Every year finance minister comes with the income tax rate that are applicable for the relevant assessment year. Income tax rate are part of the finance act. Finance act contains different rates applicable on taxpayer each year. These rates may be constant, or it may be changed as per the industrial and economical requirement. When finance minister presents the budget, every taxpayer has eye on him/her with the positive hope that they would get some tax relief this year. The relief can be in the form of Exempted Income, Deduction allowance, Low tax rate, etc.
Income tax rates are different for different category of person. The rates prescribed under the act are as follow:
1. For Individual/HUF/BOI/AOP/Artificial Judicial person
The tax rates applicable to individual are applicable to Hindu Undivided Family (HUF), Body of Individual (BOI), Association of Person (AOP) and Artificial juridical person.
For any Resident who is less than 60 years of age on the last date of the previous year, Non-resident Individual, HUF, BOI, AOP, Artificial Juridical person:
| Net Income Range | Income tax rates | Health and education cess | Surcharge |
| Up to 2,50,000 | Nil | Nil | Nil |
| 2,50,000 to 5,00,000 | 5% of (total income – Rs. 2,50,000) | 4% of Income tax | Nil |
| 5,00,000 to 10,00,000 | 12500+ 20% of (total income – Rs. 5,00,000) | 4% of Income tax | Nil |
| 10,00,000 to 50,00,000 | 1,12,500+ 30% of (total income – Rs. 10,00,000) | 4% of Income tax | Nil |
| 50,00,000 to 1,00,00,000 | 13,12,500 + 30% of (total income – Rs. 50,00,000) | 4% of Income tax | 10% of income tax |
| 1,00,00,000 to 2,00,00,000 | 28,12,500 + 30% of (total income – Rs. 1,00,00,000) | 4% of Income tax | 15% of income tax |
| 2,00,00,000 to 5,00,00,000 | 58,12,500 + 30% of (total income – Rs. 1,00,00,000) | 4% of Income tax | 25% of income tax |
| Above 5,00,00,000 | 1,48,12,500 + 30% of (total income – Rs. 1,00,00,000) | 4% of Income tax | 37% of income tax |
For resident senior citizen who is at least 60 years of age at any time during the previous year but less than 80 years on the last date of previous year.
| Net Income Range | Income tax rates | Health and education cess | Surcharge |
| Up to 3,00,000 | Nil | Nil | Nil |
| 3,00,000 to 5,00,000 | 5% of (total income – Rs. 3,00,000) | 4% of Income tax | Nil |
| 5,00,000 to 10,00,000 | 10,000+ 20% of (total income – Rs. 5,00,000) | 4% of Income tax | Nil |
| 10,00,000 to 50,00,000 | 1,10,000+ 30% of (total income – Rs. 10,00,000) | 4% of Income tax | Nil |
| 50,00,000 to 1,00,00,000 | 13,10,000 + 30% of (total income – Rs. 50,00,000) | 4% of Income tax | 10% of income tax |
| 1,00,00,000 to 2,00,00,000 | 28,10,000 + 30% of (total income – Rs. 1,00,00,000) | 4% of Income tax | 15% of income tax |
| 2,00,00,000 to 5,00,00,000 | 58,10,000 + 30% of (total income – Rs. 1,00,00,000) | 4% of Income tax | 25% of income tax |
| Above 5,00,00,000 | 1,48,10,000 + 30% of (total income – Rs. 1,00,00,000) | 4% of Income tax | 37% of income tax |
For resident senior citizen who is at 80 years or more at any time during the previous year
| Net Income Range | Income tax rates | Health and education cess | Surcharge |
| Up to 5,00,000 | Nil | Nil | Nil |
| 5,00,000 to 10,00,000 | 20% of (total income – Rs. 5,00,000) | 4% of Income tax | Nil |
| 10,00,000 to 50,00,000 | 1,00,000+ 30% of (total income – Rs. 10,00,000) | 4% of Income tax | Nil |
| 50,00,000 to 1,00,00,000 | 13,00,000 + 30% of (total income – Rs. 50,00,000) | 4% of Income tax | 10% of income tax |
| 1,00,00,000 to 2,00,00,000 | 28,00,000 + 30% of (total income – Rs. 1,00,00,000) | 4% of Income tax | 15% of income tax |
| 2,00,00,000 to 5,00,00,000 | 58,00,000 + 30% of (total income – Rs. 1,00,00,000) | 4% of Income tax | 25% of income tax |
| Above 5,00,00,000 | 1,48,00,000 + 30% of (total income – Rs. 1,00,00,000) | 4% of Income tax | 37% of income tax |
Note:
- A resident individual can claim rebate under section 87A whose net income does not exceed Rs. 5,00,000. The amount of rebate is 100% or Rs.12,500, whichever is less.
- Surcharge is subject to marginal relief.
2. Partnership Firm:
Partnership Firm/LLP is taxable at the rate of 30%. Surcharge of 12% on income tax is applicable if net income exceeds Rs. 1 crore.
3. Companies:
| Company | Assessment year 2022-23 (Rates) | Assessment year 2023-24 (Rates) |
| Domestic Company- i) Where total turnover or gross receipt during the previous year 2019-20 is up to Rs. 400 crores ii) Where total turnover or gross receipt during the previous year 2020-21 is up to Rs. 400 crores iii) Any other domestic company | 25% NA 30% | NA 25% 30% |
| Foreign Company- i) Royalty received from Government or an Indian concern in pursuance of an agreement made with the Indian concern after March 31, 1961, but before April 1, 1976, or fees for rendering technical services in pursuance of an agreement made after February 29, 1964 but before April 1, 1976 and where such agreement has, in either case, been approved by the Central Government ii) Any other income | 50% 40% | 50% 40% |
Surcharge: The amount of income-tax shall be increased by a surcharge at the rate of 2% of such tax, where total income exceeds one crore rupees but not exceeding ten crore rupees and at the rate of 5% of such tax, where total income exceeds ten crore rupees. However, the surcharge shall be subject to marginal relief, which shall be as under:
- Where income exceeds one crore rupees but not exceeding ten crore rupees, the total amount payable as income-tax and surcharge shall not exceed total amount payable as income-tax on total income of one crore rupees by more than the amount of income that exceeds one crore rupees.
- Where income exceeds ten crore rupees, the total amount payable as income-tax and surcharge shall not exceed total amount payable as income-tax on total income of ten crore rupees by more than the amount of income that exceeds ten crore rupees.
- Co-operative Society: For Assessment Year 2022-23 and Assessment Year 2023-24
| Taxable income | Tax Rate |
| Up to Rs. 10,000 | 10% |
| Rs. 10,000 to Rs. 20,000 | 20% |
| Above Rs. 20,000 | 30% |
Note: %. Surcharge of 12% on income tax is applicable if total income exceeds Rs. 1 crore.
Note:
- Short term capital gains are taxable at 15% tax rate under section 111A
- Long term capital gains are taxable at 20% tax rate under section 112
- Long term capital gain in excess of Rs. 1 lakh is taxable at the rate of 10% under section 112A of the income tax act.
You may contact us at mail@nbaoffice.com for any information or query relating to income tax provisions or if you are looking for any consultancy of income tax.
