Rates of Income Tax
- Lowest Price Guarantee
- Free Export Related Guidance
- Quick and Hassle-Free Process
- Free Expert Assistance for Lifetime
Rates of Income Tax
Income tax rates refer to the percentage at which an individual or business is taxed on their earnings. These rates may vary depending on income levels, filing status, and the specific tax laws of the jurisdiction. Typically, income tax rates are progressive, meaning that higher income levels are subject to higher tax rates. Understanding the current income tax rates is essential for effective financial planning and ensuring compliance with tax regulations.
Rates of Income Tax
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
Income Tax Slabs for Individuals
| Taxable Income | Tax Rate |
|---|---|
| Up to ₹2,50,000 | Nil |
| ₹2,50,001 to ₹5,00,000 | 5% |
| ₹5,00,001 to ₹10,00,000 | 20% |
| Above ₹10,00,000 | 30% |
Less: Rebate under Section 87A (if applicable)
Add: Surcharge and Education Cess (as per applicable rules)
Income Tax Slabs for Individuals (FY 2025-26)
| Taxable Income | Tax Rate |
|---|---|
| Up to ₹2,50,000 | Nil |
| ₹2,50,001 to ₹5,00,000 | 5% |
| ₹5,00,001 to ₹10,00,000 | 20% |
| Above ₹10,00,000 | 30% |
Less: Rebate under Section 87A (if applicable)
Add: Surcharge and Education Cess as per applicable rules
2. In case of a resident senior citizen (who is 60 years or more at any time during the previous year but less than 80 years on the last day of the previous year)
Income Tax Slabs for Individuals – Assessment Year 2024–25 (FY 2023–24)
| Taxable Income | Tax Rate |
|---|---|
| Up to ₹5,00,000 | Nil |
| ₹5,00,001 – ₹10,00,000 | 20% |
| Above ₹10,00,000 | 30% |
Note: Applicable rebates under Section 87A and Education Cess/Surcharge may apply as per the prevailing tax laws.
4. Partnership Firm
For the Assessment Year 2020- 21 and 2021-22, a partnership firm (including LLP) is taxable at 30%.
Add:
- Surcharge: Income-tax will be increased by a 12% surcharge if the total income exceeds ₹1 crore. This surcharge is subject to marginal relief, meaning that the total tax payable (income-tax + surcharge) will not exceed the tax on ₹1 crore by more than the amount of income exceeding ₹1 crore.
- Education Cess: Income-tax along with the applicable surcharge will be further increased by 2% education cess.
- Secondary and Higher Education Cess: Income-tax along with the applicable surcharge will also be further increased by 1% secondary and higher education cess.
5. Local Authority
For the Assessment Year 2020-21 and 2021-22 , a local authority is taxable at 30%.
Add:
- Surcharge: If total income exceeds ₹1 crore, the income-tax will be increased by a 12% surcharge. This surcharge is subject to marginal relief, ensuring that the total tax payable (income-tax plus surcharge) does not exceed the tax on ₹1 crore by more than the amount of income exceeding ₹1 crore.
- Education Cess: Income-tax along with the applicable surcharge will be further increased by an education cess of 2%.
- Secondary and Higher Education Cess: Income-tax along with the applicable surcharge will also be further increased by a 1% secondary and higher education cess.
6. Domestic Company
For the Assessment Year 2020-21, a domestic company is taxable at 30% (25% if turnover or gross receipt does not exceed Rs.400 Crore in previous year).
Add:
Additional Charges on Income Tax
- Surcharge: Income-tax shall be increased by a surcharge based on total income:
- 7% where total income exceeds ₹1 crore but does not exceed ₹10 crore.
- 12% where total income exceeds ₹10 crore.
This surcharge is subject to marginal relief as follows:
- For income exceeding ₹1 crore but not exceeding ₹10 crore, the total payable tax (income-tax + surcharge) shall not exceed the tax on ₹1 crore by more than the amount of income exceeding ₹1 crore.
- For income exceeding ₹10 crore, the total payable tax (income-tax + surcharge) shall not exceed the tax on ₹10 crore by more than the amount of income exceeding ₹10 crore.
- Education Cess: Income-tax and applicable surcharge shall be further increased by an education cess of 2%.
- Secondary and Higher Education Cess: Income-tax and applicable surcharge shall be further increased by a 1% secondary and higher education cess.
7. Foreign Company
The typical timeframe for registering a Section 8 company in India can vary depending on several factors, but generally falls within the range of 7-15 working days.
Add:
Additional Charges on Income Tax
- Surcharge: Income-tax shall be increased by a surcharge based on total income:
- 2% where total income exceeds ₹1 crore but does not exceed ₹10 crore.
- 5% where total income exceeds ₹10 crore.
This surcharge is subject to marginal relief as follows:
- For income exceeding ₹1 crore but not exceeding ₹10 crore, the total payable tax (income-tax + surcharge) shall not exceed the tax on ₹1 crore by more than the amount of income exceeding ₹1 crore.
- For income exceeding ₹10 crore, the total payable tax (income-tax + surcharge) shall not exceed the tax on ₹10 crore by more than the amount of income exceeding ₹10 crore.
- Education Cess: Income-tax and applicable surcharge shall be further increased by an education cess of 2%.
- Secondary and Higher Education Cess: Income-tax and applicable surcharge shall also be further increased by a 1% secondary and higher education cess.
8. Co-operative Society
Add:
Additional Charges on Income Tax
- Surcharge: Income-tax will be increased by a 12% surcharge if total income exceeds ₹1 crore. This surcharge is subject to marginal relief, which ensures that the total payable tax (income-tax + surcharge) does not exceed the tax on ₹1 crore by more than the amount of income exceeding ₹1 crore.
- Education Cess: Income-tax along with the applicable surcharge shall be further increased by 2% education cess.
- Secondary and Higher Education Cess: Income-tax along with the applicable surcharge shall also be further increased by 1% secondary and higher education cess.