New Income Tax Rates For Fiscal Year 2024–25

The new budget for Fiscal Year (FY) 2024–25 brings a revision to income tax rates for both salaried and non-salaried individuals and AOPs.

The changes mean that people with higher incomes will pay more in tax this fiscal year, putting a lot of pressure on the masses amid sky-high inflation.

However, the new income tax rates insure that people with higher incomes pay significantly more by putting less pressure on the lower tax brackets.

Income Tax Rates for Salaried Individuals

Taxable Income (Rs)	Existing Rates	Incremental Effect
Up to 600,000	Rs. 0	No change
Exceeding 600,000 up to 1,200,000	2.5% of the amount exceeding 600,000	Increase from 2.5% to 5%
Exceeding 1,200,000 up to 2,200,000	12.5% of the amount exceeding 1,200,000	Increase from 12.5% to 15%
Exceeding 2,200,000 up to 2,400,000	12.5% of the amount exceeding 2,200,000	Increase from 12.5% to 25%
Exceeding 2,400,000 up to 3,200,000	22.5% of the amount exceeding 2,400,000	Increase from 22.5% to 25%
Exceeding 3,200,000 up to 3,600,000	22.5% of the amount exceeding 3,200,000	Increase from 22.5% to 30%
Exceeding 3,600,000 up to 4,100,000	27.5% of the amount exceeding 3,600,000	Increase from 27.5% to 30%
Exceeding 4,100,000 up to 6,000,000	27.5% of the amount exceeding 4,100,000	Increase from 27.5% to 35%
Exceeding 6,000,000	35% of the amount exceeding 6,000,000	No change

Income Tax Rates for Non-Salaried Individuals and AOPs

Meanwhile, the income tax rates for non-salaried individuals and Associations of Persons (AOPs) has seen a similar revision as outlined in the table below.

Taxable Income (Rs)	Existing Rates	Incremental Effect
Up to 600,000	Rs. 0	No change
Exceeding 600,000 up to 800,000	7.5% of the amount exceeding 600,000	Increase from 7.5% to 15%
Exceeding 800,000 up to 1,200,000	15% of the amount exceeding 800,000	No change
Exceeding 1,200,000 up to 1,600,000	20% of the amount exceeding 1,200,000	No change
Exceeding 1,600,000 up to 2,400,000	20% of the amount exceeding 1,600,000	Increase from 20% to 30%
Exceeding 2,400,000 up to 3,000,000	25% of the amount exceeding 2,400,000	Increase from 25% to 30%
Exceeding 3,000,000 up to 3,200,000	30% of the amount exceeding 3,000,000	No change
Exceeding 3,200,000 up to 4,000,000	30% of the amount exceeding 3,200,000	Increase from 30% to 40%
Exceeding 4,000,000 up to 5,600,000	35% of the amount exceeding 4,000,000	Increase from 35% to 40%
Exceeding 5,600,000	35% of the amount exceeding 5,600,000	Increase from 35% to 45%