Tax rate for AY 2024-25 as per Finance Act 2023
Part-III
Paragraph A
Individuals other than senior citizens/AOP/BOI/HUF etc.
(I) In the case of every individual other than the individual referred to in items (II) and (III) of this Paragraph or Hindu undivided family or association of persons 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, not being a case to which any other Paragraph of this Part applies,—
Rates of income-tax
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Nil; | ||||
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5 % of the amount by which the total income exceeds Rs. 2,50,000; | ||||
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Rs. 12,500 plus 20 % of the amount by which the total income exceeds Rs. 5,00,000; | ||||
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Rs. 1,12,500 plus 30 % of the amount by which the total income exceeds Rs.10,00,000. |
Resident Senior Citizen age 60 to 80 years.
(II) In the case of every individual, being a resident in India, who is of the age of sixty years or more but less than eighty years at any time during the previous year,—
Rates of income-tax
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Nil; | ||||
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5 % of the amount by which the total income exceeds Rs. 3,00,000; | ||||
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Rs. 10,000 plus 20 % of the amount by which the total income exceeds Rs. 5,00,000; | ||||
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Rs. 1,10,000 plus 30 % of the amount by which the total income exceeds Rs.10,00,000; |
Resident Senior Citizen age above 80 years.
(III) In the case of every individual, being a resident in India, who is of the age of eighty years or more at any time during the previous year,—
Rates of income-tax
| (1) where the total income does not exceed Rs. 5,00,000 | Nil; |
| (2) where the total income exceeds Rs. 5,00,000 but does not exceed Rs. 10,00,000 | 20 % of the amount by which the total income exceeds Rs. 5,00,000; |
| (3) where the total income exceeds Rs.10,00,000 | Rs. 1,00,000 plus 30 % of the amount by which the total income exceeds Rs. 10,00,000; |
Surcharge on income-tax
The amount of income-tax computed in accordance with the preceding provisions of this Paragraph, or the provisions of section 111A or section 112 or section 112A of the Income-tax Act, shall be increased by a surcharge for the purposes of the Union, calculated, in the case of every individual or Hindu undivided family or association of persons 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,—
| (a) | having a total income (including the income by way of dividend or income under the provisions of section 111A, section 112 and section 112A of the Income-tax Act) exceeding Rs. 50 lakh but not exceeding Rs. 1 crore , @10% of such income-tax; | |
| (b) | having a total income (including the income by way of dividend or income under the provisions of section 111A, section 112 and section 112A of the Income-tax Act) exceeding Rs. 1 crore but not exceeding Rs. 2 crore, @15% of such income-tax; | |
| (c) | having a total income (excluding the income by way of dividend or income under the provisions of section 111A, section 112 and section 112A of the Income-tax Act) exceeding Rs. 2 crore but not exceeding Rs. 5 crore, @25% of such income-tax; | |
| (d) | having a total income (excluding the income by way of dividend or income under the provisions of section 111A, section 112 and section 112A of the Income-tax Act) exceeding Rs. 5 crore, @37% of such income-tax; and | |
| (e) | having a total income (including the income by way of dividend or income under the provisions of section 111A, section 112 and section 112A of the Income-tax Act) exceeding Rs. 2 crore, but is not covered under clauses (c) and (d), shall be applicable at the rate of fifteen per cent of such income-tax: |
Note: no surcharge up to Rs.50 lakh of total income.
Surcharge limited to 15% in the following cases:
Provided that in case where the total income includes any income by way of dividend or income under the provisions of section 111A, section 112, and section 112A of the Income-tax Act, the rate of surcharge on the amount of income-tax computed in respect of that part of income shall not exceed 15%:
Provided further that in case of an association of persons consisting of only companies as its members, the rate of surcharge on the amount of income-tax shall not exceed 15%:
Marginal relief:
Provided also that in the case of persons mentioned above having total income exceeding,—
| (a) | fifty lakh rupees but not exceeding one crore rupees, the total amount payable as income-tax and surcharge on such income shall not exceed the total amount payable as income-tax on a total income of fifty lakh rupees by more than the amount of income that exceeds fifty lakh rupees; | |
| (b) | one crore rupees but does not exceed two crore rupees, the total amount payable as income-tax and surcharge on such income shall not exceed the total amount payable as income-tax and surcharge on a total income of one crore rupees by more than the amount of income that exceeds one crore rupees; | |
| (c) | two crore rupees but does not exceed five crore rupees, the total amount payable as income-tax and surcharge on such income shall not exceed the total amount payable as income-tax and surcharge on a total income of two crore rupees by more than the amount of income that exceeds two crore rupees; | |
| (d) | five crore rupees, the total amount payable as income-tax and surcharge on such income shall not exceed the total amount payable as income-tax and surcharge on a total income of five crore rupees by more than the amount of income that exceeds five crore rupees; |
Special Tax rate under section 115BAC
For AY 2024-25:
Section 115BAC (1A) Finance Act, 2023, w.e.f. 1-4-2024:
(1A) Notwithstanding anything contained in this Act but subject to the provisions of this Chapter, the income-tax payable in respect of the total income of a person, being an individual or Hindu undivided family or association of persons (other than a co-operative society), or body of individuals, whether incorporated or not, or an artificial juridical person referred to in sub-clause (vii) of clause (31) of section 2, other than a person who has exercised an option under sub-section (6), for any previous year relevant to the assessment year beginning on or after the 1st day of April, 2024, shall be computed at the rate of tax given in the following Table, namely:—
TABLE
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Sl. No. |
Total income | Rate of tax |
| (1) | (2) | (3) |
| 1. | Upto Rs. 3,00,000 | Nil |
| 2. | From Rs. 3,00,001 to Rs. 6,00,000 | 5 % |
| 3. | From Rs. 6,00,001 to Rs. 9,00,000 | 10 % |
| 4. | From Rs. 9,00,001 to Rs. 12,00,000 | 15 % |
| 5. | From Rs. 12,00,001 to Rs. 15,00,000 | 20 % |
| 6. | Above Rs. 15,00,000 |
30 % |
(2) For the purposes of sub-section (1A), the total income of the person referred to therein, shall be computed—
| (i) |
without any exemption or deduction under the provisions of 10 (5) or 10 (13A) or prescribed under clause 10 (14) (other than those as may be prescribed for this purpose) or 10(17) or 10(32), or section 10AA or clause (ii) or clause (iii) of section 16(ii) or section 16(iii) or section 24(b) [in respect of the property referred to in sub-section (2) of section 23] or section 32(1)(iia) or section 32AD or section 33AB or section 33ABA or sub-clause (ii) or sub-clause (iia) or sub-clause (iii) of sub-section (1) or sub-section (2AA) of section 35 or section 35AD or section 35CCC or under any of the provisions of Chapter VI-A other than the provisions of sub-section (2) of section 80CCD or sub-section (2) of section 80CCH or section 80JJAA;
permissible deduction u/s 115BAC are : 1. standard deduction u/s16(ia)- upto Rs. 50,000/- 2. deduction u/s 80CCD(2) for contribution to pension scheme by central government or state government employer – upto 14% of salary and for other employer 10% of salary 3. deduction u/s80CCH(2) for contribution to Agniveer Corpus Fund on or after the 1st day of November, 2022 under the Agnipath Scheme. 4. deduction u/s80JJAA for employment of new employees.
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| (ii) | without set off of any loss,— |
| (a) | carried forward or depreciation from any earlier assessment year, if such loss or depreciation is attributable to any of the deductions referred to in clause (i); | |
| (b) | under the head “Income from house property” with any other head of income; |
| (iii) | by claiming the depreciation, if any, under any provision of section 32, except clause (iia) of sub-section (1) of the said section, determined in such manner as may be prescribed; and | |
| (iv) | without any exemption or deduction for allowances or perquisite, by whatever name called, provided under any other law for the time being in force. |
(3) The loss and depreciation referred to in clause (ii) of sub-section (2) shall be deemed to have been given full effect to and no further deduction for such loss or depreciation shall be allowed for any subsequent year:
Provided that where there is a depreciation allowance in respect of a block of assets which has not been given full effect to prior to the assessment year beginning on the 1st day of April, 2021, corresponding adjustment shall be made to the written down value of such block of assets as on the 1st day of April, 2020 in the prescribed manner, if the option under sub-section (5) is exercised for a previous year relevant to the assessment year beginning on the 1st day of April, 2021.
Following second proviso shall be inserted after the existing proviso to section 115BAC(3) by the Finance Act, 2023, w.e.f. 1-4-2024:
Provided further that in a case where,––
| (i) | the assessee has not exercised the option under sub-section (5) for any previous year relevant to the assessment year beginning on or before the 1st day of April, 2023; | |
| (ii) | the income-tax on the total income of the assessee is computed under sub-section (1A); and | |
| (iii) | there is a depreciation allowance in respect of a block of assets which has not been given full effect prior to the assessment year beginning on the 1st day of April, 2024, |
corresponding adjustment shall be made to the written down value of such block of assets as on the 1st day of April, 2023 in the manner as may be prescribed.
Following sub-section (4) shall be substituted for the existing sub-section (4) of section 115BAC by the Finance Act, 2023, w.e.f. 1-4-2024:
(4) In the case of a person, having a Unit in the International Financial Services Centre, as referred to in sub-section (1A) of section 80LA,––
| (i) | who has exercised the option under sub-section (5) for any previous year relevant to the assessment year beginning on or after the 1st day of April 2021 but before the 1st day of April 2024; | |
| (ii) | whose total income is computed under sub-section (1A), |
The conditions contained in sub-section (2) shall be modified to the extent that the deduction under section 80LA shall be available to such Unit subject to fulfillment of the conditions contained in the said section.
Explanation.—For the purposes of this sub-section, the term “Unit” shall have the meaning assigned to it in clause (zc) of section 2 of the Special Economic Zones Act, 2005 (28 of 2005).
Following second proviso shall be inserted after the existing proviso to sub-section (5) of section 115BAC by the Finance Act, 2023, w.e.f. 1-4-2024:
Provided further that the provisions of this sub-section shall not apply for any previous year relevant to the assessment year beginning on or after the 1st day of April, 2024.
Following sub-section (6) shall be inserted after sub-section (5) of section 115BAC by the Finance Act, 2023, w.e.f. 1-4-2024:
(6) Nothing contained in sub-section (1A) shall apply to a person where an option is exercised by such person, in the manner as may be prescribed, for any assessment year, and such option is exercised,––
| (i) | on or before the due date specified under sub-section (1) of section 139 for furnishing the return of income for such assessment year, in case of a person having income from business or profession, and such option once exercised shall apply to subsequent assessment years; or | |
| (ii) | along with the return of income to be furnished under sub-section (1) of section 139 for such assessment year, in case of a person not having income referred to in clause (i): |
Provided that the option under clause (i), once exercised for any previous year can be withdrawn only once for a previous year other than the year in which it was exercised and thereafter, the person shall never be eligible to exercise the option under this sub-section, except where such person ceases to have any income from business or profession in which case, option under clause (ii) shall be available.
