Income tax rates differ for different persons based on several factors, including:
- Income Level
- Nature of the person
- Filing Status
- Age
- Type of Income
- Residency Status
- Deductions and Exemptions
- Special Tax Regimes
The Income-tax Act, 1961 provides for two tax regimes: the old regime, which allows various deductions and exemptions, and the new regime, which offers lower tax rates without exemptions.
The tax slab table for FY 2024-25 under the new tax regime:
| Income Range | Tax Rate |
| Up to Rs 3 lakh | NIL |
| Rs 3 lakh – Rs 7 lakh | 5% |
| Rs 7 lakh – Rs 10 lakh | 10% |
| Rs 10 lakh – Rs 12 lakh | 15% |
| Rs 12 lakh – Rs 15 lakh | 20% |
| Above Rs 15 lakh | 30% |
Note: A tax rebate of up to Rs. 25,000 is available if the total income is less than or equal to Rs. 7,00,000 (not applicable to NRIs).
The tax slab table under old regime:
| Income Range | Individuals Below 60 Years & HUF | Individuals B/w 60 to 80 Years | Individuals Above 80 Years |
| Up to Rs 2,50,000 | NIL | NIL | NIL |
| Rs 2,50,001 – Rs 3,00,000 | 5% | NIL | NIL |
| Rs 3,00,001 – Rs 5,00,000 | 5% | 5% | NIL |
| Rs 5,00,001 – Rs 10,00,000 | 20% | 20% | 20% |
| Above Rs 10,00,000 | 30% | 30% | 30% |
Note: Individuals & HUFs can avail a rebate of up to Rs. 12,500 under Section 87A if their total income is less than or equal to Rs. 5,00,000.
Proposed Income tax slabs under New Regime in Budget 2025 [FY 2025-26]:
| Income Range | Tax Rate |
| Up to Rs 4 lakh | NIL |
| Rs 4 lakh – Rs 8 lakh | 5% |
| Rs 8 lakh – Rs 12 lakh | 10% |
| Rs 12 lakh – Rs 16 lakh | 15% |
| Rs 16 lakh – Rs 20 lakh | 20% |
| Rs 20 lakh – Rs 24 lakh | 25% |
| Above Rs 24 lakh | 30% |
Note: The rebate allowed under section 87A has now been increased to Rs.60,000 for new regime.
Surcharge rates applicable to individuals based on income levels:
| Income Range
|
Surcharge Rate |
| Up to ₹50,00,000
|
NIL |
| ₹50,00,001 to ₹1,00,00,000
|
10% |
| ₹1,00,00,001 to ₹2,00,00,000
|
15% |
| ₹2,00,00,001 to ₹5,00,00,000
|
25% |
| Above ₹5,00,00,000
|
37% |
Income Tax Slab for Firms & LLPs & Local Authorities
| Income Range | Tax Rate |
| From Rs. 0/- | 30% |
Surcharge on Firms & LLPs & Local Authorities
| Income Range
|
Surcharge Rate |
| Up to ₹1,00,00,000
|
NIL |
| Above ₹1,00,00,000
|
12% |
Income Tax & Surcharge Rates for Different Types of Companies
Domestic Companies:
| Category
|
Tax Rate |
| Turnover up to ₹400 crore (FY 2021-22)
|
25% |
| Turnover above ₹400 crore
|
30% |
| New Manufacturing Companies (Section 115BAB) | 15%* |
| Companies opting for Section 115BAA
|
22%* |
*Subject to conditions and without exemptions/deductions.
Foreign Companies:
| Nature of Income
|
Tax Rate |
| Royalties/Fees for Technical Services (as per agreements before April 1, 1976) | 50% |
| Other Income
|
40% |
Surcharge Rates for Companies
| Income Range | Surcharge (Domestic Company) | Surcharge (Foreign Company) |
| Up to ₹1,00,00,000
|
NIL | NIL |
| ₹1,00,00,001 to ₹10,00,00,000 | 7% | 2% |
| Above ₹10,00,00,000
|
12% | 5% |
Tax Slabs for Co-operative Societies
| Income Range
|
Tax Rate |
| Up to ₹10,000
|
10% |
| ₹10,001 – ₹20,000
|
20% |
| Above ₹20,000
|
30% |
Optional Concessional Tax Rates:
| Option
|
Tax Rate |
| Under Section 115BAD
|
22% |
| New Manufacturing Co-operative Societies (115BAE) | 15% |
Surcharge rates for Co-operative societies:
| Income Range
|
Surcharge Rate |
| Up to ₹1 crore | NIL |
| Above ₹1 crore | 12% |