Income Tax

Income Tax basic exemption limit, slabs & rates for AY 2024-25

Income Tax basic exemption limit and tax slabs for individuals & HUFs for AY 2024-25 

The basic income tax exemption limit and tax slabs for individuals can be broadly categoriesd as under:

(i) Optional Simplified Personal Tax Regime (New Tax Regime) under section 115BAC, and

(ii)  Those not exercising option under Simplified Personal Tax Regime

A. Simplified Personal Tax Regime for AY 2024-25 

For the AY 2024-25, the basic exemption limit for New Tax Regime has been increased to Rs. 3 lakhs and number of tax slabs have bene reduced to five as under:

Upto Rs 3.00 lakhs Nil
Income more than Rs. 3 lakhs up to 6 lakh  5%
Income more than Rs. 6 lakhs up to 9 lakh  10%
Income more than 9 lakhs upto 12 lakhs  15%
Income more than 12 lakhs up to 15 lakhs 20%
Income above Rs. 15 Lkahs 30%

Simplified Personal Tax Regime for AY 2023-24

Income Tax basic exemption limit and slabs for taxation under Simplified Personal Tax Regime for AY 2023-24 are as under:

Upto Rs 2.50 lakhs Nil
Income more than Rs. 2.5 lakhs up to 5 lakh  5%
Income more than Rs. 5 lakhs up to 7.50 lakh  10%
Income more than 7.50 lakhs upto 10 lakhs  15%
Income more than 10 lakhs up to 12.50 lakhs 20%
Income more than 12.50 lakhs up to 15 lakhs 25%
Income above Rs. 15 Lkahs 30%

The assessee opting New Tax Regime are not entitled to claim any deductions.

B. Income Tax Basic Exemption Limit and tax slabs/rates for AY 2024-25 

No changes have been made to the existing basic exemption limit or in tax slabs/rates and will continue the same as for AY 2023-24 as under:

Currently for AY 2023-24 the Income Tax rates and slabs for Individual, HUF, association of persons, body of individuals, artificial juridical person not exercising the option under Simplified Personal Tax Regime  are as under:

(i) Individual resident aged below 60 years

Income Slabs Tax Rates
i. Where the taxable income does not exceed Rs. 2,50,000/-. NIL
ii. Where the taxable income exceeds Rs. 2,50,000/- but does not exceed Rs. 5,00,000/-. 5% 
iii. Where the taxable income exceeds Rs. 5,00,000/- but does not exceed Rs. 10,00,000/-. Rs. 12,500/- + 20% of the amount by which the taxable income exceeds Rs. 5,00,000/-.
iv. Where the taxable income exceeds Rs. 10,00,000/-. Rs. 112,500/- + 30% of the amount by which the taxable income exceeds Rs. 10,00,000/-.

(ii) Senior Citizen of the age of 60 years or more but below the age of 80 years 

Income Slabs Tax Rates
i. Up to Rs. 3,00,000/- NIL
ii. Where the taxable income exceeds Rs. 3,00,000/- but does not exceed Rs. 5,00,000/- 5%
iii. Where the taxable income exceeds Rs. 5,00,000/- but does not exceed Rs. 10,00,000/- 10,000/- + 20% of the amount by which the taxable income exceeds Rs. 5,00,000/-.
iv. Where the taxable income exceeds Rs. 10,00,000/- Rs. 110,000/- + 30% of the amount by which the taxable income exceeds Rs. 10,00,000/-.

(iii) Super Senior Citizen individual resident of the age of 80 years or more 

Income Slabs Tax Rates
i. Up to Rs. 5,00,000/-. Nil
ii. Where the taxable income exceeds Rs. 5,00,000/- but does not exceed Rs. 10,00,000/- 20% of the amount by which the taxable income exceeds Rs.  5,00,000/-.
iii. Where the taxable income exceeds ₹ 10,00,000/- Rs. 100,000/- + 30% of the amount by which the taxable income exceeds Rs. 10,00,000/-.

Surcharge on income tax 

(a) based on taxable income including capital gains on equity shares u/s 111A, 112 and 112A

Up to total income of Rs 50 lakhs  Nil
Taxable income exceeding Rs. 50 lacs and upto Rs. 1 crore 10%
Taxable income exceeding Rs. 1 crore but not exceeding Rs. 2 crore  15%
Taxable income exceeding Rs. 2 crore but not exceeding 5 crores 25%
Taxable income exceeding Rs. 5 crore but not exceeding Rs. 10 crores 37% 
Taxable income exceeding Rs. 10 crore 37%

(i) The maximum rate of surcharge on tax payable on dividend income or capital gain referred to in Section 112, shall be 15%. 

(ii) The surcharge rate for AOP with all members as a company, shall be capped at 15%.

For New Tax Regime however the maximum surcharge has been reduced from 37% to 25%

Health and Education Cess: 

Health and Education Cess is levied at the rate of 4% on the amount of income-tax plus surcharge

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