Taxmann Union Budget | Income Tax Slab Rates for FY 2024-25

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Welcome to Taxmann.com | Newsletter – Reporting the Facts with Taxmann's Analysis. Today's edition brings you an important update on the Income Tax Slab Rates for FY 2024-25. Here's a concise overview to help you plan your finances.

The income-tax rates in the old tax regime for Assessment Year 2025-26 are the same as applicable in Assessment Year 2024-25. However, the income-tax slabs in the new tax regime for Assessment Year 2025-26 have been revised. The comparative tax tables are provided below for your reference.

1. Tax Rates

1.1 Slab Rates for Individual or HUF Opting for Old Tax Regime*

* Rebate under Section 87A is available for both assessment years 2024-25 and 2025-26 to the resident individuals whose total income during the previous year does not exceed Rs. 5,00,000. Rebate is available to the extent of Rs. 12,500 only, and no rebate will be available if the total income exceeds Rs. 5,00,000.

1.2 Slab Rates for Individuals or HUF Under the New Tax Regime of Section 115BAC

? Rebate under Section 87A is available for both assessment years 2024-25 and 2025-26 to the resident individuals whose total income during the previous year does not exceed Rs. 7,00,000. Rebate is available to the extent of Rs. 25,000 only, and no rebate will be available if the total income exceeds Rs. 7,00,000.

1.3 Tax Rates for AOP/BOI Opting for the Old Tax Regime

1.4 Tax Rates for AOP/BOI Under the New Tax Regime of Section 115BAC (Applicable From Assessment Year 2024-25)

1.5 Tax Rates for the Company

1.6 Tax Rates for Co-Operative Society

* With effect from the assessment year 2024-25, a new alternative tax regime is proposed for the manufacturing co-operative societies set up on or after 01-04-2023, commencing manufacturing or production on or before 31-03-2024. They can pay tax at a concessional rate of 15% with a trade-off with specific incentives and deductions. Where the income is not derived or incidental to the manufacturing or production of an article or thing, it shall be taxed at 22%.

1.7 Tax Rates for Other Entities

2. Rates of Surcharge

2.1 Rate of Surcharge Applicable to the Individual, HUF, AOP** (Except AOP With All Members as a Company), BOI or AJP

* From the assessment year 2024-25, the surcharge rates on other income for Individuals, HUFs, AOP, BOI or Artificial Juridical Persons opting to pay tax under the default tax regime of Section 115BAC shall not exceed 25%. Thus, the income exceeding Rs. 5 crores shall be subject to the surcharge rate of 25% if the assessee goes with the default tax regime of Section 115BAC.

** From the assessment year 2023-24, the surcharge rates for AOP with all members as a company shall not exceed 15%.

2.1 Rate of Surcharge in Case of Any Other Assessee

3. Health and Education Cess

The Health and Education Cess at the rate of 4% shall be charged on the aggregate of income-tax and surcharge.

That’s it from us for today!

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