Disclaimer: The content on this page is only to give an overview and general guidance and is not exhaustive. For complete details and guidelines please refer Income Tax Act, Rules and Notifications.
This return is applicable for a Resident (other than Not Ordinarily Resident) Individual having Total Income from any of the following sources up to ₹ 50 lakh
Salary / Pension
One House Property
Other sources (Interest, Family Pension, Dividend etc.)
Agricultural Income up to ₹ 5,000
Note: ITR-1 cannot be used by a person who: (a) is a Director in a company (b) has held any unlisted equity shares at any time during the previous year (c) has any asset (including financial interest in any entity) located outside India (d) has signing authority in any account located outside India (e) has income from any source outside India (f) is a person in whose case tax has been deducted u/s 194N (g) is a person in whose case payment or deduction of tax has been deferred on ESOP (h) has any brought forward loss or loss to be carried forward under any head of income
(i) has total income exceeding Rs. 50 lakhs.
This return is applicable for Individual and Hindu Undivided Family (HUF)
Not having Income under the head Profits and Gains of Business or Profession
Who is not eligible for filing ITR-1
Having Income under the head Profits and Gains of Business or Profession
Who is not eligible for filing ITR-1, ITR-2 or ITR-4
This return is applicable for an Individual or Hindu Undivided Family (HUF), who is Resident other than Not Ordinarily Resident or a Firm (other than LLP) which is a Resident having Total Income up to ₹ 50 lakh and having income from Business or Profession which is computed on a presumptive basis (u/s 44AD / 44ADA / 44AE) and income from any of the following sources:
Note 1:
ITR-4 not applicable to a person who: (a) is a Director in a company (b) has held any unlisted equity shares at any time during the previous year (c) has any asset (including financial interest in any entity) located outside India (d) has signing authority in any account located outside India (e) has income from any source outside India (f) is a person in whose case payment or deduction of tax has been deferred on ESOP (g) who has any brought forward loss or loss to be carried forward under any head of income.
Note:2 ITR-4 (Sugam) is not mandatory. It is a simplified return form to be used by an Assessee, at his option, if he is eligible to declare Profits and Gains from Business or Profession on presumptive basis u/s 44AD, 44ADA or 44AE.
Provided by
Details provided in the form
An Employee to his Employer(s)
Evidence or particulars of HRA, LTC, Deduction of Interest on home loan, Tax Saving Claims / Deductions on eligible payments or investments for the purpose of calculating Tax to be Deducted at Source (TDS)
An Employer(s) to his Employee at the end of the financial year
Income of employee, Deductions / Exemptions and Tax Deducted at Source for the purpose of Computing Tax Payable / Refundable
Deductor to Deductee
Form 16A is a Tax Deducted at Source (TDS) Certificate issued quarterly that captures the amount of TDS, Nature of Payments and the TDS Payments deposited with the Income Tax Department
Submitted by
Taxpayer on or before the due date specified for furnishing the ITRs u/s 139(1)
Income from a country or specified territory outside India and Foreign Tax Credit claimed
Form 26 AS
AIS (Annual information Statement)
Provided by:
Income Tax Department (It is available on e-Filing Portal:
Login > e-File > Income Tax Return > View Form 26AS)
Details provided in the form:
Tax Deducted / Collected at Source.
Income Tax Department (It can be accessed after logging on to Income Tax e-Filing portal)
Go to e-filing portal > login > AIS
Other information (like Pending/Completed proceedings, GST Information, Information received from foreign government etc)
Note: Information regarding (Advance Tax/SAT, Details of refund, SFT Transaction, TDS u/s 194 IA,194 IB,194M, TDS defaults) which were available in 26AS are now available in AIS
A Resident Individual less than 60 years or HUF or any other Person (other than Company / Firm) to Bank for not deducting TDS on Interest Income, if the income is below basic exemption limit
Estimated Income for the FY
A Resident Individual, 60 years or more to Bank for not deducting TDS on Interest Income
An Employee to the Income Tax Department
Old Tax Regime
New Tax Regime u/s 115BAC
Income Tax Slab
Income Tax Rate
*Surcharge
Up to ₹ 2,50,000
Nil
Up to ₹ 3,00,000
₹ 2,50,001 - ₹ 5,00,000**
5% above ₹ 2,50,000
₹ 3,00,001 - ₹ 7,00,000**
5% above ₹ 3,00,000
₹ 5,00,001 - ₹ 10,00,000
₹ 12,500 + 20% above ₹ 5,00,000
₹ 7,00,001 - ₹ 10,00,000
₹ 20,000 + 10% above ₹ 7,00,000
₹ 10,00,001- ₹ 50,00,000
₹ 1,12,500 + 30% above ₹ 10,00,000
₹ 10,00,001 - ₹ 12,00,000
₹ 50,000 + 15% above ₹ 10,00,000
₹ 50,00,001- ₹ 100,00,000
10%
₹ 12,00,001 - ₹ 15,00,000
₹ 80,000 + 20% above ₹ 12,00,000
₹ 100,00,001- ₹ 200,00,000
15%
₹ 15,00,001- ₹ 50,00,000
₹ 1,40,000 + 30% above ₹ 15,00,000
₹ 200,00,001- ₹ 500,00,000
25%
Above ₹ 500,00,000
37%
Above ₹ ₹ 200,00,001
₹ 3,00,001 - ₹ 5,00,000**
₹ 10,000 + 20% above ₹ 5,00,000
Up to ₹ 5,00,000
20% above ₹ 5,00,000
Above ₹ 15,00,000
*Note: The enhanced surcharge of 25% & 37%, as the case may be, is not levied, from income chargeable to tax under sections 111A, 112, 112A and Dividend Income. Hence, the maximum rate of surcharge on tax payable on such incomes shall be 15%, except when the income is taxable under section 115A, 115AB, 115AC, 115ACA and 115E.
**Rebate u/s 87A: Resident Individuals are also eligible for a Rebate of up to 100% of income tax subject to a maximum limit depending on tax regimes as under:
Total Income
New Tax Regime
Rebate under Section 87A Applicable
Up to Rs. 5 Lakh
Tax rebate up to Rs.12,500 is applicable for resident individuals if the total income does not exceed Rs 5,00,000 (not applicable for NRIs
Tax rebate up to Rs.25,000 is applicable for resident individuals if the total income does not exceed Rs 7,00,000 (not applicable for NRIs
From 5 Lakhs to 7 Lakhs
NIL
***Note : Health & Education cess @ 4% to be paid on the amount of income tax plus Surcharge (if any) in both the regimes.
Marginal relief can be claimed from surcharge if the amount of income earned exceeding ₹ 50 lakhs, ₹ 1 crore, ₹ 2 crore or ₹ 5 crores respectively as under:
Net Income Range
Marginal Relief
Exceeds (Rs.)
Does not exceed (Rs.)
50 Lakh
1 Crore
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
2 Crore
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
5 Crore
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
–
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.
Nature of Property
Purpose of loan
Allowable (Maximum limit)
Let Out
Construction or purchase of house property
Actual value without any limit
Deduction towards contribution made by an employer to the Pension Scheme of Central Government
For all categories of employers
Deduction limit of 14% of salary
Deduction in respect of contribution to Agnipath Scheme
Where an assessee, being an individual enrolled in the Agnipath Scheme and subscribing to the Agniveer Corpus Fund on or after the 1st day of November, 2022, has in the previous year paid or deposited any amount in his account in the said fund
Allowed a deduction in the computation of total income, of the whole of the amount so paid or deposited
Where the Central Government makes any contribution to the account of an assessee in the Agniveer Corpus Fund
Allowed a deduction in the computation of total income of the whole of the amount so contributed
Tax deductions in the Old Tax Regime
When loan was taken
Self-Occupied
On or after 1/04/1999
₹ 2,00,000
For Repairs of house property
₹ 30,000
Before 1/04/1999
Any time
Tax deductions specified under Chapter VIA of the Income Tax Act
Deduction towards payments made to
80C
Combined deduction limit of ₹ 1,50,000
80CCC
Annuity plan of LIC or other insurer towards Pension Scheme
80CCD(1)
Pension Scheme of Central Government
Deduction towards payments made to Pension Scheme of Central Government, excluding deduction claimed under 80CCD (1)
Deduction limit of ₹ 50,000
If the Employer is a PSU or Others
Deduction limit of 10% of salary
If the Employer is Central or State Government
Section 80CCH
Deduction towards payments made to Health Insurance Premium & Preventive Health check up
For Self / Spouse or Dependent Children
₹ 25,000 (₹ 50,000 if any person is a Senior Citizen)
₹ 5,000 for preventive health check up, included in above limit
For Parents
₹ 25,000 (₹50,000 if any person is a Senior Citizen)
Deduction towards Medical Expenditure incurred on a Senior Citizen, if no premium is paid on health insurance coverage
For Self/ Spouse or Dependent Children
Deduction towards payments made towards maintenance or medical treatment of a Disabled Dependent or Paid / Deposited any amount under relevant approved scheme
Flat deduction of ₹ 75,000 available for a person with Disability, irrespective of expense incurred.
The deduction is ₹ 1,25,000 if the person has Severe Disability (80% or more).=
Please note: If Taxpayer is claiming deduction u/s 80DD then its recommended to file form 10-IA also before filing of return.
Form 10IA can be filed later also however it is recommended to file form 10-IA along with return of income to avoid any inconvenience later.
Deduction towards payments made towards Medical treatment of Self or Dependant for specified diseases
Deduction limit of ₹ 40,000 (₹ 1,00,000 if Senior Citizen)
Deduction towards interest payments made on loan for higher education of Self or relative
Total amount paid towards interest on loan taken
Deduction towards interest payments made on loan taken for acquisition of residential house property where the loan is sanctioned between 1st April 2016 to 31st March 2017
Deduction limit of ₹ 50,000 on the interest paid on loan taken
Deduction available only to individuals towards interest payments made on loan taken for acquisition of residential house property for the first time where the loan is sanctioned between 1st April 2019 to 31st March 2022 & deduction should not have been claimed u/s 80EE
Deduction limit of ₹ 1,50,000 on the interest paid on loan taken
Deduction towards interest payments made on loan for purchase of Electric Vehicle where the loan is sanctioned between 1st April 2019 to 31st March 2023
Deduction towards Donations made to prescribed Funds, Charitable Institutions, etc.
Donation are eligible for deduction under the below categories
Without any limit
100% deduction
50% deduction
Subject to qualifying limit
Note: No deduction shall be allowed under this section in respect of donation made in cash exceeding ₹ 2000/-
Deduction towards rent paid for house & applicable to only those who are self-employed or for whom HRA is not part of Salary
Least of the following shall be allowed as deduction
Rent paid reduced by 10% of Total Income before this deduction
₹ 5,000 per month
25% of Total Income (excluding long term capital gains, short term capital gains under section 111A or income under section 115A or 115D)
Note: Form 10BA to be filled for claiming this deduction.
Deduction towards Donations made for Scientific Research or Rural Development
Donation are eligible for deduction under the below categories:
Research Association or University, College or other Institution for
Association or Institution for
PSU or Local Authority or an association or institution approved by the National Committee for carrying out any eligible project
Funds notified by Central Government for
National Urban Poverty Eradication Fund as setup and notified by Central Government
Note: No deduction shall be allowed under this Section in respect of donation made in cash exceeding ₹ 2000/- or if Gross Total Income includes income from Profit / Gains of Business / Profession
Deduction towards Donations made to Political Party or Electoral Trust
Deduction on interest received on saving bank accounts by Non-Senior Citizens
Deduction limit of ₹ 10,000/-
Deduction on interest received on deposits by Resident Senior Citizens
Deduction limit of ₹ 50,000/-
Deductions for a resident individual taxpayer with Disability
Flat ₹ 75,000 deduction for a person with Disability, irrespective of expense incurred
Flat ₹ 1,25,000 deduction for a person with Severe Disability (80% or more), irrespective of expense incurred
Please note: If Taxpayer is claiming deduction u/s 80U then it is recommended to file form 10-IA also before filing of return.
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
Add:
a. Surcharge : Surcharge is levied on the amount of income-tax at following rates if total income of an assessee exceeds specified limits:-
Note:
(1) The enhanced surcharge of 25% & 37%, as the case may be, is not levied, on dividend income or income chargeable to tax under sections 111A, 112, 112A and 115AD(1)(b). Hence, the maximum rate of surcharge on tax payable on such incomes shall be 15%.
(2) The surcharge rate for AOP with all members as a company, shall be capped at 15%.
(3) The surcharge rate is nil if the total income of a ‘specified fund’ as referred to in section 10(4D) includes any income in respect of securities as given under section 115AD(1)(a) (For Assessment Year 2024-25).
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. 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. 1 crore by more than the amount of income that exceeds Rs. 1 crore.
iii. in case where net income exceeds Rs. 2 crores but doesn`t exceed Rs. 5 crores, 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 crores by more than the amount of income that exceeds Rs. 2 crores.
iv. in case where net income exceeds Rs. 5 crores, 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 crores by more than the amount of income that exceeds Rs. 5 crores.
b. Health and Education Cess : Health and Education Cess is levied at the rate of 4% on the amount of income-tax plus surcharge.
Notes:
(1) The Health and Education Cess is nil if the total income of a `specified fund` as referred to section 10(4D) includes any income in respect of securities as given under section 115AD(1)(a) (For Assessment Year 2024-25).
(2) 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.
(3) If the total income of resident individual, who is opting for the new tax scheme under section 115BAC(1A), is up to Rs. 7,00,000, a higher rebate of Rs. 25,000 is allowed under section 87A.Such higher rebate is also subject to marginal relief (For Assessment Year 2024-25).
Alternate Minimum Tax (AMT)
An individual is liable to pay Alternate Minimum Tax where tax payable by him, on his total income computed as per normal provisions of the Act, is less than 18.5% of `adjusted total income`. In such a case the `adjusted total income` is taken as income of such individual and he shall be liable to pay tax at the rate of 18.5% of such `adjusted total income`.
However, AMT is levied at the rate of 9% (plus surcharge and cess as applicable) in case of an assessee other than a company, being a unit of an International Financial Services Centre and deriving its income solely in convertible foreign exchange.
1.1. Special tax Rate for Individual and HUFs
New tax regime (also known as alternative tax regime) is optional for the Assessment Year 2023-24. An individual or HUF has to exercise the option under Section 115BAC(5) to avail its benefit.
However, for the Assessment Year 2024-25, the new tax regime is the default tax regime for the Individual or HUF. Further, the benefit of new tax regime has also extended to Association of Persons (AOP)/Body of Individuals (BOI) and Artificial Juridical Person (AJP) w.e.f. Assessment Year 2024-25. If one to opt-out from default new tax regime, he has to exercise the option under Section 115BAC(6).
The tax rates under the new tax regime are as under:
(a) For Assessment Year 2023-24:
(b) For Assessment Year 2024-25:
Note: The enhanced surcharge of 25% or 37% is not levied, on income by way of dividend or from income chargeable to tax under sections 111A, 112, 112A and 115AD(1)(b). Hence, the maximum rate of surcharge on tax payable on such incomes shall be 15%. Also, the surcharge rate for AOP with all members as a company, shall be capped at 15%.
However, enhanced surcharge rate of 37% is not applicable for assessees opting for tax regime under section 115BAC (from Assessment Year 2024-25).
Further, the surcharge rate is nil if the total income of a specified fund as referred to in section 10(4D) includes any income in respect of securities as given under section 115AD(1)(a) (For Assessment Year 2024-25).
However, marginal relief is available from surcharge in following manner-
iii. in case where net income exceeds Rs. 2 crores, 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 crores by more than the amount of income that exceeds Rs. 2 crores.
b. Health and Education Cess : Health and Education Cess is levied at the rate of 4% on the amount of income-tax plus surcharge. However, The Health and Education Cess is nil if the total income of a `specified fund` as referred to section 10(4D) includes any income in respect of securities as given under section 115AD(1)(a) (For Assessment Year 2024-25).
(a) For Assessment Year 2023-24, 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 percent of income-tax or Rs.12,500, whichever is less.
(b) From Assessment Year 2024-25, a maximum rebate of Rs. 25,000 is allowed under section 87A, if the total income of a resident individual, who is opting for the new tax scheme under Section 115BAC(1A), is up to Rs. 7,00,000.
(c) Further, if the total income of the resident individual opting section 115BAC(1A) exceeds Rs. 7,00,000 and the tax payable on such income exceeds the difference between the total income and Rs. 7,00,000, he can claim a rebate with marginal relief to the extent of the difference between the tax payable on such total income and the amount of income by which it exceeds Rs. 7,00,000
(d) If an assessee has opted for new tax regime, the provisions of AMT shall not be applicable.
2. Partnership Firm
For the Assessment Years 2023-24 & 2024-25, a partnership firm (including LLP) is taxable at 30%.
(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
A partnership firm is liable to pay Alternative Minimum Tax where tax payable by it, on total income computed as per normal provisions of the Act, is less than 18.5% of `adjusted total income`. In such a case the `adjusted total income` is taken as the income of the firm and it shall be liable to pay tax at the rate of 18.5% of such `adjusted total income`.
3. Local Authority
For the Assessment Years 2023-24 & 2024-25, a local authority is taxable at 30%.
(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.
A Local Authority is liable to pay Alternative Minimum Tax where tax payable by it, on total income computed as per normal provisions of the Act, is less than 18.5% of `adjusted total income`. In such a case the `adjusted total income` is taken as the income of the firm and it shall be liable to pay tax at the rate of 18.5% of such `adjusted total income`.
However, AMT 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.
4. Domestic Company
Income-tax rates applicable in case of domestic companies for assessment years 2023-24 and 2024-25 are as follows:
(a) 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. 1 crore by more than the amount of income that exceeds Rs. 1 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
Minimum Alternate Tax (MAT)
A domestic company is liable to pay Minimum Alternate Tax where tax payable by it, on total income computed as per normal provisions of the Act, is less than 15% of `book profit`. In such a case the `book profit` is taken as the income of the company and it shall be liable to pay tax at the rate of 15% of such `book profit`.
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.
4.1. Special Tax rates applicable to a domestic company
The special Income-tax rates applicable in case of domestic companies are as follows:
Surcharge : The rate of surcharge in case of a company opting for taxability under Section 115BAA 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 surcharge.
MAT : The domestic company who has opted for special taxation regime under Section 115BAA & 115BAB is exempted from provision of MAT. However, no exemption is available in case where section 115BA has been opted.
5. Foreign Company
Assessment Years 2023-24 and 2024-25
(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.
(ii) 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.
A foreign company is liable to pay Minimum Alternate Tax where tax payable by it, on total income computed as per normal provisions of the Act, is less than 15% of `book profit`. In such a case the `book profit` is taken as the income of the company and it shall be liable to pay tax at the rate of 15% of such `book profit`.
However, the provisions of MAT do not apply in case of foreign companies if it does not have permanent establishment (PE) in India or opts for presumptive taxation scheme of Section 44B, Section 44BB, Section 44BBA or Section 44BBB.
6. Co-operative Society
(a) (a) 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. However, the surcharge shall be subject to marginal relief, which shall be as under:
(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.
(a) A co-op. society is liable to pay Alternate Minimum Tax where tax payable by it, on total income computed as per normal provisions of the Act, is less than 15% of `adjusted total income`. In such a case the `adjusted total income` is taken as the income of co-op. society and it shall be liable to pay tax at the rate of 15% of such `adjusted total income`.
(b) If the assessee is a unit located in an International Financial Services Centre and derives its income solely in convertible foreign exchange, the rate of AMT will be 9%.
6.1. Alternative Tax regime for Co-operative societies
Income-tax Act allows a co-operative society to choose from the following alternative taxation regime subject to fulfilment of prescribed conditions:
Section 115BAE
• The co-operative society is set up and registered on or after 01-04-2023;
• It is engaged in manufacture or production of any article or thing;
• It commences manufacturing on or before 31-03-2024 ; and
• It does not claim specified exemption, incentive or deduction.
(a) Surcharge: The surcharge is levied at a rate of 10% on the amount of income-tax irrespective of the total income of such co-operative society.
(b) Health & 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 4% of such income-tax and surcharge.
(a) If a co-operative society has exercised the option of Section 115BAD or Section 115BAE, the provisions of AMT shall not be applicable. Further, the provisions regarding computation and carry forward of AMT credit shall also be not applicable.
[As amended by Finance Act, 2023]
1. For resident Senior Citizens. (Age above 60 Years)
2. For resident Super Senior Citizens. (Age above 80 Years)
3. Individuals, [other than those mentioned above, HUF, AOP/BOI (other than co-operative societies).
Note: Rebate u/s 87A, in which resident individuals are allowed rebate (if their taxable income does not exceed Rs. 5 lakh) equal to 100% of income tax or Rs. 12,500 whichever less.
Health and Education Cess: 4% on the amount of Tax plus surcharge
Health and Education Cess: 4% on the amount of Tax plus surcharge.
Companies
Surcharge : 12% of the Income Tax, where total taxable income is more than Rs. 1 crore.
Income tax : Flat rate of 22%
Surcharge : 10% of the Income Tax
Income tax : 30%.
Surcharge : 12% of the Income Tax, where total taxable income is more than Rs. 1 crore
The tax calculated on the basis of such rates will be subject to health and education cess of 4%.
Any individual opting to be taxed under the new tax regime from FY 2020-21 onwards will have to give up certain exemptions and deductions.
Here is the list of exemptions and deductions that a taxpayer will have to give up while choosing the new tax regime.
Leave Travel Allowance (LTA)
House Rent Allowance (HRA)
Conveyance
Daily expenses in the course of employment
Relocation allowance
Helper allowance
Children education allowance
Other special allowances [Section 10(14)]
Standard deduction
Professional tax
Interest on housing loan (Section 24)
Chapter VI-A deduction (80C,80D, 80E and so on) (Except Section 80CCD(2) and 80JJA)
Points to remember while opting for the new tax regime:
Option to be exercised on or before the due date of filing return of income for AY 2021-22
In case a taxpayer has a business income and exercised the option, he/she can withdraw from the option only once. A business taxpayer withdrawing from the optional tax regime has to follow the regular income tax slabs.
According to the current income tax laws in India, the income tax rate on resident individuals varies based on their age. There are different tax slabs applicable to the individuals for the financial year 2018-19 and 2019-20. For instance, a resident individual, aged below 60 years, with an income less than Rs 2.5 lacs is exempt from paying income tax.
No tax for individuals with income less than ? 2,50,000
0%-5% tax with income ? 2.5 lacs to 5 lacs for different age groups
20% tax with income ? 5 lacs to 10 lacs
30% tax with income above ? 10 lacs
A tax rebate under section 87A is allowed to individual taxpayers a maximum amount of:
– Rs 2,500 for total income up to Rs 3.5 lakh for FY 2018-19
– Rs 12,500 for total income up to Rs 5 lakh for FY 2019-20
Investments upto ? 1.5 lacs under Sec 80C can save ? 46,800 in taxes.
Note : An additional 4% Health & education cess will be applicable on the tax amount calculated as above.
Let’s understand the tax calculation for rebate with the help of an example:
Let’s understand the tax calculation for a rebate with the help of an example:
In addition cess and surcharge is levied as follows:
Cess: 4% of corporate tax
Surcharge applicable:
However, the rate of surcharge in case of a company opting for taxability under Section 115BAA or Section 115BAB shall be 10% irrespective of amount of total income.
Note: An additional 4% Health & education cess will be applicable on the tax amount calculated as above.
Surcharge applicable to the individuals covered in Part I, II and III:
In addition cess and surcharge is levied as follows: Cess: 4% of corporate tax