Rates Of Income Tax
Individuals & HUF’s
|
AY 2026-27 (Old Tax Regime)
Upto Rs. 250000 Nil 250001 to 500000 5% 500001 to 1000000 20% Above 1000000 30%
Surcharge : 10% of tax when income exceeds Rs. 50 Lakh 15% of tax when income exceeds Rs. 1 Crore 25% of tax when income exceeds Rs. 2 Crore 37% of tax when income exceeds Rs. 5 Crore
Health & Education Cess @ 4% (on tax + Surcharge)
For Resident Senior citizens :(60 Years or more but not more than 80 years) No Tax up to Rs. 300000/- ( above rates of Tax & Surcharge applicable thereafter )
For Resident Super Senior citizens :(80 years or more) No Tax up to Rs 500000/-(above rates of tax & Surcharge applicable thereafter)
Rebate of Rs.12500/- to individual having Total income up to Rs. 5 Lakhs. (Section 87A)
|
AY 2026-27 (Default Tax Regime)
Upto Rs. 400000 Nil 400001 to Rs 800000 5% 800001 to Rs1200000 10% 1200001 to Rs 1600000 15% 1600001 to Rs 2000000 20% 2000001 to Rs 2400000 25% Above Rs 2400000 30%
Surcharge : 10% of tax when income exceeds Rs. 50 Lakh 15% of tax when income exceeds Rs. 1 Crore 25% of tax when income exceeds Rs. 2 Crore
Health & Education Cess @4% ( on tax + Surcharge)
Rebate of Rs.60000/- to individual having Total income up to Rs.12 Lakhs. (Section 87A)
|
For availing the lower tax rate in the Default regime given above, the following conditions to be followed:
- Business Loss & Capital Loss can be carried forward but House property loess can’t be carried forward.
- No deduction like, HRA, LTC, Int on Housing Loan and other deduction u/s 80C
- If there is Business Income- If this scheme is opted it can be withdrawn only once and once withdrawn, this scheme cannot be opted again.
Firms / LLP
|
|
AY 2026-27 |
|
30+3.6+1.34 = 34.94%
30+1.2 = 31.20% |
Companies (Domestic)
|
|
AY 2026-27 |
|
|
30% |
|
Surcharge and Cess Applicable : Surcharge:
4% on Income Tax and Surcharge |
7% of tax
12% of tax
4% |
|
|
|
15+0.60 = 15.60%
15+1.05+0.642 = 16.692%
15+1.80+0.672 = 17.472% |
Alternative scheme of taxation for Domestic Company:
|
Section |
Tax Rate |
Surcharge |
Cess |
|
If opted for Sec - 115BA
|
25%
|
|
4% |
|
If opted for Sec - 115BAA
|
22% |
10% |
4%
|
|
If opted for Sec - 115BAB
|
15% |
10% |
4% |
Disclaimer
This article is for the person to whom it is sent only. No information contained in this article should be construed as legal advice. It is for information and reader of this article should not act without seeking the appropriate legal or other professional advice on the particular facts and circumstances.