF:

In the case of individual or every association of person or body of individuals, whether incorporated or not, or every artificial juridical person referred to in sub-clause (vii) of clause (31) of section 2 of the Income-tax Act having income under section 115AD of the Act,-

(i) Having a total income exceeding fifty lakh rupees but not exceeding one crore rupees, at the rate of ten per cent of such income-tax; and (ii) having a total income exceeding one crore rupees but not exceeding two crore rupees, at the rate of fifteen per cent of such income-tax;

(iii) having a total income [excluding the income by way of dividend or income of the nature referred to in clause (b) of sub-section (1) of section 115AD of the Act] exceeding two crore rupees but not exceeding five crore rupees, at the rate of twenty-five per cent of such income-tax;

(iv) having a total income [excluding the income by way of dividend or income of the nature referred to in clause (b) of sub-section (1) of section 115AD of the Act] exceeding five crore rupees, at the rate of thirty-seven per cent. of such income-tax;

(v) having a total income [including the income by way of dividend or income of the nature referred to in clause (b) of sub-section (1) of section 115AD of the Act] exceeding two crore rupees but is not covered in sub-clauses (iii) and (iv), at the rate of 15% of such income-tax:

Provided that in case where the total income includes any income by way of dividend or income chargeable under clause (b) of sub-section (1) of section 115AD of the Act, the rate of surcharge on the income-tax calculated on that part of income shall not exceed fifteen percent;

Further, in case where the income of the individual or HUF or association of persons [except in case of an association of persons consisting of only companies as its members], or body of individuals, whether incorporated or not, or every artificial juridical person referred to in sub-clause (vii) of clause (31) of
section 2 of the Act, is chargeable to tax under sub-section (1A) of section 115BAC (New Regime) of the Act, the surcharge at the rate of 37% on the income or aggregate of income of such person (excluding the income by way of dividend or income under the provisions of sections 111A, 112 and 112A of the Act) exceeding five crore rupees shall not be applicable. In such cases the surcharge shall be restricted to 25%.

Surcharge in case of firms:

In case of firm 12% surcharge will be levied if Net total income exceeds Rs. 1 Crore.

Surcharge in case of Cooperative Society

a) In the case of every co-operative society (except resident co-operative society opting under section 115BAD) or firm or local authority, at the rate of twelve per cent of such income-tax, where the total income exceeds one crore rupees;

(b) In case of resident co-operative society opting under section 115BAD, at the rate of ten percent of such income tax.

Surcharge In Case Of Company

Type of Company	Rate
Domestic with income upto Rs. 1 Crore but not exceeding Rs. 10 crore	7%
Domestic with income exceeding Rs. 10 crore	12%
Company exercising option under section 115BAB and 115BAA	10%
Foreign with income upto Rs. 1 Crore but not exceeding Rs. 10 crore	2%
Foreign with income exceeding Rs. 10 crore	5%