Income Tax Slab Rates for F.Y. 2023-24/A.Y. 2024-25
Income Tax Slab Rates for FY 2023-24/AY 2024-25
Income tax is basically calculated using income tax slabs and rates for the applicable assessment year (AY) and financial year (FY). As part of the Union Budget 2023-24, the income tax slabs for AY 2024-25 were published on February 1, 2023. The Finance Minister has made no changes in the regular tax regime in the Union Budget 2023. However, various changes have been made to make the new tax regime more appealing. In this article, We have presented comparative Income Tax Slab Rates for FY 2023-24/AY 2024-25.
Income Tax Slab Rates
Taxpayers must pay income tax according to their slab system. Depending on their Income, individuals may fall into a different tax bracket. As a result, higher-income persons will have to pay more taxes. The slab rate change with each budget announcement.
Union Budget 2023-2024: Highlights on Income Tax
- In the 2023-2024 budget, income tax slab rates have been substantially revamped under the new income tax regime.
- In the new income tax regime, the tax rebate limit (basic income tax exemption limit) for salaried and individual taxpayers has been raised to Rs.3 lakh.
- The tax rebate limit available for individual and salaried taxpayers under the new income tax regime has been hiked to Rs.7 lakh from the present Rs.5 lakh
For details on Highlights of Union Budget 2023-2024, click here.
Note: The Interim Budget for 2024-2025 did not alter direct taxes.
The Tax rate for an individual or HUF under the Normal Tax Regime
An Individual or a Hindu Undived Family is not liable to pay income tax if their average Income exceeds the basic exemption limit. The basic tax exemption limit and the tax rate in the case of an individual depend upon their age during the previous year.
Tax rates for individuals or HUF
| Net Income Range |
Rate of income-tax (%) |
| Up to Rs.2,50,000 | – |
| 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 |
Tax rates for Senior Citizens
An individual who turned 60 during the previous year, but was younger than 80 on the last day of the previous year, qualifies for the following tax rate:
| Net Income Range | Rate of income-tax |
| Up to Rs. 3,00,000 | – |
| 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 |
Tax rates for Super senior citizens
This applies to individuals aged 80 or older at any time during the previous year.
| Net Income Range | Rate of income-tax |
| Up to Rs. 5,00,000 | – |
| Rs. 5,00,001 to Rs. 10,00,000 | 20 |
| Above Rs. 10,00,000 | 30 |
Tax rates for individuals or HUF opting for an Alternate Tax Regime under Section 115BAC
Tax rates for individuals or HUF opting for an Alternate Tax Regime
Income-tax Act provides for a progressive tax system for individuals or HUFs. Under an advanced tax system, the rate of tax rate increases as the total income increases.
Alternate Tax Regime
The Finance Act of 2020 inserted a new Section 115BAC which provides an alternative tax regime for individuals and HUF. This section offers a new tax slab wherein the tax rates have been significantly reduced. However, to avail of the benefit of this tax regime, the assessee has to give up specified exemptions and deductions.
In the Union Budget 2023, the new tax regime’s maximum exemption limit and tax brackets have been revised. Further, salaried employees are entitled to a standard deduction even if opted for the new government.
The Income tax rate for an Individual or HUF who opts for the alternate tax regime:
| Net Income Range |
Rate of income-tax (%) (FY 2022-23) |
Rate of income-tax (%) (FY 2023-24) |
| Up to Rs. 2,50,000 | – | – |
| Rs. 2,50,001 to Rs. 3,00,000 | 5 | – |
| Rs. 3,00,001 to Rs. 5,00,000 | 5 | 5 |
| Rs. 5,00,001 to Rs. 6,00,000 | 10 | 5 |
| Rs. 6,00,001 to Rs. 7,50,000 | 10 | 10 |
| Rs. 7,50,001 to Rs. 9,00,000 | 15 | 10 |
| Rs. 9,00,001 to Rs. 10,00,000 | 15 | 15 |
| Rs. 10,00,001 to Rs. 12,00,000 | 20 | 15 |
| Rs. 12,00,001 to Rs. 12,50,000 | 20 | 20 |
| Rs. 12,50,001 to Rs. 15,00,000 | 25 | 20 |
| Above Rs. 15,00,000 | 30 | 30 |
Tax rebate as per section 87A of Income tax
Tax rebate for the old tax regime
- An individual in India is allowed a tax rebate under section 87A of Income tax if the total Income of such an individual does not exceed Rs.500000. The rebate is entitled to the extent of Rs. 12500.
- If the total tax is less than or equal to Rs. 12,500, an individual can claim the whole amount as a rebate.
Tax rebate for the new tax regime
- For the new tax regime, a rebate applies to resident individuals whose total Income during the previous year does not exceed Rs.7 00,000.
- Rebate is available to Rs. 25000 only, and no rebate will be available if the total Income exceeds Rs. 7 00,000.
The Tax Rate for the AOP or BOI or AJP
The tax rates depend on the type of firm. However, an Association of Persons (AOP) or Body of Individuals (BOI) is not liable to pay tax if its average Income exceeds the maximum or basic exemption limit.
| Net Income Range | Rate of income-tax |
| Up to Rs. 2,50,000 | – |
| 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% |
Tax rates for the AOP /BOI/ AJP opting for an Alternate Tax Regime
As per the Union Budget 2023, the new regime under Section 115BAC is applicable in the case of AOP, BOI, and AJP.
Tax rates for the AOP /BOI/ AJP opting for an Alternate Tax Regime are given below:
| Net Income Range |
Rate of income-tax (FY 2023-24) |
| Up to Rs. 3,00,000 | – |
| Rs. 3,00,001 to Rs. 6,00,000 | 5% |
| Rs. 6,00,001 to Rs. 9,00,000 | 10% |
| Rs. 9,00,001 to Rs. 12,00,000 | 15% |
| Rs. 12,00,001 to Rs. 15,00,000 | 20% |
| Above Rs. 15,00,000 | 30% |
The tax rate for Company
Tax rates for Domestic Companies
Income-tax Act allows a domestic company to select from the below-mentioned taxation regime subject to fulfillment of certain conditions.
| Section | Conditions | Tax Rates |
| Section 115BA |
The Company is set up and registered on or after March 1 2016; The company is engaged in the manufacturing or production The company does not claim specified exemptions, incentives, or deductions. |
25% |
| Section 115BAB |
The Company is set up and registered on or after October 1 2019; The company is engaged in the manufacturing or production It commences the manufacturing process on or after 01/10/2019 but on or before 31/03/2024 The company does not claim specified incentives, exemptions, or deductions. |
15%- Income from manufacturing and short-term capital gain from the depreciable asset;
22%- Income from non-manufacturing activities and short-term capital gain from non-depreciable asset |
| Section 115BAA | If the Company does not claim specified exemptions, deductions, or incentives | 22% |
| First Schedule to Finance Act 2010 | If the total turnover or gross receipts of the Company during the fiscal year 2021-22 does not exceed Rs. 400 crores | 25% |
| First Schedule to Finance Act 2010 | Any other domestic firm | 30% |
Tax rates for Foreign Companies
A foreign company is liable to pay income tax at 40% of the average taxable Income.
The tax rate for a Cooperative Society
The tax rates in the case of cooperative societies have been enumerated below:
Normal Tax Rates
In general, a cooperative society is liable to pay tax as per the following rates:
| Net Income Range | Rate of income-tax |
| Up to Rs. 10,000 | 10% |
| Rs. 10,001 to Rs. 20,000 | 20% |
| Above Rs. 20,000 | 30% |
The tax rate for alternate tax regime under section 115BAD
Suppose a cooperative society opts for the alternate tax regime as per section 115BAD. In that case, the Income shall be taxable at 22%, and a surcharge shall be levied at 10% of the income tax, irrespective of the Income of such cooperative society.
The tax rate for alternate tax regime under section 115BAE
If a cooperative society opts for the alternate tax regime as per section 115BAE, the Income shall be taxable at the below-mentioned rates:
| Income | Tax Rates |
| cooperative society Income from manufacturing activities | 15% |
| cooperative society Income from non-manufacturing activities | 22% |
| Short-term capital gain from transfer of depreciable assets | 15% |
| Short-term capital gain from transfer of non-depreciable assets | 22% |
| The excess profit derived due to arranged affairs | 30% |
| Special Incomes of cooperative society | Special tax rates |
The surcharge shall further increase the tax calculated on the total Income. The surcharge shall be levied at 10% of the total income tax. The income tax and the tariff shall be further increased by a health and education cess calculated at 4% of such income tax and surcharge.
The tax rate for partnership firms, Including LLP or local authorities
A partnership firm, LLP, or a local authority must pay income tax at 30% of average taxable Income.
The rate of health and education cess
Each person must pay a 4% health and education cess on their income tax plus a surcharge.
Latest Update on the Pay Later Option for Income Tax Filing
The Income Tax e-filing portal has recently rolled out a ‘Pay Later’ option, allowing you to complete your tax filing process before making any tax payments. You can pay taxes after you are done filing. For additional information, please refer to our guide – Pay later option for the Income tax return filing.
