sao122, 7-15 PM Income Tax Department Income Tax Department Government of India Tax Rates 1. 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 Indi uals (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% 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% 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. $,00,000 5% 5% Rs, 5,00,000 to Rs. 10,00,000 20% 20% Above Rs. 10,00,000 30% 30% soutblanksao122, 7-15 PM Income Tax Department Add: a, Surcharge : Surcharge is levied on the amount of income-tax at following rates if total income of an assessee exceeds specified limi Rate of Surcharge Assessment Year 2023-24 Assessment Year 2022-23 Range of Income Range of Income Rs. 50] Rs.t | Rs.2 | Rs. 5 [Exceeding] Rs. 50 | Rs. 1 | Rs.2 | Rs.5 | Exceeding Lakhs to| Crore to| Crores | crores to| Rs. 10 | Lakhs to| Crore to| Crores | crores to| Rs. 10 Rs.1 | Rs.2 | toRs.5| Rs. 10 | Crores | Rs.1 | Rs.2 | Rs. 5] Rs. 10 | Crores Crore | Crores | Crores | Crores Crore | Crores | Crores | Crores 10% | 15% | 25% | 37% 37% | 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 1IJA, 112A and LISAD. Hence, the maximum rate of surcharge on tax payable on such incomes shall be 15%. (2) From Assessment Year 2023-24 onwards: © The maximum rate of surcharge on tax payable on dividend income or capital gain referred to in Section 112, shall be 15%. © The surcharge rate for AOP with all members as a company, shall be capped at 15%, However, marginal relief is available from surcharge in following manner- i, in case where net income exceeds Rs. 50 lakh but doesn't exceed Rs. 1 Crore, the amount payable as income tax and surcharge shall not exceed the total amount payable as income tax on total income of Rs $0 Lakh by more than the amount of income that exceeds Rs 50 Lakhs ii, in case where net income exceeds Rs. 1 crore but doesn't exceed Rs. 2 crore, marginal relief shall be available from surcharge in such a manner that the amount payable as income tax and surcharge shall not exceed the total amount payable as income-tax on total income of Rs. | crore by more than the amount of income that exceeds Rs. 1 crore. iii. in case where net income exceeds Rs. 2 crore but doesn't exceed Rs. 5 crore, marginal relief shall be available from surcharge in such a manner that the 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. iv. in case where net income exceeds Rs. 5 crore, marginal relief shall be available from surcharge in such a manner that the 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, b, Health and Education Cess : Health and Education Cess is levied at the rate of 4% on the amount of income-tax plus surcharge. Note: 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. 1.1, 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% soutblank 216sao122, 7:15 PM Income Tax Department 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: a, Surcharge : Surcharge is levied on the amount of income-tax at following rates if total income of an assessee exceeds specified limits: Range of Income Rs, 50 Lakhs to Rs. | Rs. 1 Crore to Rs. 2| Rs. 2 Crores to Rs. | Rs. 5 crores to Rs, | Exceeding Rs, 10 1 Crore Crores 5 Crores 10 Crores Crores 10% 15% 25% 37% 37% Note: The enhanced surcharge of 25% & 37%, as the case may be, is not levied, from income chargeable to tax under sections L11A, 112, 112A and 115AD. Hence, the maximum rate of surcharge on tax payable on such incomes shall be 15%. However, marginal relief is available from surcharge in following manner- i, in case where net income exceeds Rs. 50 lakh but doesn't exceed Rs. 1 Crore, the 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. ii, in case where net income exceeds Rs. | crore but doesn't exceed Rs. 2 crore, marginal relief shall be available from surcharge in such a manner that the 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. iii, in case where net income exceeds Rs. 2 crore but doesn't exceed Rs. 5 crore, marginal relief shall be available from surcharge in such a manner that the 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. iv. in case where net income exceeds Rs. 5 crore, marginal relief shall be available from surcharge in such a manner that the 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. b. Health and Education Cess : Health and Education Cess is levied at the rate of 4% on the amount of income-tax plus surcharge, Note 1: 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. Note 2: The option to pay tax at lower rates shall be available only if the total income of assessee is computed without claiming specified exemptions or deductions 2. Partnership Firm For the Assessment Year 2023-24, a partnership firm (including LLP) is taxable at 30%. Add: (@) Surcharge : The amount of income-tax shall be increased by a surcharge at the rate of 12% of such tax, where total income exceeds one crore rupees. However, the surcharge shall be subject to marginal relief (where income execeds one crore rupees, the total amount payable as income-tax and surcharge shall not exceed total amount payable as income-tax on total income of one crore rupees by more than the amount of income that exceeds one crore rupees). (b) Health and Education Cess : The amount of income-tax and the applicable surcharge, shall be further increased by health and education cess calculated at the rate of four percent of such income- tax and surcharge 3. Local Authority soutblank 318‘ana, 745 PM Income Tax Depariment For the Assessment Year 2022-23 & 2023-24, a local authority is taxable at 30%, Ada: (a) Surcharge : The amount of income-tax shall be increased by a surcharge at the rate of 12% of such tax, where total income exceeds one crore rupees. However, the surcharge shall be subject to marginal relief (where income exceeds one crore rupees, the total amount payable as income-tax and surcharge shall not exceed total amount payable as income-tax on total income of one crore rupees by more than the amount of income that exceeds one crore rupees). (b) Health and Education Cess : The amount of income-tax and the applicable surcharge, shall be further increased by health and education cess calculated at the rate of four percent of such income- tax and surcharge. 4. Domestic Company Income-tax rates applicable in case of domestic companies for assessment year 2022-23 and 2023-24 are as follows: Domestic Company Assessment | Assessment Year 2022-23 | Year 2023-24 ¢ Where its total tumover or gross receipt during the previous year 25% NA 2019-20 does not exceed Rs. 400 crore ¢ Where its total tu mover or gross receipt during the previous year NA 235% 2020-21 does not exceed Rs. 400 crore ¢ Any other domestic company 30% 30% Add: (@) Surcharge : The amount of income-tax shall be increased by a surcharge at the rate of 7% of such tax, where total income exceeds one crore rupees but not exceeding ten crore rupees and at the rate of 12% of such tax, where total income exceeds ten crore rupees. The surcharge shall be subject to ‘marginal relief, which shall be as under (i) Where income exceeds Rs. 1 crore but not exceeding Rs. 10 crore, the total amount payable as income-tax and surcharge shall not exceed total amount payable as income-tax on total income of Rs. | crore by more than the amount of income that exceeds Rs. | crore. (ii) Where income exceeds Rs. 10 crore, the total amount payable as income-tax and surcharge shall not exceed total amount payable as income-tax on total income of Rs. 10 crore by more than the amount of income that exceeds Rs. 10 crore (b) Health and Education Cess : The amount of income-tax and the applicable surcharge, shall be further increased by health and education cess calculated at the rate of four percent of such income- tax and surcharge. 4.1, Special Tax rates applicable to a domestic company The special Income-tax rates applicable in case of domestic companies for assessment year 2022-23 and 2023-24 are as follows: Domestic Company Assessment Year 2022-23 | Assessment Year 2023-24 Where it opted for section 115BA 25% 25% ¢ Where it opted for Section 11SBAA 22% 22% ¢ Where it opted for Section 115BAB 15% 15% Surcharge : The rate of surcharge in case of a company opting for taxability under Section 11SBAA or Section 115BAB shall be flat 10% irrespective of amount of total income. Health and Education Cess: The amount of income-tax and the applicable surcharge, shall be further increased by health and education cess calculated at the rate of four percent of such income-tax and abouttlank 45‘ana, 745 PM Income Tax Depariment surcharge. MAT : The domestic company who has opted for special taxation regime under Section ISBAA & 1ISBAB is exempted from provision of MAT. However, no exemption is available in case where section IISBA has been opted In that case, the provisions of Minimum Alternate Tax (MAT) applies, tax payable cannot be less than 15% (+HEC) of "Book profit” computed as per section 115JB. However, MAT is levied at the rate of 9% (plus surcharge and cess as applicable) in case of a company, being a unit of an International Financial Services Centre and deriving its income solely in convertible foreign exchange. For provisions relating to MAT refer tutorial on "MAT/AMT" in tutorial section. 5. Foreign Company Assessment Year 2022-23 and Assessment Year 2023-24 Nature of Income Tax Rate Royalty received fiom Government or an Indian concem in pursuance of an agreement made with | 50% the Indian concem afler March 31, 1961, but before April 1, 1976, or fees for rendering technical services in pursuance of an agreement made after February 29, 1964 but before April 1, 1976 and where such agreement has, in either case, been approved by the Central Government Any other income 40% Add: (a) Surcharge: The amount of income-tax shall be increased by a surcharge at the rate of 2% of such tax, where total income exceeds one crore rupees but not exceeding ten crore rupees and at the rate of 5% of such tax, where total income exceeds ten crore rupees, However, the surcharge shall be subject to marginal relief, which shall be as under: (i) Where income exceeds one crore rupees but not exceeding ten crore rupees, the total amount payable as income-tax and surcharge shall not exceed total amount payable as income-tax on total income of one crore rupees by more than the amount of income that exceeds one crore rupees. (i Where income exceeds ten crore rupees, the total amount payable as income-tax and surcharge shall not exceed total amount payable as income-tax on total income of ten crore rupees by more than the amount of income that exceeds ten crore rupees. (b) Health and Education Cess : The amount of income-tax and the applicable surcharge, shall be further increased by health and education cess calculated at the rate of four percent of such income- tax and surcharge. 6. Co-operative Society Assessment Year 2022-23 and Assessment Year 2023-24 Taxable income ‘Tax Rate Up to Rs. 10,000 10% Rs. 10,000 to Rs. 20,000 20% Above Rs. 20,000 30% Add: (a) Surcharge: The amount of income-tax shall be increased by a surcharge at the rate of 12% of such tax, where total income exceeds one crore rupees. However, the surcharge shall be subject to marginal relief (where income exceeds one crore rupees, the total amount payable as income-tax and surcharge shall not exceed total amount payable as income-tax on total income of one crore rupees by more than the amount of income that exceeds one crore rupees). Note: From Assessment Year 2023-24 onwards, the rate of surcharge in the case of co-operative societies having income between 1 crore to 10 crores is reduced from 12% to 7%. (b) Health and Education Cess: The amount of income-tax and the applicable surcharge, shall be further increased by health and education cess calculated at the rate of four percent of such income-tax and surcharge. soutblank 56sao122, 7-15 PM Income Tax Department 6.1, Special tax rates applicable to a Co-operative societies Taxable income Tax Rate Any income 22% Note: The Finance Act, 2020 has inserted a new Section 11SBAD in Income-tax Act to provide an option to the co-operative societies to get taxed at the rate of 22% plus 10% surcharge and 4% cess. The resident co- operative societies have an option to opt for taxation under newly Section 11SBAD of the Act wef. Assessment Year 2021-22. The option once exercised under this section cannot be subsequently withdrawn for the same or any other previous year. If the new regime of Section 115BAD is opted by a co-operative society, its income shall be computed without providing for specified exemption, deduction or incentive available under the Act. The societies opting for this section have been kept out of the purview of Alternate Minimum Tax (AMT). Further, the provision relating to computation, carry forward and set-off of AMT credit shall not apply to thes assesses ‘The option to pay tax at lower rates shall be available only if the total income of co-operative society is computed without claiming specified exemptions or deductions [As amended by Finance Act, 2022] soutblank 36