RATES OF TAXES
(Clause
2 & 3)
a. For Individuals and HUF (Old regime)
|
Existing (FY:2025-26, AY:2026-27) & Proposed (FY:2026-27, TY:2026-27) No change proposed |
||
|
Total Income (In Rs.) |
Income
Tax Rates |
|
|
Upto 2,50,000 |
Nil |
|
|
2,50,001 to 5,00,000 |
5% + H&EC |
|
|
5,00,001 to 10,00,000/- |
20% + H&EC |
|
|
Above 10,00,000/- |
30% + H&EC |
|
|
50,00,001 to 1 Crore |
30% + SC*@10% + H&EC |
|
|
>1 Crore to 2 Crores |
30% + SC*@ 15% + H&EC |
|
|
>2 Crores to 5 Crores |
30% + SC*@ 25% + H&EC |
|
|
>5 Crores |
30% + SC*@ 37% + H&EC |
|
|
* Surcharge @ 10% if Net Taxable Income above 50
Lakhs and below 1 Crore |
||
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* Surcharge @ 15% if Net Taxable Income above 1
Crore and below 2 Crores |
||
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* Surcharge @ 25% if Net Taxable Income above 2
Crores and below 5 Crores |
||
|
* Surcharge @ 37% if Net Taxable Income above 5
Crores |
||
|
Health & Education Cess
@ 4 % on IT + SC |
||
For Individuals and HUF (New Regime u/s 202) No change proposed
|
Existing (FY:2025-26, AY:2026-27) |
Proposed
(FY:2026-27, TY:2026-27) |
||
|
Total Income (In Rs.) |
Income Tax Rates |
Total Income (In Rs.) |
Income Tax Rates |
|
Upto
4,00,000 |
Nil |
Upto 4,00,000 |
Nil |
|
4,00,001 to 8,00,000 |
5% + H&EC |
4,00,001 to 8,00,000 |
5%
+ H&EC |
|
8,00,001 to 12,00,000/- |
10% + H&EC |
8,00,001 to 12,00,000/- |
10%
+ H&EC |
|
12,00,001 to 16,00,000/- |
15% + H&EC |
12,00,001 to 16,00,000/- |
15%
+ H&EC |
|
16,00,001 to 20,00,000/- |
20% + H&EC |
16,00,001 to 20,00,000/- |
20%
+ H&EC |
|
20,00,001 to 24,00,000/- |
25% + H&EC |
20,00,001 to 24,00,000/- |
25%
+ H&EC |
|
Above 24,00,001/- |
30% + H&EC |
Above 24,00,001/- |
30%
+ H&EC |
|
50,00,001
to 1 Crores |
30% + SC*@10% + H&EC |
50,00,001 to 1 Crores |
30%
+ SC*@10% + H&EC |
|
>1 Crore to 2 Crores |
30% + SC*@ 15% + H&EC |
>1 Crore to 2 Crores |
30%
+ SC*@ 15% + H&EC |
|
>2 Crores |
30% + SC*@ 25% + H&EC |
>2 Crores |
30%
+ SC*@ 25% + H&EC |
|
* Surcharge @ 10% if Net Taxable Income above 50
Lakhs and below 1 Crore |
|||
|
* Surcharge @ 15% if Net Taxable Income above 1
Crore and below 2 Crores |
|||
|
* Surcharge @ 25% if Net Taxable Income above 2
Crores |
|||
|
Health & Education Cess
@ 4 % on IT + SC |
|||
Note:
In a case where the total income includes any income
by way of dividend or income chargeable u/s. 196, u/s.197 and u/s. 198 of the ITA
2025, the rate of surcharge on the amount of income-tax computed on that part
of the total income shall not exceed 15%. Hence, the maximum rate of surcharge
on tax payable on such incomes shall be 15%, except when the income is taxable
under Section 207, 208, 115AC (old Section as there is no corresponding Section),
193 and 214.
With
effect from A.Y. 2024-25, the slab rates as per Section 115BAC of ITA, 1961
will be the default slab rates and the assesses shall have an option to opt for
the old tax regime.
The
assesses will have to choose from Option 1 and Option 2 for the assessment year
subject to fulfillment of certain conditions.
b. Senior Citizens: (Who is of the age of 60 years or more but
less than 80 years)
The basic threshold limit is the
same as last Assessment Year.
Further,
in case of Individuals including Senior Citizens having Total Income up to Rs.
12 Lakhs, Rebate shall be available u/s 87A w.e.f. F.Y. 2025-26, AY 2026-27 to
the extent of tax payable or Rs.60,000/-, whichever is lesser.
c. Very Senior Citizens: (Who is of the age of 80 years or
more at any time during the previous year)
The basic threshold limit is same as last AY.
d. For AOP (not being co-operative society) / BOI / Artificial
Judicial Person
Old regime
|
Existing (FY:2025-26, AY:2026-27) & Proposed (FY:2026-27, TY:2026-27) No change proposed |
|
|
Total Income (In Rs.) |
Income Tax Rates |
|
Upto 2,50,000 |
Nil |
|
2,50,001 to 5,00,000 |
5% + H&EC |
|
5,00,001 to 10,00,000/- |
20% + H&EC |
|
10,00,001 to 50,00,000/- |
30% + H&EC |
|
50,00,001 to 1 Crore |
30% + SC*@10% + H&EC |
|
>1 Crore to 2 Crores |
30% + SC*@ 15% + H&EC |
|
>2 Crore to 5 Crores |
30% + SC*@ 25% + H&EC |
|
>5 Crores |
30% + SC*@ 37% + H&EC |
|
* Surcharge @ 10% if Net Taxable Income above 50
Lakhs and below 1 Crore |
|
|
* Surcharge @ 15% if Net Taxable Income above 1
Crore and below 2 Crores |
|
|
* Surcharge @ 25% if Net Taxable Income above 2
Crores and below 5 Crores |
|
|
* Surcharge @ 37% if Net Taxable Income above 5
Crores |
|
|
Health & Education Cess
@ 4 % on IT + SC |
|
e. For AOP (not being co-operative society) / BOI / Artificial Judicial
Person
New regime u/s 202 No
change proposed
|
Existing (FY:2025-26, AY:2026-27) |
Proposed (FY:2026-27, TY:2026-27) |
||
|
Total Income (In Rs.) |
Income Tax Rates |
Total Income (In Rs.) |
Income Tax Rates |
|
Upto
4,00,000 |
Nil |
Upto
4,00,000 |
Nil |
|
4,00,001 to 8,00,000 |
5% + H&EC |
4,00,001 to 8,00,000 |
5% +
H&EC |
|
8,00,001 to 12,00,000/- |
10% + H&EC |
8,00,001 to 12,00,000/- |
10% +
H&EC |
|
12,00,001 to 16,00,000/- |
15% + H&EC |
12,00,001 to 16,00,000/- |
15% +
H&EC |
|
16,00,001
to 20,00,000/- |
20% + H&EC |
16,00,001
to 20,00,000/- |
20% +
H&EC |
|
20,00,001 to 24,00,000/- |
25% + H& EC |
20,00,001 to 24,00,000/- |
25% +
H& EC |
|
Above 24,00,001/- |
30% + H& EC |
Above 24,00,001/- |
30% +
H& EC |
|
50,00,000 to 1 Crores |
30% + SC*@ 10% + H&EC |
50,00,000 to 1 Crore |
30% + SC*@
10% + H&EC |
|
>1 Crore to 2 Crores |
30% + SC*@ 15% + H&EC |
>1 Crore to 2 Crores |
30% + SC*@
15% + H&EC |
|
>2 Crores |
30% + SC*@ 25% + H&EC |
>2 Crores |
30% + SC*@
25% + H&EC |
|
* Surcharge
@ 10% if Net Taxable Income above 50 Lakhs and below 1 Crore |
|||
|
* Surcharge
@ 15% if Net Taxable Income above 1 Crore and below 2 Crores |
|||
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* Surcharge @ 25% if Net Taxable Income above 2 Crores |
|||
|
Health & Education Cess @ 4 % on IT + SC |
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f. For Firms & Limited Liability Partnership (LLP):
|
Existing (FY:2025-26, AY:2026-27) & Proposed
(FY:2026-27,TY:2026-27) - No change proposed |
|
|
Total Income (In Rs.) |
Income Tax Rates |
|
Upto 1 Crore |
30% + EC |
|
Above 1 Crore |
30% + SC@12% + EC |
|
Health & Education Cess
@ 4 % on IT + SC |
|
g. For Domestic Companies
|
Existing (FY:2025-26, AY:2026-27) & Proposed
(FY:2026-27,TY:2026-27) - No change proposed |
|
|
Condition |
Income Tax Rates |
|
Total turnover or gross receipts during FY 2023-24
does not exceed Rs. 400 crores |
25% + SC* + EC |
|
If opted for Section 115BA |
25% + SC* + EC |
|
If opted for Section 115BAA |
22% + SC@10% + EC |
|
If opted for Section 115BAB |
15% + SC@10% + EC |
|
Any other domestic company |
30% + SC* + EC |
|
*Surcharge @ 7% if Net Taxable Income above 1 crore
but below 10 crores *Surcharge @ 12% if Net Taxable Income above 10
crores Health & Education Cess
@ 4 % on IT + SC |
|
h. For Companies Other Than Domestic Companies
|
|
Existing (FY:2025-26,AY:2026-27) |
Proposed (FY:2026-27,TY: 2026-27) |
|
Total Income (In Rs.) |
Income Tax Rates |
Income Tax Rates |
|
Upto 1 Crore |
35% + H&EC |
35% + H&EC |
|
Above 1 Crore |
35% + SC@2% + H&EC |
35% + SC@2% + H&EC |
|
Above 10 Crores |
35% + SC@5% + H&EC |
35% + SC@5% + H&EC |
|
Health & Education Cess
@ 4 % on IT + SC |
||
i. Minimum Alternate Tax on Companies Other than Domestic
Companies
|
j. For Local Authorities:
|
Existing (FY:2025-26, AY:2026–27) & Proposed
(FY 2026-27, TY: 2026–27) |
|
|
Total Income (In Rs.) |
Income Tax Rates |
|
Up to 1 Crore |
30% + H&EC |
|
Above 1 Crore |
30% + SC + H&EC |
|
Surcharge @
12% if Net Taxable Income above 1 Crore |
|
|
Health & Education Cess @ 4 % on IT + SC |
|
k. For Cooperative Societies
|
Particulars |
Co-operative Societies opting for Section
203 |
Co-operative Societies opting for Section
204 |
Other Co-operative Societies |
|
|
Business of co-operative society |
any business |
manufacture/production including electric generation |
any
business |
|
|
Eligibility criteria |
no
specific requirement |
set up &
registered on or after 1st April, 2023, and has commenced manufacturing on
production of an article or thing on or before the 31st day of March, 2024 |
no specific requirement |
|
|
Tax rate |
22% |
15% |
10%/20%/30% (Note
No. 1) |
|
|
surcharge |
10% |
10% |
0%/7%/12% (Note No. 2) |
|
|
cess |
4% |
4% |
4% |
|
|
effective tax rate |
25.17% |
17.16% |
10.4% to 34.9% |
|
|
MAT |
NA |
NA |
NA |
|
NOTE 1: |
|
Note 2: |
|
|
Basis Rate of Income |
Applicable Tax Rate |
Surcharge rate Total Income |
Applicable Surcharge |
|
Upto 10,000 |
10% |
Upto 1 Crore |
0% |
|
Above 10,000 to 20,000 |
20% |
Above 1
Crore to 10 Crores |
7% |
|
Exceeding 20,000 |
30% |
More Than
10 Crores |
12% |
There is no change in taxation of agricultural
income as per ITA, 2025 compared to ITA, 1961. Under both, the net
agricultural income shall be taken into account, only for the purpose of
charging income tax in respect of total income.