Tax Reckoner 2018-2019
Snapshot of Tax rates specific to Mutual Funds
The rates are applicable for the financial year 2018-19 and subject to enactment of the Finance Bill, 2018
Effective : 1st. April 2018
1. Income Tax Rates
For Individuals, Hindu Undivided Family, Association of Persons, Body of Individuals and Artificial juridical persons
| Total Income | Tax Rates |
| Up to Rs. 2,50,000 (a)(b)(d) | NIL |
| Rs. 2,50,001 to Rs. 5,00,000(d)(e) | 5% |
| Rs. 5,00,001 to Rs. 10,00,000(d) | 20% |
| Rs. 10,00,001 and above(c)(d) | 30% |
(a) In case of a resident individual of the age of 60 years or above but below 80 years, the basic exemption limit is Rs. 300,000.
(b) In case of a resident individual of age of 80 years or above, the basic exemption limit is Rs 500,000.
(c) Surcharge at 15% on base tax, is applicable where income exceeds Rs. 1 crore and at 10% where income exceeds Rs 50 lakhs but does not exceed Rs. 1 crore. Marginal relief for such person is available.
(d) Finance Bill, 2018 provides for Health and Education cess @ 4% on aggregate of base tax and surcharge.
(e) A rebate of lower of actual tax liability or Rs. 2,500 in case of individuals having total income of less than Rs. 350,000.
2. Securities Transaction Tax (STT)
STT is levied on the value of taxable securities transactions as under.
| Transaction | Rates | Payable By |
| Purchase/Sale of equity shares (delivery based) | 0.1% | Purchaser/Seller |
| Purchase of units of equity oriented mutual fund | Nil | Purchaser |
| Sale of units of equity oriented mutual fund 0.001% Seller (delivery based) | 0.001% | Seller |
| Sale of equity shares, units of equity oriented mutual fund (non-delivery based) | 0.025% | Seller |
| Sale of a option in securities | 0.05%* | Seller |
| Sale of an option in securities, where option is exercised | 0.125% | Purchaser |
| Sale of a futures in securities | 0.01% | Seller |
| Sale of units of an equity oriented fund to the Mutual Fund | 0.001% | Seller |
| Sale of unlisted equity shares and units of business trust under an initial offer | 0.2% | Seller |
3. Special rates for non-residents as per domestic provisions
(1) The following incomes in the case of non-resident are taxed at special rates on gross basis:
| Transation | Rates (a) |
| Dividend (b) | 20% |
| Interest received on loans given in foreign 20% currency to Indian concern or Government of India (not being interest referred to in section 194LB or section 194LC) |
20% |
| Income received in respect of units purchased in 20% foreign currency of specifies Mutual Funds / UTI |
20% |
| Royalty or fees for technical services | 10% |
| Interest income from a notified infrastructure 5% debt fund, specified loan agreement and specified long-term bonds | 5% |
| Interest on FCCB, FCEB / Dividend on GDRs(b) | 10% |
4. Capital Gains rates applicable to unit holders as per domestic provisions
| Transaction | Short-term capital gains tax rates (a) | Long-term capital gains tax rates (a)(b) |
| Sale transactions of equity shares / unit of an equity oriented fund which attract STT | 15% | 10% |
| Sale transaction other than mentioned above: | ||
| Individuals (resident and non-residents) | Progressive slab rates | 20% / 10%© |
| Firms | 30% | |
| Resident Companies | 30%(d) / 25%(e) | |
| Overseas financial organisations specified in section 115AB | 40% (corporate) 30% (non corporate) | 10% |
| FIIs | 30% | 10% |
| Other Foreign companies | 40% | 20% / 10%(c) |
| Local authority | 30% | 20% / 10% |
| Co-operative society rates | Progressive slab | |
(a) These rates will further increase by applicable surcharge & education cess.
(b) Indexation benefit as applicable
(c) Long term capital gains arising to a non-resident from transfer of unlisted securities or shares of a company, not being a company in which the public are substantially interested, subject to 10 per cent tax (without benefit of indexation and foreign currency fluctuation
(d) This rate applies to companies other than companies engaged in manufacturing business who are proposed to be taxed at lower rate subject to fulfillment of certain conditions
(e)If total turnover or gross receipts of the financial year 2016-17 does not exceed Rs. 250 crores.
5. Dividend Income :
Additional tax of 10% (plus applicable surcharge and health and education cess) is applicable in case of all resident tax payers, excluding domestic companies and few other specified entities for dividend income of more than Rs. 10,00,000 received from a domestic company or companies.
| Individual | Total Income | ||
| 1,000,000 | 5,000,000 | 11,000,000 | |
| Tax in FY 2017-18 | 1,15,875 | 1,657,013 | 3,686,756 |
| Tax in FY 2018-19 | 1,17,000 | 1,673,100 | 3,722,550 |
| Additional Tax Burden/(Savings) | 1,125 | 16,085 | 35,794 |
| Additional Tax Burden/ (Savings) (%) | 0.97% | 0.97% | 0.97% |
| Resident senior citizen (age of 60 years but below 80 years) | Total Income | ||
| 1,000,000 | 5,000,000 | 11,000,000 | |
| Tax in FY 2017-18 | 1,13,300 | 1,654,180 | 3,683,795 |
| Tax in FY 2018-19 | 1,14,400 | 1,670,240 | 3,719,560 |
| Additional Tax Burden/(Savings) | 1,100 | 16,060 | 35,765 |
| Additional Tax Burden/ (Savings) (%) | 0.97% | 0.97% | 0.97% |
| Resident very senior citizen at the age of 80 years and above | Total Income | ||
| 1,000,000 | 5,000,000 | 11,000,000 | |
| Tax in FY 2017-18 | 1,03,000 | 1,642,850 | 3,671,950 |
| Tax in FY 2018-19 | 1,04,000 | 1,658,800 | 3,707,600 |
| Additional Tax Burden/ (Savings) | 1,000 | 15,950 | 35,650 |
| Additional Tax Burden/ (Savings) (%) | 0.97% | 0.97% | 0.97% |
| Marginal relief as applicable would be available | |||
Tax Implications on Dividend received by Unit holders
| Individual HUF | Domestic Company | NRI | |
| Dividend | |||
| Equity oriented Schemes | Nil | Nil | Nil |
| Debt oriented Schemes | Nil | Nil | Nil |
| Tax on Distributed income rates (payable by the scheme)** | |||
| Equity oriented Schemes* | 10% + 12% Surcharge + 4% Cess = 11.648% | 10% + 12% Surcharge + 4% Cess = 11.648% | 10% + 12% Surcharge + 4% Cess = 11.648% |
| money market and Liquid schemes | 25% + 12% Surcharge + 4% Cess =29.12 % | 30% + 12% Surcharge + 4% Cess=34.944 % | 25% + 12% Surcharge + 4% Cess=29.12 % |
| Infrastructure Debt Fund | 25% + 12% Surcharge + 4% Cess=29.12 % | 30% + 12% Surcharge + 4% Cess=34.944 % | 5% + 12% Surcharge + 4% Cess=5.824 % |
| * Security transaction tax (STT) will be deducted on equity funds at the time of redemption / switch to the other schemes / sale of units. | |||
| ** For the purpose of determining the tax payable by the scheme, the amount of distributed income has to be increased to such amount as would, after reduction of tax on such increased amount, be equal to the income distributed by the Mutual Fund. In other words, the amount payable to unit holders is to be grossed up for determining the tax payable and accordingly, the effective tax rate would be higher.
The above-mentioned rate is without considering the grossing up. Surcharge mentioned in the above table is payable on base tax. Further, “Education cess” and “Secondary and Higher Education cess” is proposed to be discontinued. However, new cess called Health and Education Cess is proposed to be levied at 4% on aggregate of base tax and surcharge. |
|||
Capital Gain Taxation
| Individual / HUF $ | Domestic Company @ | NRI $ # | |
| Equity Oriented Schemes Long Term Capital Gains (units held for more than 12 months) :: Short Term Capital Gains (units held for 12 months or less) |
|||
| Long Term capital gains | 10%* | 10%* | 10%* |
| Short term capital gains | 15% | 15% | 15% |
| Other Than Equity Oriented Schemes Long Term Capital Gains(units held for more than 36 months) :: Short Term Capital Gains (units held for 36 months or less ) |
|||
| Long Term capital gains | 20% | 20% | Listed – 20% Unlisted – 10% |
| Short term capital gains | 30% ^ | 30% ^ ^ / 25%^ ^ ^ | 30% ^ |
| Tax Deducted at Source (Applicable only to NRI Investors)# | ||
| Short term capital gains$ | Long term capital gains$ | |
| Equity oriented Schemes | 15% | 10% |
| Other than equity oriented Schemes | 30% ^ | Listed – 20%& Unlisted – 10%* |
$ Surcharge at 15% to be levied in case of individual/ HUF unit holders where their respective income exceeds Rs 1 crore.
@ Surcharge at 7% to be levied for domestic corporate unit holders where income exceeds Rs 1 crore but less than 10 crores and at 12%, where income exceeds 10 crores.
# Short term/ long term capital gain tax will be deducted at the time of redemption of units in case of NRI investors.
& After providing indexation.
* Without indexation and without taking into consideration foreign exchange fluctuation
^ Assuming the investor falls into highest tax bracket.
$ @ Education Cess at 3% will continue to apply on aggregate of tax and surcharge.
^^This rate applies to companies other than companies engaged in manufacturing business who are proposed to be taxed at lower rate subject to fulfillment of certain conditions. Further, the domestic companies are subject to minimum alternate tax not specified in above tax rates.
Transfer of units upon consolidation of mutual fund schemes of two or more schemes of equity oriented fund or two or more schemes of a fund other than equity oriented fund in accordance with SEBI (Mutual Funds) Regulations, 1996 is exempt from capital gains.
The Finance Bill, 2016 proposes to provide tax exemption to unit holders vis-Ã -vis transfer of units upon consolidation of the plans within a scheme of mutual fund in accordance with SEBI (Mutual Funds) Regulations, 1996.
In the absence of PAN of the investors, withholding tax / TDS applies at a higher rate if tax is deductible on the amount payable to such investor. The Finance Bill, 2016 proposes to provide relaxation to nonresidents from deduction of tax at higher rate in the absence of PAN subject to fulfillment of certain conditions.
Dividend Stripping: The loss due to sale of units in the schemes (where dividend is tax free) will not be available for setoff to the extent of tax free dividend declared; if units are:
(A) bought within three months prior to the record date fixed for dividend declaration; and (B) sold within nine months after the record date fixed for dividend declaration.
Bonus Stripping: The loss due to sale of original units in the schemes, where bonus units are issued, will not be available for set off; if original units are:
(A) bought within three months prior to the record date fixed for allotment of bonus units; and and
(B) sold within nine months after the record date fixed for allotment of bonus units. However, the amount of loss so ignored shall be deemed to be the cost of purchase or acquisition of such unsold bonus units.
Mutual Fund investments are subject to market risks, read all scheme related documents carefully.
Disclaimer: The information set out above is included for general information purposes only and does not constitute legal or tax advice. In view of the individual nature of the tax consequences, each investor is advised to consult his or her own tax consultant with respect to specific tax implications arising out of their participation in the Scheme. Income Tax benefits to the mutual fund & to the unit holder is in accordance with the prevailing tax laws as certified by the mutual funds tax consultant. Any action taken by you on the basis of the information contained herein is your responsibility alone.
2. Clients can update the following Non Financial information
Change in Name
Change in Address
Change in Pan
Nominee Registration
Tax status change
Change in Broker
Change in Dividend Payout Option
Change in Redemption Payout Option
Consolidation of Folios
Tax Reckoner 2017-2018
Snapshot of Tax rates specific to Mutual Funds
The rates are applicable for the financial year 2017-18 as per Finance Act, 2017.
Effective : 1st. April 2017.
1.Income Tax Rates
For Individuals, Hindu Undivided Family, Association of Persons, Body of
Individuals and Artificial juridical persons
| Total Income | Tax Rates |
| Up to Rs. 2,50,000 (a)(b) | NIL |
| Rs. 2,50,001 to Rs. 5,00,000(d)(e) | 5% |
| Rs. 5,00,001 to Rs. 10,00,000(d) | 20% |
| Rs. 10,00,001 and above(c)(d) | 30% |
(a) In the case of a resident individual of the age of 60 years or above but below 80 years, the basic exemption limit is Rs. 3,00,000.
(b) In case of a resident individual of age of 80 years or above, the basic exemption limit is Rs. 5,00,000.
(c) Surcharge @ 15% is applicable where income exceeds Rs. 1 crore. Finance Act, 2017 provides for surcharge at 10% to be levied where income exceeds Rs 50 lakhs but does not exceed Rs. 1 crore. Marginal relief for such person is available.
(d) Education cess is applicable @ 3% on aggregate of tax and surcharge.
(e) Finance Act, 2017 provides a rebate of lower of actual tax liability or Rs. 2,500 (against earlier rebate of R. 5,000) in case of individuals having total income of less than Rs. 3,50,000.
2. Securities Transaction Tax (STT)
STT is levied on the value of taxable securities transactions as under.
| Transaction | Rates | Payable By |
| Purchase/ Sale of equity shares | 0.1% | Purchaser/Seller |
| Purchase of units of equity oriented mutual fund (delivery based) | Nil | Purchaser |
| Sale of units of equity oriented mutual fund (delivery based) | 0.001% | Seller |
| Sale of equity shares, units of equity oriented mutual fund (non-delivery based) | 0.025% | Seller |
| Sale of a option in securities | 0.05% | Seller |
| Sale of an option in securities, where option is exercised | 0.125% | Purchaser |
| Sale of a futures in securities | 0.01% | Seller |
| Sale of unit of an equity oriented fund to the Mutual Fund | 0.001% | Seller |
| Sale of unlisted equity shares and units of business trust under an initial offer | 0.2% | Seller |
3. Special rates for non-residents
(1) The following incomes in the case of non-resident are taxed at special
rates on gross basis:
| Transation | Rate (a) |
| Dividend (b) | 20% |
| Interest received on loans given in foreign currency to Indian concern or Government of India (not being interest referred to in section 194LB or section 194LC) | 20% |
| Income received in respect of units purchased in foreign currency of specified Mutual Funds / UTI | 20% |
| Royalty or fees for technical services(c) | 10% |
| Interest income from a notified infrastructure debt fund, specified loan agreement, specified long-term bonds and rupee denominated bonds | 5% |
| Interest on FCCB, FCEB / Dividend on GDRs(b) | 10% |
(a) These rates will further increase by applicable surcharge and education cess.
(b) Other than dividends on which DDT has been paid.
(c) In case the non-resident has a Permanent Establishment (PE) in India and the royalty/ fees for technical services paid is effectively connected with such, the same could be taxed at 40% (plus applicable surcharge and education cess) on net basis.
(2) Tax on non-resident sportsmen or sports association on specified income @ 10% plus applicable surcharge and education cess.
Capital Gains
| Transaction | Short-term capital gains tax rates (a) | Long-term capital gains tax rates (a) |
| Sale transactions of equity shares / unit of an equity oriented fund which attract STT | 15% | NIL |
| Sale transaction other than mentioned above: | ||
| Individuals (resident and non-residents) | Progressive slab rates | 20% / 10%(c) |
| Firms | 30% | |
| Resident Companies | 30%(d)/25%(e) | |
| Overseas financial organisations specified in section 115AB | 40% (corporate) 30% (non corporate) | 10% |
| FIIs | 30% | 10% |
| Foreign companies other than ones mentioned above | 40% | 20% / 10%(C) |
| Local authority | 30% | 20% / 10% |
| Co-operative society rates | Progressive slab | |
* Finance Act, 2017 exempt income arising on transfer of equity share (subject to certain exceptions) acquired on or after 1st October 2004 only if the acquisition of such shares is chargeable to STT. (a) These rates will further increase by applicable surcharge & education cess. (b) Indexation benefit wherever applicable. (c) Long term capital gains arising to a non-resident from transfer of unlisted securities or shares of a company, not being a company in which the public are substantially interested, subject to 10 per cent tax (without benefit of indexation and foreign currency fluctuation. (d) This rate applies to companies other than companies engaged in manufacturing business who are to be taxed at lower rate subject to fulfillment of certain conditions. (e) If total turnover or gross receipts of the financial year 2015-16 does not exceed Rs. 50 crores.
Personal Tax Scenarios (Amount in Rupees)
| Individual | Income Level | ||
| 1,000,000 | 5,500,000 | 11,000,000 | |
| Tax in FY 2016-17 | 128,750 | 1,519,250 | 3,701,563 |
| Tax in FY 2017-18 | 115,875 | 1,657,013 | 3,686,756 |
| Additional Tax Burden/(Savings) | (12,875) | 137,763 | (14,807) |
| Additional Tax Burden/(Savings) (%) | (10%) | 9.07% | (0.40%) |
| Resident senior citizen (age of 60 years but below 80 years) | Income Level | ||
| 1,000,000 | 5,500,000 | 11,000,000 | |
| Tax in FY 2016-17 | 123,600 | 1,514,100 | 3,695,640 |
| Tax in FY 2017-18 | 113,300 | 1,654,180 | 3,683,795 |
| Additional Tax Burden/(Savings) | (10,300) | 140,080 | (11,845) |
| Additional Tax Burden/(Savings) (%) | (8.33%) | 9.25% | (0.32%) |
| Resident very senior citizen at the age of 80 years and above | Income Level | ||
| 1,000,000 | 5,500,000 | 11,000,000 | |
| Tax in FY 2016-17 | 103,000 | 1,493,500 | 3,671,950 |
| Tax in FY 2017-18 | 103,000 | 1,642,850 | 3,671,950 |
| Additional Tax Burden/(Savings) | NA | 149,350 | NA |
| Additional Tax Burden/(Savings) (%) | NA | 10% | NA |
| Marginal relief as applicable would be available | |||
Tax Implications on Dividend received by Unit holders
| Individual HUF | Domestic Company | NRI | |
| Dividend | |||
| Equity oriented Schemes | Nil | Nil | Nil |
| Debt oriented Schemes | Nil | Nil | Nil |
| Rate of tax on distributed income (payable by the MF scheme)** | |||
| Equity oriented Schemes* | Nil | Nil | Nil |
| Money market or Liquid schemes / debt schemes (other than infrastructure debt fund) | 25% + 12% Surcharge + 3% Cess=28.84 % | 30% + 12% Surcharge + 3% Cess=34.608 % | 25% + 12% Surcharge + 3% Cess=28.84 % |
| Infrastructure Debt Fund | 25% + 12% Surcharge + 3% Cess=28.84 % | 30% + 12% Surcharge + 3% Cess=34.608 % | 5% + 12% Surcharge + 3% Cess=5.768 % |
| * Securities transaction tax (STT) shall be payable on equity oriented mutual funds schemes at the time of redemption/switch to the other schemes/sale of units. | |||
| ** For the purpose of determining the tax payable by the scheme, the amount of distributed income has to be increased to such amount as would, after reduction of tax on such increased amount, be equal to the income distributed by the Mutual Fund. In other words, the amount payable to unit holders is to be grossed up for determining the tax payable and accordingly, the effective tax rate would be higher. | |||
Capital Gain Taxation
| Individual / HUF $ | Domestic Company @ | NRI $ | |
| Long Term Capital Gains (units held for more than 12 months) Short Term Capital Gains (units held for 12 months or less) | |||
| Long term capital gains | Nil | Nil | Nil |
| Short term capital gains | 15% | 15% | 15% |
| Long Term Capital Gains (units held for more than 36 months) short Term Capital Gains (units held for 36 months or less) | |||
| Long term capital gains | 20%& | 20%& | Listed – 20%& Unlisted – 10%* |
| Short term capital gains | 30% ^ | 30%^^/25%^^^ | 30% ^ |
| Tax Deducted at Source (Applicable only to NRI Investors)# | ||
| Short term capital gains$ | Long term capital gains$ | |
| Equity oriented Schemes | 15% | Nil |
| Other than equity oriented Schemes | 30% ^ | 10%* (for unlisted) & 20%& (for listed) |
| $ Surcharge at 15%, is applicable where income of Individual/HUF unit holders exceeds Rs. 1 crore. As per Finance Act, 2017, surcharge at 10% to be levied in case of individual/ HUF unit holders where income of such unit holders exceeds Rs. 50 lakhs but does not exceed Rs. 1 crore. Further, Education Cess at 3% will continue to apply on aggregate of tax and surcharge. @ Surcharge at 7% is applicable where income of domestic corporate unit holders exceeds Rs 1 crore but does not exceed 10 crores and at 12% where income exceeds 10 crores. Further, Education Cess at 3% will continue to apply on aggregate of tax and surcharge. # Short term/ long term capital gain tax will be deducted at the time of redemption of units in case of NRI investors. & After providing indexation. * Without indexation. ^ Assuming the investor falls into highest tax bracket. ^^This rate applies to companies other than companies engaged in manufacturing business who are taxed at lower rate subject to fulfillment of certain conditions. ^^^ If total turnover or gross receipts during the financial year 2015-16 does not exceed Rs. 50 crores.Further, the domestic companies are subject to minimum alternate tax not specified in above tax rates. Transfer of units upon consolidation of mutual fund schemes of two or more schemes of equity oriented fund or two or more schemes of a fund other than equity oriented fund in accordance with SEBI (Mutual Funds) Regulations, 1996 is exempt from capital gains. Transfer of units upon consolidation of plans within mutual fund schemes in accordance with SEBI (Mutual Funds) Regulations, 1996 is exempt from capital gains. Relaxation to non-residents from deduction of tax at higher rate in the absence of PAN subject to them providing specified information and documents. |
| Dividend Stripping:The loss due to sale of units in the schemes (where dividend is tax free) will not be available for setoff to the extent of tax free dividend declared; if units are:(A) bought within three months prior to the record date fixed for dividend declaration; and (B) sold within nine months after the record date fixed for dividend declaration.
Bonus Stripping:The loss due to sale of original units in the schemes, where bonus units are issued, will not be available for set off; if original units are: (A) bought within three months prior to the record date fixed for allotment of bonus units; and (B) sold within nine months after the record date fixed for allotment of bonus units. However, the amount of loss so ignored shall be deemed to be the cost of purchase or acquisition of such unsold bonus units. |
| Mutual Fund investments are subject to market risks, read all scheme related documents carefully. |
Disclaimer :The information set out above is included for general information purposes only and does not constitute legal or tax advice. In view of the individual nature of the tax consequences, each investor is advised to consult his or her own tax consultant with respect to specific tax implications arising out of their participation in the Scheme. Income Tax benefits to the mutual fund & to the unit holder is in accordance with the prevailing tax laws as certified by the mutual funds tax consultant. Any action taken by you on the basis of the information contained herein is your responsibility alone.
2. Clients can update the following Non Financial information
Change in Name
Change in Address
Change in Pan
Nominee Registration
Tax status change
Change in Broker
Change in Dividend Payout Option
Change in Redemption Payout Option
Consolidation of Folios
Income Tax Slabs FY 2023-24 & AY 2024-25 (New & Old Regime Tax Rates)
The income tax slabs are different under the old and the new tax regimes. Further, the slab rates under the old tax regime are divided into three categories
- Indian Residents aged < 60 years + All the non-residents
- 60 to 80 years: Resident Senior citizens
- More than 80 years: Resident Super senior citizens
Budget 2024 Update: Tax Slabs Under New Regime Updated
The Budget 2024 has revised the tax slabs in the New Regime, providing taxpayers with an extra opportunity to save Rs. 17,500 in taxes. Additionally, the standard deduction has been raised to Rs. 75,000 under this regime and the family pension deduction has been increased to Rs. 25,000 from Rs. 15,000. This is applicable for the FY 2024-25. The comparison between the tax slabs post-budget and pre-budget is as follows:
|
Tax Slab for FY 2023-24 |
Tax Rate |
Tax Slab for FY 2024-25 |
Tax Rate |
|
Upto ₹ 3 lakh |
Nil |
Upto ₹ 3 lakh |
Nil |
|
₹ 3 lakh – ₹ 6 lakh |
5% |
₹ 3 lakh – ₹ 7 lakh |
5% |
|
₹ 6 lakh – ₹ 9 lakh |
10% |
₹ 7 lakh – ₹ 10 lakh |
10% |
|
₹ 9 lakh – ₹ 12 lakh |
15% |
₹ 10 lakh – ₹ 12 lakh |
15% |
|
₹ 12 lakh – ₹ 15 lakh |
20% |
₹ 12 lakh – ₹ 15 lakh |
20% |
|
More than 15 lakh |
30% |
More than 15 lakh |
30% |
What is an Income Tax Slab?
In India, the Income Tax applies to individuals based on a slab system, where different tax rates are assigned to different income ranges. As the person’s income increases, the tax rates also increase. This type of taxation allows for a fair and progressive tax system in the country. The income tax slabs are revised periodically, typically during each budget. These slab rates vary for different groups of taxpayers.
Let us take a look at all the slab rates applicable for FY 2023-24(AY 2024-25).
For Old Regime, a tax rebate up to Rs.12,500 is applicable if the total income does not exceed Rs 5,00,000 (not applicable for NRIs)
NOTE:
- Income tax exemption limit is
- up to Rs 2,50,000 for Individuals, HUF below 60 years aged and NRIs.
- up to Rs 3,00,000 for senior citizens aged above 60 years but less than 80 years.
- up to Rs 5,00,000 for super senior citizens aged above 80 years.
- Surcharge and cess will be applicable over and above the tax rates
However, under the new tax regime rebate is up to Rs.25,000 is applicable if the total income does not exceed Rs 7,00,000. (not applicable for NRIs)
* Tax rebate equivalent to an amount, tax payable is when the total income exceeds Rs 7,00,000. (not applicable for NRIs)
NOTE:
- Income tax exemption limit is up to Rs 3,00,000 for Individuals, HUF opting for the new regime.
- Surcharge and cess will be applicable over and above the tax rates.
Comparison of Tax Rates Under New Tax Regime & Old Tax Regime
|
|
Old Tax Regime (FY 2022-23 and FY 2023-24) |
New Tax Regime |
|||
|
Income Slabs |
Age < 60 years & NRIs |
Age of 60 Years to 80 years |
Age above 80 Years |
FY 2022-23 |
FY 2023-24 |
|
Up to ₹2,50,000 |
NIL |
NIL |
NIL |
NIL |
NIL |
|
₹2,50,001 – ₹3,00,000 |
5% |
NIL |
NIL |
5% |
NIL |
|
₹3,00,001 – ₹5,00,000 |
5% |
5% |
NIL |
5% |
5% |
|
₹5,00,001 – ₹6,00,000 |
20% |
20% |
20% |
10% |
5% |
|
₹6,00,001 – ₹7,50,000 |
20% |
20% |
20% |
10% |
10% |
|
₹7,50,001 – ₹9,00,000 |
20% |
20% |
20% |
15% |
10% |
|
₹9,00,001 – ₹10,00,000 |
20% |
20% |
20% |
15% |
15% |
|
₹10,00,001 – ₹12,00,000 |
30% |
30% |
30% |
20% |
15% |
|
₹12,00,001 – ₹12,50,000 |
30% |
30% |
30% |
20% |
20% |
|
₹12,50,001 – ₹15,00,000 |
30% |
30% |
30% |
25% |
20% |
|
₹15,00,000 and above |
30% |
30% |
30% |
30% |
30% |
Income Tax Slab Rates For FY 2022-23 (AY 2023-24)
a. New Tax regime until 31st March 2023
|
Income Slabs |
Individuals (for all age categories) |
|
Up to Rs 2,50,000 |
Nil |
|
Rs 2,50,001 – Rs 5,00,000* |
5% |
|
Rs 5,00,001 – Rs 7,50,000 |
10% |
|
Rs 7,50,001 – Rs 10,00,000 |
15% |
|
Rs 10,00,001 – Rs 12,50,000 |
20% |
|
Rs 12,50,001 – Rs 15,00,000 |
25% |
|
Rs 15,00,001 and above |
30% |
* Tax rebate up to Rs.12,500 is applicable if the total income does not exceed Rs 5,00,000 (not applicable for NRIs)
Refer to the above image for the rates applicable to FY 2023-24 (AY 2024-25) for the upcoming tax filing season.
b. Old Tax regime
Income tax slabs for individuals aged below 60 years & HUF
|
Income Slabs |
Individuals of Age < 60 Years and NRIs |
|
Up to Rs 2,50,000 |
NIL |
|
Rs 2,50,001 – Rs 5,00,000 |
5% |
|
Rs 5,00,001 to Rs 10,00,000 |
20% |
|
Rs 10,00,001 and above |
30% |
NOTE:
- The income tax exemption limit is up to Rs 2,50,000 for Individuals, HUF below 60 years aged, and NRIs.
- Surcharge and cess will be applicable.
Income tax slab for individuals aged above 60 years to 80 years
|
Income Slabs |
Individuals of Age 60 Years to 80 Years |
|
Up to Rs 3,00,000 |
NIL |
|
Rs 3,00,001 – Rs 5,00,000 |
5% |
|
Rs 5,00,001 to Rs 10,00,000 |
20% |
|
Rs 10,00,001 and above |
30% |
NOTE:
- The income tax exemption limit is up to Rs.3 lakh for senior citizens aged above 60 years but less than 80 years.
- Surcharge and cess will be applicable
Income tax slab for Individuals aged more than 80 years
|
Income Slabs |
Individuals of Age above 80 Years |
|
Up to Rs 5,00,000 |
NIL |
|
Rs 5,00,001 to Rs 10,00,000 |
20% |
|
Rs 10,00,001 and above |
30% |
NOTE:
- Income tax exemption limit is up to Rs 5 lakh for super senior citizen aged above 80 years.
- Surcharge and cess will be applicable
Revised Income Tax Slab Rate AY 2024-25 (FY 2023-24)– For New Regime
|
Income Slabs |
Income Tax Rates |
|
Up to Rs 3,00,000 |
Nil |
|
Rs 3,00,000 to Rs 6,00,000 |
5% on income which exceeds Rs 3,00,000 |
|
Rs 6,00,000 to Rs 900,000 |
Rs. 15,000 + 10% on income more than Rs 6,00,000 |
|
Rs 9,00,000 to Rs 12,00,000 |
Rs. 45,000 + 15% on income more than Rs 9,00,000 |
|
Rs 12,00,000 to Rs 1500,000 |
Rs. 90,000 + 20% on income more than Rs 12,00,000 |
|
Above Rs 15,00,000 |
Rs. 150,000 + 30% on income more than Rs 15,00,000 |
What are the Major Procedural Changes in Filing of Income Tax Return from FY 2022-23 to FY 2023-24?
- For FY 2022-23, the default regime used to be the Old tax regime, if you wanted to go for the New tax regime, you were required to submit Form 10-IE. After the due date, you have to mandatorily file under the old regime only.
- For FY 2023-24, the default regime changed to the new tax regime, now if you want to file the return under the old tax regime by claiming all the deductions, exemptions, and losses, then you have to file Form 10-IEA within the due date. After the due date, you have to mandatorily file under the new regime by giving up on most of the deductions and exemptions and all losses.
How to Calculate Income Tax from Income Tax Slabs?
Illustration 1: Rohit has a total taxable income of Rs 8,00,000. This income has been calculated by including income from all sources, such as salary, rental income, and interest income. Deductions under Section 80 have also been reduced. Rohit wants to know his tax dues as per the old regime for FY 2023-24 (AY 2024-2025).
|
Income Tax Slabs |
Tax Rate |
Tax Amount |
|---|---|---|
|
*Income up to Rs 2,50,000 |
No tax |
– |
|
Income from Rs 2,50,000 – Rs 5,00,000 |
5% (Rs 5,00,000 – Rs 2,50,000) |
Rs 12,500 |
|
Income from Rs 5,00,000 – 10,00,000 |
20% (Rs 8,00,000 – Rs 5,00,000) |
Rs 60,000 |
|
Income more than Rs 10,00,000 |
30% |
– |
|
Tax |
|
Rs 72,500 |
|
Cess |
4% of Rs 72,500 |
Rs 2,900 |
|
Total tax in FY 2023-24 (AY 2024-25) |
Rs 75,400 |
|
Note:
Please note that Rohit is an individual taxpayer assessee having an income tax exemption of Rs 2,50,000. For other taxpayer assessees, i.e. senior citizens and super senior citizens, the Income-tax limit for availing the exemption would be Rs 3,00,000 & Rs 5,00,000, respectively.
Individuals with net taxable income less than or equal to Rs 5 lakh will be eligible for tax rebate u/s 87A under the old tax regime, i.e. tax liability will be NIL.
Important Points to note if you select the new tax regime:
- Please note that the tax rates in the New tax regime are the same for all categories of Individuals, i.e. Individuals, Senior citizens, and Super senior citizens.
- Individuals with net taxable income less than or equal to Rs 7 lakh will be eligible for tax rebate u/s 87A, i.e. tax liability will be NIL under the new regime.
What is a Surcharge and the Applicable Rates?
In case the income exceeds a certain threshold, the additional taxes are to be paid over and above existing tax rates. This is an additional tax on the High Income Earners.
Surcharge rates are as below:
10% of Income tax if total income > Rs.50 lakh and < Rs.1 crore,
15% of Income tax if total income > Rs.1 crore and < Rs.2 crore,
25% of Income tax if total income > Rs.2 crore and < Rs.5 crore,
37% of Income tax if total income > Rs.5 crore
*In Budget 2023, the highest surcharge rate of 37% has been reduced to 25% under the new tax regime. (applicable from 1st April 2023)
- Surcharge rates of 25% or 37% will not apply to the income from dividends and capital gains taxable under sections 111A (Short Term Capital Gain on Shares), 112A (Long Term Capital Gain on Shares), and 115AD (Tax on the income of Foreign Institutional Investors). Therefore, the highest surcharge rate on the tax payable for such incomes will be 15%.
- The surcharge rate for an Association of Persons (AOP) consisting entirely of companies will also be limited to 15%.
Additional Health and Education cess at the rate of 4% will be added to the income tax liability.