Income-tax rates AY 2024-25 — Finance Act, 2024 (No. 1 of 2024)

Independently re-read on 2 September 2026

A second pass went back to the department’s text at the sources listed at the foot of this page and read these figures again. That check is recorded in the record itself as verified_on: 2026-09-02.

What this year’s reading did not reach

This Act has no First Schedule record of its own on the API; its section 2 record (5121192) itself sets out the Part I substituted for the Finance Act, 2023, and that is what was read. The cess figure is not stated in this Act: this Act applies section 2 of the Finance Act, 2023 to the assessment year beginning 1 April 2024, the word 'cess' does not occur anywhere in this Act's section 2, and section 2(11) of the Finance Act, 2023 (read at https://www.incometaxindia.gov.in/w/section-2-132) imposes the Health and Education Cess at four per cent on the income-tax specified in its sub-sections (1) to (3). The three 'maximum amount which is not chargeable to income-tax' figures are likewise those of the Finance Act, 2023, which this Act applies unchanged. Local authority (Paragraph D): 30 per cent, surcharge twelve per cent above one crore rupees. Rebate under section 87A is not in the parts read. Note that the Finance (No. 2) Act, 2024 also charges income-tax for this same assessment year; only the No. 1 Act was in this batch.

New regime: No cap on surcharge specific to this regime could be established. The Finance Act, 2023 First Schedule was read twice: the only mention of section 115BAC in Paragraph A of Part I is in the lead-in sentence to the surcharge sub-paragraph, and no proviso limiting the surcharge to twenty-five per cent was found there. The department's own summary page "Tax Rates and Computation" does say "Surcharge and Health & Education Cess rates are the same as under the old regime, except surcharge capped at 25% for income exceeding Rs 5 crore", but that is a departmental summary and not the statutory text, and it names no assessment year, so no surcharge figure is recorded here.

Which Act set these rates

Act

Finance Act, 2024 (No. 1 of 2024)

Assessment year

2024-25

Income of the previous year

2023-24

What was read

the charging section only — the First Schedule was not reached

The Act itself

Finance Act, 2024 (No. 1 of 2024) in this library

Finance Act, 2024 (No. 1 of 2024) charged income-tax for the assessment year commencing 1 April 2024. What it charged was the income of the previous year 2023-24. The two are a year apart and the difference matters: a table headed by the wrong one is useless.

The slabs

Old

every individual other than the individual referred to in items (II) and (III) of Paragraph A, Hindu undivided family, association of persons, body of individuals whether incorporated or not, or every artificial juridical person referred to in sub-clause (vii) of clause (31) of section 2 of the Income-tax Act, not being a case to which any other Paragraph of Part I applies

Maximum amount not chargeable to income-tax: Rs 2,50,000

Total income	Rate of income-tax
Up to Rs 2,50,000	Nil
Rs 2,50,001 – Rs 5,00,000	5%
Rs 5,00,001 – Rs 10,00,000	20%
Rs 10,00,001 and above	30%

Section 2(1) of this Act: 'The provisions of section 2 of, and the First Schedule to, the Finance Act, 2023 (8 of 2023), shall apply in relation to income-tax for the assessment year or, as the case may be, the financial year commencing on the 1st day of April, 2024' with modifications, one of which substitutes a new Part I of the First Schedule. The slabs above are that substituted Part I, Paragraph A, as set out in this Act.

New (section 115BAC)

individual or Hindu undivided family taxed under section 115BAC of the Income-tax Act

Rate table: section 115BAC(1A), as put there by Finance Act, 2023. The department's text of section 115BAC carries the footnote "Ins. by the Act No. 8 of 2023, w.e.f. 1-4-2024" against sub-section (1A); the 2024 (No. 1) edition names it in words as inserted by the Finance Act, 2023. Sub-section (1A) applies to an individual, Hindu undivided family, association of persons (other than a co-operative society), body of individuals and artificial juridical person referred to in section 2(31)(vii), and unlike sub-section (1) it is the default rather than an option.

Maximum amount not chargeable to income-tax: Rs 3,00,000

Total income	Rate of income-tax
Up to Rs 3,00,000	Nil
Rs 3,00,001 – Rs 6,00,000	5%
Rs 6,00,001 – Rs 9,00,000	10%
Rs 9,00,001 – Rs 12,00,000	15%
Rs 12,00,001 – Rs 15,00,000	20%
Rs 15,00,001 and above	30%

Rebate under section 87A: total income up to Rs 7,00,000; rebate up to Rs 25,000 — First proviso to section 87A, inserted by Act No. 8 of 2023 with effect from 1-4-2024, for an assessee whose income is chargeable to tax under section 115BAC(1A). Clause (a): where total income does not exceed seven hundred thousand rupees, "an amount equal to one hundred per cent of such income-tax or an amount of twenty-five thousand rupees, whichever is less". Clause (b) gives marginal relief above that: where total income exceeds seven hundred thousand rupees and the income-tax payable exceeds the amount by which the total income exceeds seven hundred thousand rupees, the deduction is the excess of that tax over that excess of income. The second proviso caps the deduction at the income-tax payable at the section 115BAC(1A) rates. The general five hundred thousand rupees / twelve thousand five hundred rupees rebate in the main paragraph is unchanged and continues to serve the old regime.

The Part I substituted by this Act carries no concessional slab table; section 115BAC of the Income-tax Act does, and it was not among the parts read.

Senior citizens, very senior citizens, and women

Only where the Act for this year set a separate threshold or a separate table. Where it did not, this page says so.

Resident senior citizens

resident in India, sixty years or more but less than eighty years at any time during the previous year; Nil up to Rs. 3,00,000; 5 per cent of the amount exceeding Rs. 3,00,000 up to Rs. 5,00,000; Rs. 10,000 plus 20 per cent of the amount exceeding Rs. 5,00,000 up to Rs. 10,00,000; Rs. 1,10,000 plus 30 per cent of the amount exceeding Rs. 10,00,000

Maximum amount not chargeable to income-tax: Rs 3,00,000

Resident very senior citizens

resident in India, eighty years or more at any time during the previous year; Nil up to Rs. 5,00,000; 20 per cent of the amount exceeding Rs. 5,00,000 up to Rs. 10,00,000; Rs. 1,00,000 plus 30 per cent of the amount exceeding Rs. 10,00,000

Maximum amount not chargeable to income-tax: Rs 5,00,000

Resident women

This year’s record carries no separate table or threshold under this head.

Surcharge

Total income	Surcharge on the income-tax
Rs 50,00,000 – Rs 1,00,00,000	10%
Rs 1,00,00,000 – Rs 2,00,00,000	15%
Rs 2,00,00,000 – Rs 5,00,00,000	25%
Rs 5,00,00,000 and above	37%

Clauses (c) and (d) are computed on total income excluding income by way of dividend and income under sections 111A, 112 and 112A; clause (e) applies fifteen per cent where the total income including such income exceeds two crore rupees but is not covered by clauses (c) and (d). First proviso caps the surcharge on dividend and section 111A/112/112A income at fifteen per cent; second proviso caps the surcharge for an association of persons consisting of only companies as its members at fifteen per cent. There is NO proviso in this Part I capping the surcharge at twenty-five per cent for income chargeable under section 115BAC - asked for expressly and reported absent. The thirty-seven per cent clause was read character by character.

Cess

Cess	Rate
Health and Education Cess	4%

Marginal relief

Part I contains marginal-relief provisos: the total of income-tax and surcharge on a total income above a threshold shall not exceed the total of income-tax (and surcharge, where applicable) on a total income equal to that threshold by more than the amount of income that exceeds the threshold. Equivalent provisos appear at the one crore rupee threshold in Paragraphs B, C and D and at the one crore and ten crore rupee thresholds in Paragraph E.

Companies, firms, co-operative societies and local authorities

Reproduced in the Act’s own words, because these rates carry conditions a single percentage cannot.

Assessee	Rate as the Act states it
Domestic company	25 per cent of the total income where its total turnover or the gross receipt in the previous year 2021-22 does not exceed four hundred crore rupees; otherwise 30 per cent. Surcharge: seven per cent above one crore rupees but not exceeding ten crore rupees; twelve per cent above ten crore rupees.
Foreign company	50 per cent on royalties and fees for technical services received under the approved agreements described in Paragraph E; 40 per cent on the balance of the total income. Surcharge: two per cent above one crore rupees but not exceeding ten crore rupees; five per cent above ten crore rupees.
Firms and limited liability partnerships	30 per cent of the total income; surcharge twelve per cent of such income-tax where the total income exceeds one crore rupees
Co-operative societies	10 per cent of the total income where it does not exceed Rs. 10,000; Rs. 1,000 plus 20 per cent of the amount exceeding Rs. 10,000 where the total income exceeds Rs. 10,000 but not Rs. 20,000; Rs. 3,000 plus 30 per cent of the amount exceeding Rs. 20,000 where the total income exceeds Rs. 20,000. Surcharge: seven per cent where the total income exceeds one crore rupees but not ten crore rupees; twelve per cent where it exceeds ten crore rupees.
Local authorities	The Act’s text for this was not reached. No figure is recorded, and none has been supplied from another year.

What changed from the year before

Worked out by comparing this record with the one for the preceding assessment year in this collection. Where a figure is absent from either record, that is said rather than guessed.

Against assessment year 2023-24 (Finance Act, 2023): the new (section 115BAC) regime’s exemption limit moves from Rs 2,50,000 to Rs 3,00,000.
Against assessment year 2023-24 (Finance Act, 2023): the old regime’s exemption limit is unchanged at Rs 2,50,000.
The top slab rate is unchanged at 30%.
The surcharge is unchanged: 4 tiers, topping out at 37%.
The cess is unchanged: Health and Education Cess 4%.
The company rates are stated differently this year; read both years’ wording rather than taking a single number from either.
The firm rate stand in the same words as the year before.
The co-operative society rates stand in the same words as the year before.
Neither record reaches the local authority rate.
The separate threshold for resident senior citizens is unchanged at Rs 3,00,000.
The separate threshold for resident very senior citizens is unchanged at Rs 5,00,000.

Sources

The Income Tax Department’s own records for this Act. These are the documents the figures above were read out of.

The department’s index of Finance Acts is at https://www.incometaxindia.gov.in/finance-acts.

The years either side

← AY 2023-24 · AY 2025-26 →

What this page is, and what it is not

The figures are the Finance Act’s own. Every rate, threshold and exemption on this page was taken out of the Income Tax Department’s own text of the Act that charged the year — the charging section and the First Schedule — and the records we read are linked under Sources on each year’s page. The writing around the figures is ours: the arrangement, the headings, the comparison with the year before and every sentence of explanation. Those are not the Act.

These tables are for orientation. The Act governs. A rate table is a finding aid, not the law. The Act, its First Schedule and the provisos in it decide what is payable, and a table cannot carry the provisos. If you are about to rely on a figure here — in a return, in a computation, in a reply to a notice — open the source linked on the year’s page and read the figure in the Act for yourself. Where a record did not reach a rate, this library says so rather than filling the gap.

Income-tax rates for assessment year 2024-25