Tax Rates

The rates of income-tax¹ and corporate taxes are available in the Finance Act passed by the Parliament every year. You can also check your tax liability and calculate the amount of income tax you have to pay by using the free online tax calculator available at the Income Tax Department website.

The Finance Act 2023 has given individual taxpayers the option to choose between:

• The new tax regime under Section 202 is the default regime for all individuals, HUFs, AOPs and BOIs, featuring simplified and lower slab rates with limited deductions and exemptions. 
• Taxpayers may opt for the old regime if they wish to claim the full range of deductions and exemptions available under the Act.

Given below are the income tax rates  for individuals:

Old Tax Regime slabs for Tax Year 2026-27

New Tax Regime slabs under Section 202 (( Note: The New Tax Regime under Section 202, effective from AY 2021-22, applies uniform tax slabs to all individual taxpayers regardless of age. Unlike the Old Regime, it does not provide separate exemption limits or slabs for senior or super senior citizens. This simplification offers lower tax rates but eliminates most deductions and exemptions available under the Old Regime. ))

Read more on income tax rates for a partnership firm, Hindu Undivided Family,  etc.

1. Income Tax Department, Government of India, “Income Tax Slab Rates,” available at https://www.incometax.gov.in/iec/foportal/help/individual/return-applicable-1 [↩]