Income Tax Rates And Basic Exemption Limit

Income tax rates are decided and governed by Income Tax Act 1961 and are subject to change every year. The rates differ incase of various concerns. The current tax rates are as provided below:

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Tax rate for Individual, HUF, AOP, BOI (Resident/ Non-resident)

Income Slab	Tax rate
Up to Rs 2.5 lakhs	Nil
Rs. 2.5 lakhs to Rs. 5 lakhs	5%
Rs 5.00 lakhs to Rs 10 lakhs	20%
> Rs 10.00 lakhs	30%

Tax rate for Senior citizen (Resident individual of age 60 years or more)

Income Slab	Tax rate
Up to INR 3 lakhs	Nil
INR 3 lakhs to INR 5 lakhs	5%
INR 5 lakhs to INR 10 lakhs	20%
INR 10 lakhs and above	30%

Tax rate for Senior citizen (Resident individual of age 80 years or more)

Income Slab	Tax rate
Up to INR 5 lakhs	Nil
INR 5 lakhs to INR 10 lakhs	20%
INR 10 lakhs and above	30%

Surcharge rate of 37% for person with taxable Income above ₹ 5 crore has been decreased to 25% w.e.f. FY 2023-24 through Finance bill 2023.

Maximum rate of surcharge on Income by way of dividend or long-term capital gain/short term capital gain on sale of equity shares is 15%.

Surcharge for Individual, HUF, AOP, BOI

Taxable income	Surcharge
Taxable Income above ₹ 50 lakh – up to ₹ 1 crore	10%
Taxable Income above ₹ 1 crore – up to ₹ 2 crore	15%
Taxable Income above ₹ 2 crore – up to ₹ 5 crore	25%
Taxable Income above ₹ 5 crore	37%

Rebate For Resident Individuals

Tax rebate is provided for resident individuals with net total income up to Rs. 5 lakhs. So, no income tax is payable by such resident individual with income up to Rs. 5 lakhs.

Tax rate for Partnership firm/LLP

The tax rate for partnership firm/LLP is 30% with surcharge @ 12%

Tax rate for companies

For domestic companies if the turnover for the year 2020-21 is up to Rs.400 crores, tax rate for AY 2023-24 is 25%.
For every other domestic company, the tax rate is 30%.
For foreign company, the tax rate is 40%.
Surcharge for company is applicable if net total income is more than 1 crores
For a domestic company surcharge is 7% if net total income is up to Rs. 10 crores and 12% is net total income exceeds Rs. 10 crores.
For a foreign company surcharge is 2% if net total income is up to Rs. 10 crores and 5% is net total income exceeds Rs. 10 crores.

Income Tax Rates And Basic Exemption Limit

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Tax rate for Individual, HUF, AOP, BOI (Resident/ Non-resident)

Tax rate for Senior citizen (Resident individual of age 60 years or more)

Tax rate for Senior citizen (Resident individual of age 80 years or more)

Surcharge for Individual, HUF, AOP, BOI

Rebate For Resident Individuals

Tax rate for Partnership firm/LLP

Tax rate for companies

Setting up business

ROC Compliance

Direct tax compliance

Indirect tax compliance