New Slab of Income Tax in India For F.Y. 2024-25 and A.Y. 2025-26

The tax Structure in India is far different from other developed countries. Income Tax Act, 1961 has defined a slab of Income tax on the basis of which every person is required to pay tax in the country. A tax collected by the Government in the form of Income Tax is Direct Tax which is used by the Govt. for various public purposes such as defense, improvement of infrastructure, salaries to the government employees, etc.

The basic exemption limit under the Income Tax Act, of 1961 is Rs 3,00,000 for both Individuals and HUF. No such limit has been defined for Companies, Partnership Firms, AOP, and BOI. They have to pay tax on their profits without any limit.

The budget of the Finance Act, 2018 has not introduced any change in the slab rate. However, Govt has announced a change in Education and Secondary Education Cess from 3% to 4% which is required to be paid over Income Tax.

Also Read: Who is Required to Fill Income Tax Return

Let’s understand the slab rate given under the Income Tax Act,1961 for the Financial Year 2024-25 :-

Latest Slab of Income Tax For F.Y. 2024-25

Slab of Income Tax for Individuals :-

• Individuals whose GTI is not more than Rs 3 Lakh get a tax benefit of rebate up to Rs 2500 u/s 87A.
• A 10% surcharge is applicable when the Total Income of an Individual exceeds Rs 50 lakhs but is limited to Rs 1 Crore.
• On the income above Rs 1 crore, a surcharge will be applied at the rate of 15% instead of 10%.
• Education and Secondary Education cess at the rate of 4% is applicable after adding a surcharge to the Income Tax.

• Senior Citizens are also liable to pay the surcharge over and above Income Tax at the rate of 10% where the total income exceeds Rs 50 Lakhs but is limited to Rs 1 Crore.
• A 15% surcharge is applicable when the income exceeds Rs 1 Crore.
• Cess is applicable after the inclusion of a surcharge with the Income Tax.

• A surcharge of 10% is applicable to the income over and above Rs 50 Lakhs up to Rs 1 Crore for the Super Senior Citizens also.
• The rate of surcharge is 15% for Individuals whose Total Income is above Rs 1 crore.
• Education and Secondary education cess at the rate of 4% is applicable over the Income Tax including surcharge.

New Slab of Income Tax for Domestic Companies 

• The surcharge applies to the companies at the rate of 7% when their income exceeds Rs 1 Crore but is limited to Rs 10 Crore.
• The rate of surcharge is 12% when the total income exceeds Rs 10 Crore.
• In addition to the above Income Tax, Domestic Companies are also liable to pay 4% Education and Secondary Education Cess on the Income Tax plus surcharge.

Latest Slab of Income Tax Foreign Company –

• There is no basic exemption limit in the case of Foreign Companies, they have to pay Income Tax at the rate of 40% in India irrespective of the amount of profit.
• 2% surcharge is applicable on the tax where the total income exceeds Rs 1 Crore.
• 5% surcharge is applicable where the total income exceeds Rs 10 Crore.
• Cess at the rate of 4% is applicable on the Income Tax plus surcharge.

HUF/AOP/BOI/Any Other Artificial Juridical Person –

• A 10% surcharge is applicable where the Total Income exceeds Rs 50 Lakhs but is limited to Rs 1 Crore.
• The rate of Surcharge exceeds 15% where the Total Income Exceeds Rs 1 Crore.
• Cess is applicable at the rate of 4% on the Income Tax including a surcharge.

Slab of Income Tax in India for Partnership Firm

• The surcharge is applicable at the rate of 12% where the total income exceeds Rs 1 Crore.
• Cess at the rate of 4% is applicable on the Income Tax including Surcharge.

Slab Rate for Income Tax Local Authority

• A surcharge at the rate of 12% is applicable where the total income exceeds Rs 1 Crore.
• Cess at the rate of 4% is applicable on Income Tax including surcharge.

Slab Rate of a Co-operative Society

• Surcharge at the rate of 12% where the total income exceeds Rs 1 crore.
• Cess at the rate of 4% is applicable over the Income Tax including surcharge.

Conclusion – In the above article we have discussed the slab rates applicable for Individuals, Companies, Partnership Firm, HUF, AOP, BOI, Domestic Companies, Foreign Companies, Local Authorities, and Cooperative Society. We have also discussed the surcharge and cess applicable to all the above categories.

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