Tax rates under default tax regime: –
The slab rates for Assessment Year 2024-25 under default tax regime under section 115BAC of Income-tax Act, 1961
Note:- The basic exemption limit is ₹ 3,00,000 under the default tax regime.
| Sr. No. | Total income [in ₹] | Rate of tax |
|---|---|---|
| 1 | Up to ₹ 3,00,000 | Nil |
| 2 | From ₹ 3,00,001 to ₹ 6,00,000 | 5% |
| 3 | From ₹ 6,00,001 to ₹ 9,00,000 | 10% |
| 4 | From ₹ 9,00,001 to ₹ 12,00,000 | 15% |
| 5 | From ₹ 12,00,001 to ₹ 15,00,000 | 20% |
| 6 | Above ₹ 15,00,000 | 30% |
Surcharge is an additional tax levied on income-tax.
The rates of surcharge for the Assessment Year 2024-25 for individual who pays tax under default tax regime under section 115BAC are as follows: –
Rates of Surcharge: –
| Sr. No. | Particulars | Surcharge |
|---|---|---|
| 1. | Total income >₹ 50 lakhs but ≤ ₹ 1 crore | 10% |
| 2. | Total income >₹ 1 crore but ≤ ₹ 2 crore | 15% |
| 3. | Total income >₹ 2 crore [including dividend income & capital gains taxable u/s 111A, 112 and 112A]. | 15% |
| 4. | Total income >₹ 2 crore [excluding dividend income & capital gains taxable u/s 111A, 112 and 112A]. | 25% |
Note:- Marginal relief would be available.
Rebate
Rebate under section 87A under default tax regime u/s 115BAC
An individual resident in India whose total income ≤ ₹ 7 lakhs, assessee shall be entitled to a deduction from the amount of income tax.
Least of the following would be rebate –
- Amount of income-tax
- OR
- ₹ 25,000
If the total income of such individual >₹ 7 lakhs and income tax payable on such total income exceeds the amount by which total income is in excess of ₹ 7 lakhs, assessee shall be entitled to a deduction from the amount of income tax.
steps to calculate deduction :-
- Compute income-tax payable on total income [A]
- Total income (–) ₹ 7 lakhs [B]
- if A>B, then, rebate would be A-B.
Tax rates under optional tax regime: –
The slab rates for Assessment Year 2024-25 under optional tax regime under regular provisions of Income-tax Act, 1961
| Sr. No. | Total income [in ₹] | Rate of tax |
|---|---|---|
| 1 | Up to ₹ 2,50,000 [if age is below 60 years] Up to ₹ 3,00,000 [ if age is 60 years or above but less than 80 years and resident in India] Up to ₹ 5,00,000 [ if age is 80 years or above and resident in India] | Nil |
| 2 | From ₹ 2,50,001 to ₹ 5,00,000 | 5% |
| 3 | From ₹ 5,00,001 to ₹ 10,00,000 | 20% |
| 4 | Above ₹ 10,00,000 | 30% |
| Sr. No. | Particulars | Surcharge |
|---|---|---|
| 1. | Total income >₹ 50 lakhs but ≤ ₹ 1 crore | 10% |
| 2. | Total income >₹ 1 crore but ≤ ₹ 2 crore | 15% |
| 3. | Total income >₹ 2 crore [including dividend income & capital gains taxable u/s 111A, 112 and 112A]. | 15% |
| 4. | Total income >₹ 2 crore but ≤ ₹ 5 crore | 25% |
| 5. | Total income >₹ 5 crore | 37% |
Rebate under section 87A under optional tax regime under normal provisions of the Act.
An individual resident in India whose total income ≤ ₹ 5 lakhs, assessee shall be entitled to a deduction from the amount of income tax.
Least of the following would be rebate –
- Amount of income-tax
- OR
- ₹ 12,500
Note:- Rebate under section 87A of the Income-tax Act, 1961 is not available from tax on long term capital gain u/s 112A.
Suggestion:- u/s represents under section.
Health and Education cess @4% on income-tax and surcharge, if applicable.