Tax Rates
In case of an Individual (resident or non-resident) or HUF or Association of Person or Body of Individual or any other artificial juridical person
Individuals– Other than senior and super senior citizen
| Net Income Range | Rate of Income-tax | |
| Assessment Year 2023-24 | Assessment Year 2022-23 | |
| Up to Rs. 2,50,000 | – | – |
| Rs. 2,50,000 to Rs. 5,00,000 | 5% | 5% |
| Rs. 5,00,000 to Rs. 10,00,000 | 20% | 20% |
| Above Rs. 10,00,000 | 30% | 30% |
Individuals– Senior citizen
Senior citizen– Who is 60 years or more at any time during the previous year
| Net Income Range | Rate of Income-tax | |
| Assessment Year 2023-24 | Assessment Year 2022-23 | |
| Up to Rs. 3,00,000 | – | – |
| Rs. 3,00,000 to Rs. 5,00,000 | 5% | 5% |
| Rs. 5,00,000 to Rs. 10,00,000 | 20% | 20% |
| Above Rs. 10,00,000 | 30% | 30% |
Individuals- Super Senior citizen
Super Senior citizen- Who is 80 years or more at any time during the previous year
| Net Income Range | Rate of Income-tax | |
| Assessment Year 2023-24 | Assessment Year 2022-23 | |
| Up to Rs. 5,00,000 | – | – |
| Rs. 5,00,000 to Rs. 10,00,000 | 20% | 20% |
| Above Rs. 10,00,000 | 30% | 30% |
Hindu Undivided Family (Including AOP, BOI and Artificial Juridical Person)
| Net Income Range | Rate of Income-tax | |
| Assessment Year 2023-24 | Assessment Year 2022-23 | |
| Up to Rs. 2,50,000 | – | – |
| Rs. 2,50,000 to Rs. 5,00,000 | 5% | 5% |
| Rs. 5,00,000 to Rs. 10,00,000 | 20% | 20% |
| Above Rs. 10,00,000 | 30% | 30% |
Surcharge
Surcharge is levied on the amount of income-tax at following rates if total income of an assessee exceeds specified limits:-
Assessment Year 2023-24
Range of Income
| Rs. 50 Lakhs to Rs. 1 Crore | Rs. 1 Crore to Rs. 2 Crores | Rs. 2 Crores to Rs. 5 Crores | Rs. 5 crores to Rs. 10 Crores | Exceeding Rs. 10 Crores |
| 10% | 15% | 25% | 37% | 37% |
Note 1: The enhanced surcharge of 25% & 37%, as the case may be, is not levied, from income chargeable to tax under sections 115AD(1)(b),111A, 112A and Dividend Income. Hence, the maximum rate of surcharge on tax payable on such incomes shall be 15%, except when the income is taxable under section 115A, 115AB, 115AC, 115ACA and 115E.
Note 2: As proposed in Budget 2022, Surcharge on income u/s. 112 on transfer of any capital asset shall be maximum 15% (applicable w.e.f AY 2023-24).
The long-term capital gains on listed equity shares, units etc. are liable to maximum surcharge of 15 per cent, while the other long term capital gains are subjected to a graded surcharge which goes up to 37 per cent. Budget 2022 propose to cap the surcharge on long term capital gains arising on transfer of any type of assets at 15 per cent.
Note 3: As proposed in Budget 2022, In case of an association of persons consisting of only companies as its members, the rate of surcharge on the amount of Income-tax shall be maximum 15% (applicable w.e.f AY 2023-24).
In the globalized business world, there are several works contracts whose terms and conditions mandatorily require formation of a consortium. The members in the consortium are generally companies. In such cases, the income of these AOPs has to suffer a graded surcharge upto 37 per cent, which is a lot more than the surcharge on the individual companies. Accordingly, Budget 2022 propose to cap the Surcharge of these AOP’s at 15 per cent.
| Net Income Range | Marginal Relief | |
| Exceeds | Do not Exceed | |
| 50 Lakh | 1 Crore | Amount payable as income tax and surcharge shall not exceed the total amount payable as income tax on total income of Rs 50 Lakh by more than the amount of income that exceeds Rs 50 Lakhs. |
| 1 Crore | 2 Crore | Amount payable as income tax and surcharge shall not exceed the total amount payable as income-tax on total income of Rs. 1 crore by more than the amount of income that exceeds Rs. 1 crore. |
| 2 Crore | 5 Crore | Amount payable as income tax and surcharge shall not exceed the total amount payable as income-tax on total income of Rs. 2 crore by more than the amount of income that exceeds Rs. 2 crore |
| 5 Crore | __ | Amount payable as income tax and surcharge shall not exceed the total amount payable as income-tax on total income of Rs. 5 crore by more than the amount of income that exceeds Rs. 5 crore |
C. Health and Education Cess: Health and Education Cess is levied at the rate of 4% on the amount of income-tax plus surcharge.
D. Rebate U/s 87A: A resident individual (whose net income does not exceed Rs. 5,00,000) can avail rebate under section 87A. It is deductible from income-tax before calculating education cess. The amount of rebate is 100 per cent of income-tax or Rs. 12,500, whichever is less.
Special tax Rate for Individual and HUFs
The Finance Act, 2020, has provided an option to Individuals and HUF for payment of taxes at the following reduced rates from Assessment Year 2021-22 and onwards:
| Total Income (Rs) | Rate |
| Up to 2,50,000 | Nil |
| From 2,50,001 to 5,00,000 | 5% |
| From 5,00,001 to 7,50,000 | 10% |
| From 7,50,001 to 10,00,000 | 15% |
| From 10,00,001 to 12,50,000 | 20% |
| From 12,50,001 to 15,00,000 | 25% |
| Above 15,00,000 | 30% |
Add: Surcharge is levied on the amount of income-tax at following rates if total income of an assessee exceeds specified limits: –
Income Tax Rates for HUF, AOP, BOI, Other Artificial Juridical Person for Assessment Year 2022-23 & 2023-24
| Net Income Range | Rate of Income-tax | |
| Assessment Year 2023-24 | Assessment Year 2022-23 | |
| Up to Rs. 2,50,000 | – | – |
| Rs. 2,50,000 to Rs. 5,00,000 | 5% | 5% |
| Rs. 5,00,000 to Rs. 10,00,000 | 20% | 20% |
| Above Rs. 10,00,000 | 30% | 30% |