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Income Tax Library

Assessment Year 2024-25

Tax Rates

Assessment Year 2023-24

Assessment Year 2024-25

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.

Individuals
(Other than senior and super senior citizen)
Rate of Income-tax
Net Income Range
Assessment Year 2024-25 Assessment Year 2023-24
Up to Rs. 2,50,000 - -
Rs. 2,50,000 to Rs. 5,00,000 5% 5%
Rs. 5,00,000 to Rs. 10,00,000 20% 20%
Above Rs. 10,00,000 30% 30%
Senior Citizen
(who is 60 years or more at any time during the previous year)
Rate of Income-tax
Net Income Range Assessment Year
Assessment Year 2023-24
2024-25
Up to Rs. 3,00,000 - -
Rs. 3,00,000 to Rs. 5,00,000 5% 5%
Rs. 5,00,000 to Rs. 10,00,000 20% 20%
Above Rs. 10,00,000 30% 30%
Super Senior Citizen
(who is 80 years or more at any time during the previous year)
Rate of Income-tax
Net Income Range Assessment Year
Assessment Year 2023-24
2024-25
Up to Rs. 5,00,000 - -
Rs. 5,00,000 to Rs. 10,00,000 20% 20%
Above Rs. 10,00,000 30% 30%
Hindu Undivided Family (Including AOP, BOI and Artificial Juridical Person)
Rate of Income-tax
Net Income Range Assessment
Assessment Year 2023-24
Year 2024-25
Up to Rs. 2,50,000 - -
Rs. 2,50,000 to Rs. 5,00,000 5% 5%
Rs. 5,00,000 to Rs. 10,00,000 20% 20%
Above Rs. 10,00,000 30% 30%

Add:

a. Surcharge : Surcharge is levied on the amount of income-tax at following rates if total income of an
assessee exceeds specified limits:-

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Rate of Surcharge
Assessment Year 2024-25 Assessment Year 2023-25
Range of Income Range of Income
Rs. 2 Rs. 50 Rs. 1
Rs. 50 Rs. 1 Crore Rs. 2 Crores
Crores to above Rs. 5 Lakhs to Crore to above Rs. 5
Lakhs to Rs. to Rs. 2 to Rs. 5
Rs. 5 crore Rs. 1 Rs. 2 crore
1 Crore Crores Crores
Crores Crore Crores
10% 15% 25% 37% 10% 15% 25% 37%

Note:

(1) The enhanced surcharge of 25% & 37%, as the case may be, is not levied, from income chargeable
to tax under sections 111A,112 112A and 115AD. Hence, the maximum rate of surcharge on tax
payable on such incomes shall be 15%.

(2) The surcharge rate for AOP with all members as a company, shall be capped at 15%.

(3) The surcharge rate is nil if the total income of a ‘specified fund’ as referred to section 10(4D)
includes any income in respect of securities as given under section 115AD(1)(a).

Marginal relief is available from surcharge in following manner-

i. in case where net income exceeds Rs. 50 lakh but doesn't exceed Rs. 1 Crore, the amount payable
as income tax and surcharge shall not exceed the total amount payable as income tax on total income
of Rs 50 Lakh by more than the amount of income that exceeds Rs 50 Lakhs.

ii. in case where net income exceeds Rs. 1 crore but doesn't exceed Rs. 2 crore, marginal relief shall
be available from surcharge in such a manner that the amount payable as income tax and surcharge
shall not exceed the total amount payable as income-tax on total income of Rs. 1 crore by more than
the amount of income that exceeds Rs. 1 crore.

iii. in case where net income exceeds Rs. 2 crore but doesn't exceed Rs. 5 crore, marginal relief shall
be available from surcharge in such a manner that the amount payable as income tax and surcharge
shall not exceed the total amount payable as income-tax on total income of Rs. 2 crore by more than
the amount of income that exceeds Rs. 2 crore.

iv. in case where net income exceeds Rs. 5 crore, marginal relief shall be available from surcharge in
such a manner that the amount payable as income tax and surcharge shall not exceed the total amount
payable as income-tax on total income of Rs. 5 crore by more than the amount of income that exceeds
Rs. 5 crore.

b. Health and Education Cess : Health and Education Cess is levied at the rate of 4% on the amount of
income-tax plus surcharge.

Notes:

(1) The Health and Education Cess is nil if the total income of a 'specified fund' as referred to section
10(4D) includes any income in respect of securities as given under section 115AD(1)(a).

(2) A resident individual (whose net income does not exceed Rs. 5,00,000) can avail rebate under
section 87A. It is deductible from income-tax before calculating education cess. The amount of rebate
is 100 per cent of income-tax or Rs. 12,500, whichever is less.

(3) If the total income of resident individual, who is opting for the new tax scheme under Section
115BAC(1A), is up to Rs. 7,00,000, a higher rebate of Rs. 25,000 is allowed under section 87A.Such
higher rebate is also subject to marginal relief.

Alternate Minimum Tax (AMT)

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An individual is liable to pay Alternate Minimum Tax where tax payable by him, on his total income
computed as per normal provisions of the Act, is less than 18.5% of 'adjusted total income'. In such a case
the 'adjusted total income' is taken as income of such individual and he shall be liable to pay tax at the rate
of 18.5% of such 'adjusted total income'.

However, AMT is levied at the rate of 9% (plus surcharge and cess as applicable) in case of a company,
being a unit of an International Financial Services Centre and deriving its income solely in convertible
foreign exchange.

1.1. Special tax Rate for Individual and HUFs

New tax regime (also known as alternative tax regime) is optional for the Assessment Year 2023-24. An
individual or HUF has to exercise the option under section 115BAC(5) to avail its benefit.

However, for the Assessment Year 2024-25, the new tax regime is the default tax regime for the Individual
or HUF. Further, the benefit of new tax regime has also extended to Association of Persons (AOP)/Body of
Individuals (BOI) and Artificial Juridical Person (AJP) w.e.f. Assessment Year 2024-25. If one to opt-out
from default new tax regime, he has to exercise the option under section 115BAC(6).

The tax rates under the new tax regime are as under:

(a) For Assessment Year 2023-24:

Net Income Range Tax rate

Up to 2,50,000 Nil
From 2,50,001 to 5,00,000 5%
From 5,00,001 to 7,50,000 10%
From 7,50,001 to 10,00,000 15%
From 10,00,001 to 12,50,000 20%
From 12,50,001 to 15,00,000 25%
Above Rs. 15,00,000 30%

(b) For Assessment Year 2024-25:

Net Income Range Tax rate

Upto Rs. 3,00,000 Nil
From Rs. 3,00,001 to Rs. 6,00,000 5%
From Rs. 6,00,001 to Rs.9,00,000 10%
From Rs. 9,00,001 to Rs. 12,00,000 15%
From Rs. 12,00,001 to Rs. 15,00,000 20%
Above Rs. 15,00,000 30%

Add:

a. Surcharge : Surcharge is levied on the amount of income-tax at following rates if total income of an
assessee exceeds specified limits:-

Range of Income
Rs. 50 Lakhs to Rs. 1
Rs. 1 Crore to Rs. 2 Crores Exceeding Rs. 2 crores
Crore
10% 15% 25%

Note: The enhanced surcharge of 25% is not levied, from income chargeable to tax under sections
111A, 112, 112A and 115AD. Hence, the maximum rate of surcharge on tax payable on such incomes shall
be 15%.

However, marginal relief is available from surcharge in following manner-

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i. in case where net income exceeds Rs. 50 lakh but doesn't exceed Rs. 1 Crore, the amount payable
as income tax and surcharge shall not exceed the total amount payable as income tax on total income
of Rs 50 Lakh by more than the amount of income that exceeds Rs 50 Lakhs.

ii. in case where net income exceeds Rs. 1 crore but doesn't exceed Rs. 2 crore, marginal relief shall
be available from surcharge in such a manner that the amount payable as income tax and surcharge
shall not exceed the total amount payable as income-tax on total income of Rs. 1 crore by more than
the amount of income that exceeds Rs. 1 crore.

iii. in case where net income exceeds Rs. 2 crore, marginal relief shall be available from surcharge in
such a manner that the amount payable as income tax and surcharge shall not exceed the total amount
payable as income-tax on total income of Rs. 2 crore by more than the amount of income that exceeds
Rs. 2 crore.

b. Health and Education Cess : Health and Education Cess is levied at the rate of 4% on the amount of
income-tax plus surcharge.

Notes:

(a) For Assessment Year 2023-24, a resident individual (whose net income does not exceed Rs.
5,00,000) can avail rebate under section 87A. It is deductible from income-tax before calculating
education cess. The amount of rebate is 100 percent of income-tax or Rs.12,500, whichever is less.

(b) From Assessment Year 2024-25, a maximum rebate of Rs. 25,000 is allowed under section 87A, If
the total income of an resident individual, who is opting for the new tax scheme under Section
115BAC(1A), is up to Rs. 7,00,000.

(c) Further, if the total income of the resident individual opting section 115BAC(1A) exceeds Rs.
7,00,000 and the tax payable on such income exceeds the difference between the total income and Rs.
7,00,000, he can claim a rebate with marginal relief to the extent of the difference between the tax
payable on such total income and the amount by which it exceeds Rs. 7,00,000

(d) If an assessee has opted for new tax regime, the provisions of AMT shall not be applicable.

2. Partnership Firm

For the Assessment Year 2024-25, a partnership firm (including LLP) is taxable at 30%.

Add:

(a) Surcharge : The amount of income-tax shall be increased by a surcharge at the rate of 12% of such
tax, where total income exceeds one crore rupees. However, the surcharge shall be subject to marginal
relief (where income exceeds one crore rupees, the total amount payable as income-tax and surcharge
shall not exceed total amount payable as income-tax on total income of one crore rupees by more than
the amount of income that exceeds one crore rupees).

(b) Health and Education Cess : The amount of income-tax and the applicable surcharge, shall be
further increased by health and education cess calculated at the rate of four percent of such income-tax
and surcharge

Alternate Minimum Tax (AMT)

A partnership firm is liable to pay Alternative Minimum Tax where tax payable by it, on total income
computed as per normal provisions of the Act, is less than 18.5% of 'adjusted total income'. In such a case
the 'adjusted total income' is taken as the income of the firm and it shall be liable to pay tax at the rate of
18.5% of such 'adjusted total income'.

However, AMT is levied at the rate of 9% (plus surcharge and cess as applicable) in case of a company,
being a unit of an International Financial Services Centre and deriving its income solely in convertible
foreign exchange.
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3. Local Authority

For the Assessment Year 2023-24 & 2024-25, a local authority is taxable at 30%.

Add:

(a) Surcharge : The amount of income-tax shall be increased by a surcharge at the rate of 12% of
such tax, where total income exceeds one crore rupees. However, the surcharge shall be subject to
marginal relief (where income exceeds one crore rupees, the total amount payable as income-tax and
surcharge shall not exceed total amount payable as income-tax on total income of one crore rupees by
more than the amount of income that exceeds one crore rupees).

(b) Health and Education Cess : The amount of income-tax and the applicable surcharge, shall be
further increased by health and education cess calculated at the rate of four percent of such income-tax
and surcharge.

Alternate Minimum Tax (AMT)

A partnership firm is liable to pay Alternative Minimum Tax where tax payable by it, on total income
computed as per normal provisions of the Act, is less than 18.5% of 'adjusted total income'. In such a case
the 'adjusted total income' is taken as the income of the firm and it shall be liable to pay tax at the rate of
18.5% of such 'adjusted total income'.

However, AMT is levied at the rate of 9% (plus surcharge and cess as applicable) in case of a company,
being a unit of an International Financial Services Centre and deriving its income solely in convertible
foreign exchange.

4. Domestic Company

Income-tax rates applicable in case of domestic companies for assessment year 2023-24 and 2024-25 are as
follows:

Domestic Company Assessment Assessment Year

Year 2023-24 2024-25
♦ Where its total turnover or gross receipt during the
25% NA
previous year 2020-21 does not exceed Rs. 400 crore
♦ Where its total turnover or gross receipt during the
NA 25%
previous year 2021-22 does not exceed Rs. 400 crore
♦ Any other domestic company 30% 30%

Add:

(a) Surcharge : The amount of income-tax shall be increased by a surcharge at the rate of 7% of such
tax, where total income exceeds one crore rupees but not exceeding ten crore rupees and at the rate of
12% of such tax, where total income exceeds ten crore rupees. The surcharge shall be subject to
marginal relief, which shall be as under:

(i) Where income exceeds Rs. 1 crore but not exceeding Rs. 10 crore, the total amount
payable as income-tax and surcharge shall not exceed total amount payable as income-tax on
total income of Rs. 1 crore by more than the amount of income that exceeds Rs. 1 crore.

(ii) Where income exceeds Rs. 10 crore, the total amount payable as income-tax and surcharge
shall not exceed total amount payable as income-tax on total income of Rs. 10 crore by more
than the amount of income that exceeds Rs. 10 crore

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(b) Health and Education Cess : The amount of income-tax and the applicable surcharge, shall be
further increased by health and education cess calculated at the rate of four percent of such income-tax
and surcharge.

Minimum Alternate Tax (MAT)

A domestic company is liable to pay Minimum Alternate Tax where tax payable by it, on total income
computed as per normal provisions of the Act, is less than 15% of 'book profit'. In such a case the 'book
profit' is taken as the income of the company and it shall be liable to pay tax at the rate of 15% of such 'book
profit'.

However, MAT is levied at the rate of 9% (plus surcharge and cess as applicable) in case of a company,
being a unit of an International Financial Services Centre and deriving its income solely in convertible
foreign exchange.

4.1. Special Tax rates applicable to a domestic company

The special Income-tax rates applicable in case of domestic companies are as follows:

Domestic Company
♦ Where it opted for section 115BA 25%
♦ Where it opted for Section 115BAA 22%
♦ Where it opted for Section 115BAB 15%

Surcharge : The rate of surcharge in case of a company opting for taxability under Section
115BAA or Section 115BAB shall be flat 10% irrespective of amount of total income.

Health and Education Cess: The amount of income-tax and the applicable surcharge, shall be further
increased by health and education cess calculated at the rate of four percent of such income-tax and
surcharge.

MAT : The domestic company who has opted for special taxation regime under Section
115BAA & 115BAB is exempted from provision of MAT. However, no exemption is available in case
where section 115BA has been opted.

5. Foreign Company

Assessment Year 2023-24 and Assessment Year 2024-25

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
50%
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
Any other income 40%

Add:

(a) Surcharge: The amount of income-tax shall be increased by a surcharge at the rate of 2% of such
tax, where total income exceeds one crore rupees but not exceeding ten crore rupees and at the rate of
5% of such tax, where total income exceeds ten crore rupees. However, the surcharge shall be subject
to marginal relief, which shall be as under:

(i) Where income exceeds one crore rupees but not exceeding ten crore rupees, the total
amount payable as income-tax and surcharge shall not exceed total amount payable as income-
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tax on total income of one crore rupees by more than the amount of income that exceeds one
crore rupees.

(ii) Where income exceeds ten crore rupees, the total amount payable as income-tax and
surcharge shall not exceed total amount payable as income-tax on total income of ten crore
rupees by more than the amount of income that exceeds ten crore rupees.

(b) Health and Education Cess : The amount of income-tax and the applicable surcharge, shall be
further increased by health and education cess calculated at the rate of four percent of such income-tax
and surcharge.

Minimum Alternate Tax (MAT)

A foreign company is liable to pay Minimum Alternate Tax where tax payable by it, on total income
computed as per normal provisions of the Act, is less than 15% of 'book profit'. In such a case the 'book
profit' is taken as the income of the company and it shall be liable to pay tax at the rate of 15% of such 'book
profit'.

However, the provisions of MAT do not apply in case of foreign companies if it does not have permanent
establishment (PE) in India or opts for presumptive taxation scheme of Section 44B, Section 44BB, Section
44BBA or Section 44BBB.

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%

Add:

(a) (a) Surcharge: The amount of income-tax shall be increased by a surcharge at the rate of 7% of
such tax, where total income exceeds one crore rupees but not exceeding ten crore rupees and at the
rate of 12% of such tax, where total income exceeds ten crore rupees. However, the surcharge shall be
subject to marginal relief.

(b) Health and Education Cess: The amount of income-tax and the applicable surcharge, shall be
further increased by health and education cess calculated at the rate of four percent of such income-tax
and surcharge.

Note:

(a) A co-op. society is liable to pay Alternate Minimum Tax where tax payable by it, on total income
computed as per normal provisions of the Act, is less than 15% of 'adjusted total income'. In such a
case the 'adjusted total income' is taken as the income of co-op. society and it shall be liable to pay tax
at the rate of 15% of such 'adjusted total income'.

(b) If the assessee is a unit located in an International Financial Services Centre and derives its income
solely in convertible foreign exchange, the rate of AMT will be 9%.

6.1. Special tax rates applicable to a Co-operative societies

Taxable income Tax Rate

Any income 22%

6.2. Alternative Tax regime for Co-operative societies

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Income-tax Act allows a co-operative society to choose from the following alternative taxation regime
subject to fulfilment of prescribed conditions:

Section Conditions Tax rate

• The co-operative society is set up and registered
on or after 01-04-2023;

• It is engaged in manufacture or production of any

article or thing; 15% (Income from
Section 115BAE
• It commences manufacturing on or before 31-03- manufacturing activities)
2024 ; and

• It does not claim specified exemption, incentive

or deduction.
If co-operative society does not claim specified
Section 115BAD 22%
exemption, incentive or deduction

Add:

(a) Surcharge: The surcharge is levied at a rate of 10% on the amount of income-tax irrespective of the
total income of such co-operative society.

(b) Health & Education Cess: The amount of income-tax and the applicable surcharge, shall be further
increased by health and education cess calculated at the rate of 4% of such income-tax and surcharge.

Note:

(a) If a co-operative society has exercised the option of Section 115BAD or Section 115BAE, the
provisions of AMT shall not be applicable. Further, the provisions regarding computation and carry
forward of AMT credit shall also be not applicable.

[As amended by Finance Act, 2023]

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