The Finance Minister presents the Union Budget every year on 1st February. Accordingly, the new income tax slabs/rates become applicable for the succeeding financial year.
Let us understand the income tax slabs under old tax regime and new tax regime for FY 2023-24 i.e., AY 2024-25:
Income Tax Slabs under Old Tax Regime
For Individuals/HUFs below the age of 60 years
| Income Tax Slab | Income Tax Rate |
| Up to INR 2,50,000 | NIL |
| INR 2,50,001 to INR 5,00,000 | 5% above INR 2,50,000 |
| INR 5,00,001 to INR 10,00,000 | INR 12,500 + 20% above INR 5,00,000 |
| Above INR 10,00,000 | INR 1,12,500 + 30% above INR 10,00,000 |
For Senior Citizens (Individuals/HUFs between the age of 60 years-80 years)
| Income Tax Slab | Income Tax Rate |
| Up to INR 3,00,000 | NIL |
| INR 3,00,001 to INR 5,00,000 | 5% above INR 3,00,000 |
| INR 5,00,001 to INR 10,00,000 | INR 10,000 + 20% above INR 5,00,000 |
| Above INR 10,00,000 | INR 1,10,000 + 30% above INR 10,00,000 |
For Super Senior Citizens (Individuals/HUFs above the age of 80 years)
| Income Tax Slab | Income Tax Rate |
| Up to INR 5,00,000 | NIL |
| INR 5,00,001 to INR 10,00,000 | 20% above INR 5,00,000 |
| Above INR 10,00,000 | INR 1,00,000 + 30% above INR 10,00,000 |
Cess: An additional 4% Health and Educational Cess will be applicable to the tax amount calculated.
Surcharge: It depends upon your income range and is taxed on the income tax. Rates of surcharge for individuals/HUFs opting for old tax regime rates are as below:
| Income Range | INR 50 lakhs to INR 1 Cr. | INR 1 Cr. to INR 2 Cr. | INR 2 Cr. to INR 5 Cr. | Above INR 5 Cr. |
| Surcharge Rate | 10% | 15% | 25% | 37% |
Income Tax Slabs for Individuals/HUFs under New Tax Regime
| Income Tax Slab | Income Tax Rate |
| Up to INR 3,00,000 | NIL |
| INR 3,00,001 to INR 6,00,000 | 5% above INR 3,00,000 |
| INR 6,00,001 to INR 9,00,000 | INR 15,000 + 10% above INR 6,00,000 |
| INR 9,00,001 to INR 12,00,000 | INR 45,000 + 15% above INR 9,00,000 |
| INR 12,00,001 to INR 15,00,000 | INR 90,000 + 20% above INR 12,00,000 |
| Above INR 15,00,000 | INR 1,50,000 + 30% above INR 15,00,000 |
Cess: An additional 4% Health and Educational Cess will be applicable to the tax amount calculated.
Surcharge: Rates of surcharge for individuals/HUFs opting for new tax regime rates are as below:
| Income Range | INR 50 lakhs to INR 1 Cr. | INR 1 Cr. to INR 2 Cr. | Above INR 2 Cr |
| Surcharge Rate | 10% | 15% | 25% |
Income Tax Slabs for Other than Individuals/HUFs
Rate for AOP/BOI/Any other artificial juridical person
| Net Income Range | Income Tax Rates |
| Up to INR 2,50,000 | NIL |
| INR 2,50,000 to INR 5,00,000 | 5% |
| INR 5,00,000 to INR 10,00,000 | 20% |
| Above INR 10,00,000 | 30% |
Cess and Surcharge are the same as the rate applicable to Individuals and HUFs.
Rates for Partnership Firms
| Tax rate | 30% |
| Cess | 4% |
| Surcharge (applicable only if total income exceeds INR 1 Cr.) | 12% |
Rates for Domestic Companies
| Domestic Company | Tax Rates |
| if opted for Section 115BA | 25% |
| if opted for Section 115BAA | 22% |
| if opted for Section 115BAB (Manufacturing) | 15% |
| Any other Domestic Company | 30% |
Cess: An additional 4% Health and Educational Cess will be applicable to the tax amount and surcharge.
Surcharge applicable to companies:
- 7% in case total income > INR 1 Cr.
- 12% in case total income > INR 10 Cr.
- Flat 10% in case > company opted for Section 115BAA & 115BAB
Rates for co-operative society
| Net Income Range | Income Tax Rates |
| Up to INR 10,000 | 10% |
| INR 10,000 to INR 20,000 | 20% |
| Above INR 20,000 | 30% |
Cess: An additional 4% Health and Educational Cess will be applicable to the tax amount calculated above.
Surcharge W.e.f AY 2023-24,
- 7% in case the net income range is INR 1 Cr. to INR 10 Cr.
- 12% in case net income is more than INR 10 Cr.
Rates for local authority
The local authority is taxable at 30%.
Cess: An additional 4% Health and Educational Cess will be applicable to the tax amount calculated above.
Surcharge: 12% of Income Tax when total income exceeds INR 1 Cr.
What is Surcharge on Income Tax?
A surcharge is an additional charge on Income Tax. It was introduced with the principle that the rich should contribute more by way of tax, as compared to the poor. A Surcharge is calculated on total income tax and not on total income.
Surcharge Rates
The below table shows the surcharge on income tax applicable to any individual, HUF, AOP, BOI, or any artificial judicial person.
| Nature of Income | More than 50L and up to 1 Cr. | More than 1 Cr. and up to 2 Cr. | More than 2 Cr. and up to 5 Cr. | More than 5 Cr. |
| STCG chargeable to tax u/s 111A | 10% | 15% | 15% | 15% |
| LTCG chargeable to tax u/s 112A | 10% | 15% | 15% | 15% |
| Any Other Income | 10% | 15% | 25% | 37% (25% in case of new tax regime u/s 115BAC) |
FAQs
Surcharge is an additional tax levied on taxpayers who have a higher income. It is calculated as a percentage of the total tax payable and the rate of the surcharge depends upon the income slab that the taxpayer falls under.
1. Calculate your Gross Total Income (GTI)
2. Reduce the deductions under sections 80C to 80U
3. Calculate your Tax Payable as per Income Tax slabs
4. Deduct the amount of rebate allowed
The basic exemption limit depends upon the age and income of the taxpayer.
Basic exemption limit under old tax regime:
For individuals below the age of 60 years: INR 2.5lakh,
For senior citizens between the age of 60 years and 80 years: INR 3 lakh,
For super senior citizens above the age of 80 years: INR 5 lakh.
In case of new tax regime, the basic exemption limit is INR 3 lakh.
No. Only resident individuals can claim the benefit of rebate u/s 87A.
Hey @TeamQuicko
Can I opt out of New Scheme once opted in???
If I want to opt for the New regime but had told my employer that I am choosing the existing one, can I select new tax regime while filing ITR??
Hey @riya_gupta
An individual having salaried income and no business income has the option to choose between the old and new tax regimes every year i.e. he/she can switch regimes from year to year.
However, individuals having business income are not eligible to choose between the new and old tax regime every year. Once they have opted for the new tax regime, they only have a one-time option of switching back to the old tax regime in their lifetime.
Once they switch back, they will not be allowed to opt for new tax regime again.
Hey @TanyaChopra
If you have opted for old tax regime with your employer for TDS on salary, and plan to opt the new tax regime at the time of filing ITR, then you can do that by filling the new form i.e. 10-IE.
Can full-time traders claim expenses like Broker charges STT, GST + other expenses like computer buy for trading, internet connection bill etc under new tax slabs?
Apart from the tax-saving criteria, which tax slab is better for a first-time taxpayer?
Hey @HarishMehta
If you forget to fill the new form i.e. Form 10-IE, at the time of filing ITR, then you may be disallowed the tax rates available under the new tax regime. The tax department will calculate your income tax liability based on the existing/old tax regime.
Hey @SonalYadav
These budget changes will be applicable from FY 2020-21. From FY 2020-21 it will be up to the taxpayer to select the tax regime based on their Income and Investments situation.
Following are the pros of following a new tax regime:
Following are the cons of following a new tax regime:
Hope this helps!
Hey @HarshitShah
Yes, any individual taxpayer can opt for new tax slabs, there are no restrictions based on type of income earned by a taxpayer.
Under new tax slabs, you will be able to claim all the direct expenses related to your business activity while calculating your taxable income.
Hope this helps!
I have carry forward losses in the previous financial years, is it allowed to claim losses under the new tax regime?