INCOME TAX

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

Health and Education Cess:4% on income-tax plus surcharge

INCOME TAX RATES (OLD TAX REGIME)

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Assessment year: 2024 - 25
Previous year: 2023 - 24

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

Up to Rs 3,00,000	Nil
Rs. 3,00,001 to Rs. 5,00,000	5%
Rs. 5,00,001 to Rs. 10,00,000	20%
Above Rs. 10,00,000	30%

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

Up to Rs 5,00,000	Nil
Rs. 5,00,001 to Rs. 10,00,000	20%
Above Rs. 10,00,000	30%

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

Up to Rs. 2,50,000	Nil
Rs. 2,50,001 to Rs. 5,00,000	5%
Rs. 5,00,001 to Rs 10,00,000	20%
Above Rs. 10,00,000	30%

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Rebate: Rebate u/s 87A is added from Finance Act 2013, in which resident individuals are only allowed rebate (if their taxable income does not exceed Rs. 5 lakh) equal to 100% of income tax payable or Rs. 12,500 whichever is less.

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Surcharge:

10% for Individual having taxable Income exceeding 50 Lacs up to 1 Crore
15% for Individual having taxable Income exceeding 1 Crore up to 2 Crore
25% for Individual having taxable Income exceeding 2 Crore up to 5 Crore
37% for Individual having taxable Income exceeding 5 Crore

Health and Education Cess: 4% on income-tax plus surcharge.

Long-Term Capital Gains:20% on income-tax plus surcharge.

Short-Term Capital Gains u/s 111A: 15% on income-tax plus surcharge

Health and Education Cess: 4% on income-tax plus surcharge.

Surcharge rate for AOP with all members as a company, shall be capped at 15%

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 income-tax plus surcharge

Companies

(A) Domestic Companies

Income tax:30% (25% if turnover or gross receipt does not exceed Rs.50 Crore)

Surcharge: 7% if the taxable income exceeds Rs. 1 crore & 12% if the taxable income exceeds 10 crores

Health and Education Cess:4% on income-tax plus surcharge.

(B) Foreign Companies
Income tax:	40% (in general)
Surcharge:	2% if the taxable income exceeds Rs. 1 crore & 5% if the taxable income exceeds 10 crores
Health and Education Cess:	4% on income-tax plus surcharge

Cooperative Societies

Up to Rs. 10,000	10%
Rs. 10,001 to Rs. 20,000	20%
Rs. 20,001 to Above	30%

Surcharge: 7% of the Income Tax, where total taxable income is more than Rs. 1 crore and less than 10 Crore and 12% where total taxable income exceeds 10 Crore.

Health and Education Cess: 4% on income-tax.

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 income-tax plus surcharge.

INCOME TAX RATES (NEW TAX REGIME)

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Assessment year:2024 – 25

Previous year: 2023 – 24

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For Individuals (Both Resident and Non-resident) and HUF (including AOP/BOI and AJP) u/s 115BAC

Rs 0-3 lakh Nil Rs 3-6 lakhs 5%
Rs 6-9 lakhs 10%
Rs 9-12 lakhs 15%

Rs 12-15 lakhs 20%
Above 15 lakhs 30%

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Note 1:Rebate u/s 87A is introduced under New Tax Regime, in which resident individuals are only allowed rebate (if their taxable income does not exceed Rs. 7 lakh) equal to 100% of income tax payable or Rs. 25,000 whichever is less.

Note 2:Rebate u/s 87A is introduced under New Tax Regime, in which resident individuals are only allowed rebate (if their taxable income does not exceed Rs. 7 lakh) equal to 100% of income tax payable or Rs. 25,000 whichever is less.

Note 3:Currently, those with income up to 5 lakhs do not pay any income tax in both old and new tax regimes. Budget 2023 proposes to increase the rebate limit to 7 lakhs in the new tax regime. Thus, persons in the new tax regime, with income up to 7 lakhs will not have to pay any tax.

Note 4: Finance Bill 2023 also proposes the new income tax regime as the default tax regime. However, citizens will continue to have the option to avail the benefit of the old tax regime. This regime would also become the default regime for AOP (other than co- operative), BOI and AJP. Any individual, HUF, AOP (other than co-operative), BOI or AJP not willing to be taxed under this new regime can opt to be taxed under the old regime. For those people having income under the head “profit and gains of business or profession” and having opted for old regime can revoke that option only once and after that they will continue to be taxed under the new regime. For those not having income under the head “profit and gains of business or profession” option for old regime may be exercised in each year.

Exemptions and deductions not claimable under the new tax regime

The following are some of the major deductions and exemptions you cannot claim under the new tax system:

• The standard deduction under Section 80TTA/80TTB
• Professional tax and entertainment allowance on salaries
• Leave Travel Allowance (LTA)
• House Rent Allowance (HRA)
• Minor child income allowance
• Helper allowance
• Children education allowance
• Other special allowances [Section 10(14)]
• Interest on housing loan on the self-occupied property or vacant property (Section 24)
• Chapter VI-A deduction (Section 80C, 80D, 80E and so on, except Section 80CCD (2) and Section 80JJAA)
• Exemption or deduction for any other perquisites or allowances including food allowance of Rs 50/meal subject to 2 meals a day
• Employee's (own) contribution to NPS
• Donation to Political party/trust, etc

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Surcharge: 10% for Individual having taxable Income exceeding 50 Lacs up to 1 Crore
15% for Individual having taxable Income exceeding 1 Crore up to 2 Crore
25% for Individual having taxable Income exceeding 2 Crore up to 5 Crore

Health and Education Cess:4% on income-tax plus surcharge.

Other changes in New Tax Regime include the following: -

• Tax exemption removed in insurance policies with premium over Rs 5 lakh.
• Revised Tax slabs under Presumptive Taxation provided receipts in cash does not exceed 5%.