For an individual earning an income of ₹1 crore in India for the financial year 2024-25, the income tax calculation under the new tax regime is as follows:
- Income up to ₹3,00,000: Nil tax
- ₹3,00,001 to ₹6,00,000: 5%
- ₹6,00,001 to ₹9,00,000: 10%
- ₹9,00,001 to ₹12,00,000: 15%
- ₹12,00,001 to ₹15,00,000: 20%
- Above ₹15,00,000: 30%
On top of this, a surcharge of 12% on the income tax payable is applied for income exceeding ₹1 crore but less than ₹2 crore
. Additionally, a health and education cess of 4% is levied on the total tax amount. To give a rough estimate, the effective tax rate including surcharge and cess for ₹1 crore income is approximately 40% or slightly more
. In summary, for ₹1 crore income:
- Base income tax as per slab rates
- Plus 12% surcharge on the income tax
- Plus 4% health and education cess on total tax
- Effective tax rate roughly around 40%+ of the income
