Given below are the rates at which income is taxed in India for income earned in different slabs, and through various heads of income.
The tax rates and tax slabs have been arranged depending on the profile and category of the taxpayer / tax paying entity.
-
For Individual TaxPayers (Resident Indian or NRI):
| Level of Income | Rate of Tax |
| Up to Rs.2,50,000 | No tax |
| Rs.2,50,000 to Rs.5,00,000 | 10% |
| Rs.5,00,000 to Rs.10,00,000 | 20% |
| Over Rs.10,00,000 | 30% |
Plus:
- Surcharge: If income is greater than Rs.1,00,00,000 – 12% of income tax amount. Subject to marginal relief.
- Education Cess: 2% extra – charged on the amount of income tax + surcharge being paid.
- Secondary and Higher Education Cess: 1% extra – charged on the amount of income tax + surcharge being paid.
Less:
- Rebate under Section 87A: For individuals with total income less than Rs.5,00,000 – a total rebate amount of Rs.2,000 or 100% of the income tax (whichever is lesser).
2. For Hindu Undivided Families (HUF):
| Level of Income | Rate of Tax |
| Up to Rs.2,50,000 | No tax |
| Rs.2,50,000 to Rs.5,00,000 | 10% |
| Rs.5,00,000 to Rs.10,00,000 | 20% |
| Over Rs.10,00,000 | 30% |
Plus:
- Surcharge: If income is greater than Rs.1,00,00,000 – 12% of income tax amount. Subject to marginal relief.
- Education Cess: 2% extra – charged on the amount of income tax + surcharge being paid.
- Secondary and Higher Education Cess: 1% extra – charged on the amount of income tax + surcharge being paid.
Less:
- Rebate under Section 87A: For HUFs with total income less than Rs.5,00,000 – a total rebate amount of Rs.2,000 or 100% of the income tax (whichever is lesser).
3. For legal Entities Registered as Associations of Persons:
| Level of Income | Rate of Tax |
| Up to Rs.2,50,000 | No tax |
| Rs.2,50,000 to Rs.5,00,000 | 10% |
| Rs.5,00,000 to Rs.10,00,000 | 20% |
| Over Rs.10,00,000 | 30% |
Plus:
- Surcharge: If income is greater than Rs.1,00,00,000 – 12% of income tax amount. Subject to marginal relief.
- Education Cess: 2% extra – charged on the amount of income tax + surcharge being paid.
- Secondary and Higher Education Cess: 1% extra – charged on the amount of income tax + surcharge being paid.
Less:
- Rebate under Section 87A: For Associations of Persons with total income less than Rs.5,00,000 – a total rebate amount of Rs.2,000 or 100% of the income tax (whichever is lesser).
4. For Legal Entities Registered as Bodies of Individuals:
| Level of Income | Rate of Tax |
| Up to Rs.2,50,000 | No tax |
| Rs.2,50,000 to Rs.5,00,000 | 10% |
| Rs.5,00,000 to Rs.10,00,000 | 20% |
| Over Rs.10,00,000 | 30% |
Plus:
- Surcharge: If income is greater than Rs.1,00,00,000 – 12% of income tax amount. Subject to marginal relief.
- Education Cess: 2% extra – charged on the amount of income tax + surcharge being paid.
- Secondary and Higher Education Cess: 1% extra – charged on the amount of income tax + surcharge being paid.
Less:
- Rebate under Section 87A: For Bodies of Individuals with total income less than Rs.5,00,000 – a total rebate amount of Rs.2,000 or 100% of the income tax (whichever is lesser).
5. For Other Artificial Judicial Persons:
| Level of Income | Rate of Tax |
| Up to Rs.2,50,000 | No tax |
| Rs.2,50,000 to Rs.5,00,000 | 10% |
| Rs.5,00,000 to Rs.10,00,000 | 20% |
| Over Rs.10,00,000 | 30% |
Plus:
- Surcharge: If income is greater than Rs.1,00,00,000 – 12% of income tax amount. Subject to marginal relief.
- Education Cess: 2% extra – charged on the amount of income tax + surcharge being paid.
- Secondary and Higher Education Cess: 1% extra – charged on the amount of income tax + surcharge being paid.
Less:
- Rebate under Section 87A: For Judicial entities with total income less than Rs.5,00,000 – a total rebate amount of Rs.2,000 or 100% of the income tax (whichever is lesser).
6. For Resident Senior Citizens (Over the Age of 60, and Under the Age of 80 on the last day of the Previous Year):
| Level of Income | Rate of Tax |
| Up to Rs.3,00,000 | No tax |
| Rs.3,00,000 to Rs.5,00,000 | 10% |
| Rs.5,00,000 to Rs.10,00,000 | 20% |
| Over Rs.10,00,000 | 30% |
Plus:
- Surcharge: If income is greater than Rs.1,00,00,000 – 12% of income tax amount. Subject to marginal relief.
- Education Cess: 2% extra – charged on the amount of income tax + surcharge being paid.
- Secondary and Higher Education Cess: 1% extra – charged on the amount of income tax + surcharge being paid.
Less:
- Rebate under Section 87A: For Resident Indian Senior Citizen taxpayers with total income less than Rs.5,00,000 – a total rebate amount of Rs.2,000 or 100% of the income tax (whichever is lesser).
7. For Resident Super Senior Citizens (who are over the age of 80 as on the last day of the Previous Year):
| Level of Income | Rate of Tax |
| Up to Rs.5,00,000 | No tax |
| Rs.5,00,000 to Rs.10,00,000 | 20% |
| Over Rs.10,00,000 | 30% |
Plus:
- Surcharge: If income is greater than Rs.1,00,00,000 – 12% of income tax amount. Subject to marginal relief.
- Education Cess: 2% extra – charged on the amount of income tax + surcharge being paid.
- Secondary and Higher Education Cess: 1% extra – charged on the amount of income tax + surcharge being paid.
8. For Partnership Firms:
Partnership Firms and LLPs (Limited Liability Partnerships) are to be taxed at the rate of 30%.
Plus:
- Surcharge: If income is greater than Rs.1,00,00,000 – 12% of income tax amount. Subject to marginal relief.
- Education Cess: 2% extra – charged on the amount of income tax + surcharge being paid.
- Secondary and Higher Education Cess: 1% extra – charged on the amount of income tax + surcharge being paid.
9. For Local Authorities:
Local Authorities are to be taxed at the rate of 30%.
Plus:
- Surcharge: If income is greater than Rs.1,00,00,000 – 12% of income tax amount. Subject to marginal relief.
- Education Cess: 2% extra – charged on the amount of income tax + surcharge being paid.
- Secondary and Higher Education Cess: 1% extra – charged on the amount of income tax + surcharge being paid.
10. For Domestic Companies:
Domestic Companies are to be taxed at the rate of 30%.
Plus:
- Surcharge: If income is greater than Rs.1,00,00,000 – 7% of the income tax amount. If income is greater than Rs.10,00,00,000 – 12% of the income tax amount. Subject to marginal relief.
- Education Cess: 2% extra – charged on the amount of income tax + surcharge being paid.
- Secondary and Higher Education Cess: 1% extra – charged on the amount of income tax + surcharge being paid.
11. For Foreign Companies:
| Nature of Income | Rate of Tax |
| If the income received by the Foreign Company is in the form of royalties paid by the Indian Government in relation to agreements made with an Indian concern (after March 31st, 1961, and before April 1st, 1976) | 50% |
| If the income received is in the form of fees for technical services rendered for agreements made with Indian concerns (after February 29th, 1964, and before April 1st, 1976) | 50% |
| Any other income | 40% |
Plus:
- Surcharge: If income is greater than Rs.1,00,00,000 – 2% of the income tax amount. If income is greater than Rs.10,00,00,000 – 5% of the income tax amount. Subject to marginal relief.
- Education Cess: 2% extra – charged on the amount of income tax + surcharge being paid.
- Secondary and Higher Education Cess: 1% extra – charged on the amount of income tax + surcharge being paid.
12. For Co-operative Societies:
| Level of Income | Rate of Tax |
| Up to Rs.10,000 | 10% |
| Rs.10,000 to Rs.20,000 | 20% |
| Over Rs.20,000 | 30% |
Plus:
- Surcharge: If income is greater than Rs.1,00,00,000 – 12% of income tax amount. Subject to marginal relief.
- Education Cess: 2% extra – charged on the amount of income tax + surcharge being paid.
- Secondary and Higher Education Cess: 1% extra – charged on the amount of income tax + surcharge being paid.