{ "actions" : { "get-rendered-content" : { "method" : "GET", "href" : "https://www.incometaxindia.gov.in/o/headless-delivery/v1.0/structured-contents/17328918/rendered-content/{contentTemplateId}" }, "get-rendered-content-by-display-page" : { "method" : "GET", "href" : "https://www.incometaxindia.gov.in/o/headless-delivery/v1.0/structured-contents/17328918/rendered-content-by-display-page/{displayPageKey}" }, "get" : { "method" : "GET", "href" : "https://www.incometaxindia.gov.in/o/headless-delivery/v1.0/structured-contents/17328918" } }, "availableLanguages" : [ "en-US", "hi-IN" ], "contentFields" : [ { "contentFieldValue" : { }, "dataType" : "string", "inputControl" : "select", "label" : "Locale", "name" : "locale", "nestedContentFields" : [ ], "repeatable" : false }, { "contentFieldValue" : { }, "dataType" : "string", "inputControl" : "select", "label" : "CMS Type", "name" : "sectionCmsType", "nestedContentFields" : [ ], "repeatable" : false }, { "contentFieldValue" : { "data" : "102520000000165172" }, "dataType" : "string", "inputControl" : "text", "label" : "CMS ID", "name" : "sectionCMSID", "nestedContentFields" : [ ], "repeatable" : false }, { "contentFieldValue" : { "data" : "2026-04-21T00:00:00Z" }, "dataType" : "date", "label" : "Date of Upload", "name" : "uploadDate", "nestedContentFields" : [ ], "repeatable" : false }, { "contentFieldValue" : { "data" : "First Schedule" }, "dataType" : "string", "inputControl" : "text", "label" : "Section Number", "name" : "sectionNumber", "nestedContentFields" : [ ], "repeatable" : false }, { "contentFieldValue" : { "data" : "-" }, "dataType" : "string", "inputControl" : "text", "label" : "Section Title", "name" : "sectionShortDescription", "nestedContentFields" : [ ], "repeatable" : false }, { "contentFieldValue" : { "data" : "Content", "value" : "content" }, "dataType" : "string", "inputControl" : "radio", "label" : "Content Type", "name" : "selectType", "nestedContentFields" : [ ], "repeatable" : false }, { "contentFieldValue" : { }, "dataType" : "document", "label" : "Upload PDF", "name" : "reportFile", "nestedContentFields" : [ ], "repeatable" : false }, { "contentFieldValue" : { "data" : "\n\n\n\n\n\n\n\n
 

THE FIRST SCHEDULE

(See sections 2 and 3)

PART I

A.—INCOME-TAX UNDER THE INCOME-TAX ACT, 1961

Paragraph A

(I) In the case of every individual other than the individual referred to in items (II) and (III) of this Paragraph or Hindu undivided family or association of persons or body of individuals, whether incorporated or not, or every artificial juridical person referred to in section 2(31)(vii) of the Income-tax Act, 1961 (43 of 1961) (hereafter in this Part I-A referred to as the said Act), not being a case to which Paragraphs B, C, D and E of this Part applies,—

Rates of income-tax

(1) where the total income does not exceed Rs. 2,50,000Nil;
(2) where the total income exceeds Rs. 2,50,000 but does not exceed Rs. 5,00,0005 per cent. of the amount by which the total income exceeds Rs. 2,50,000;
(3) where the total income exceeds Rs. 5,00,000 but does not exceed Rs. 10,00,000Rs. 12,500 plus 20 per cent. of the amount by which the total income exceeds Rs. 5,00,000;
(4) where the total income exceeds Rs.10,00,000Rs. 1,12,500plus 30 per cent. of the amount by which the total income exceeds Rs. 10,00,000.

(II) In the case of every individual, being a resident in India, who is of the age of sixty years or more but less than eighty years at any time during the previous year,—

Rates of income-tax

(1) where the total income does not exceed Rs. 3,00,000Nil;
(2) where the total income exceeds Rs. 3,00,000 but does not exceed Rs. 5,00,0005 per cent. of the amount by which the total income exceeds Rs. 3,00,000;
(3) where the total income exceeds Rs. 5,00,000 but does not exceed Rs. 10,00,000Rs. 10,000 plus 20 per cent. of the amount by which the total income exceeds Rs. 5,00,000;
(4) where the total income exceeds Rs. 10,00,000Rs. 1,10,000 plus 30 per cent. of the amount by which the total income exceeds Rs. 10,00,000.

(III) In the case of every individual, being a resident in India, who is of the age of eighty years or more at any time during the previous year,—

Rates of income-tax

(1) where the total income does not exceed Rs. 5,00,000Nil;
(2) where the total income exceeds Rs. 5,00,000 but does not exceed Rs. 10,00,00020 per cent. of the amount by which the total income exceeds Rs. 5,00,000;
(3) where the total income exceeds Rs. 10,00,000Rs. 1,00,000plus 30 per cent. of the amount by which the total income exceeds Rs. 10,00,000.

Paragraph B

In the case of every co-operative society,—

Rates of income-tax

(1) where the total income does not exceed Rs. 10,00010 per cent. of the total income;
(2) where the total income exceeds Rs. 10,000 but does not exceed Rs. 20,000Rs. 1,000 plus 20 per cent. of the amount by which the total income exceeds Rs. 10,000;
(3) where the total income exceeds Rs. 20,000Rs. 3,000 plus 30 per cent. of the amount by which the total income exceeds Rs. 20,000.

Paragraph C

In the case of every firm,—

Rate of income-tax

On the whole of the total income30 per cent.

Paragraph D

In the case of every local authority,—

Rate of income-tax

On the whole of the total income30 per cent.

Paragraph E

In the case of a company,—

Rates of income-tax

I. In the case of a domestic company,— 
\t(i)\t   where its total turnover or the gross receipt in the previous year 2023-24 does not exceed Rs. 400 crores

25 per cent. of the total income;

\t(ii)\t   other than that referred to in item (i)

30 per cent. of the total income.

II. In the case of a company other than a domestic company,— 
\t(i)\t   on so much of the total income as consists of,—
\t(a)\t   royalties received from Government or an Indian concern in pursuance of an agreement made by it with the Government or the Indian concern after the 31st March, 1961 but before the 1st April, 1976; or
\t(b)\t   fees for rendering technical services received from Government or an Indian concern in pursuance of an agreement made by it with the Government or the Indian concern after the 29th February, 1964 but before the 1st April, 1976,
  and where such agreement has, in either case, been approved by the Central Government;

50 per cent.;

\t(ii)\t   on the balance, if any, of the total income

35 per cent.

Paragraph F

Surcharge on income-tax

The amount of income-tax computed in accordance with Paragraphs A to E, or the provisions of section 111A or section 112 or section 112A of the said Act, in the case of person as specified in column B in Table 1 below, shall be increased by a surcharge, for the purposes of the Union, calculated at the rate or rates as specified in column C of the said Table, of such income-tax.

TABLE 1

Sl. No.PersonRate of surcharge
ABC

1.

\t(i)\t   Every individual; or
\t(ii)\t   Hindu undivided family; or
\t(iii)\t   association of persons, except in a case of an association of persons consisting of only companies as its members, whether incorporated or not; or
\t(iv)\t   body of individuals, whether incorporated or not; or
\t(v)\t   every artificial juridical person referred to in section 2(31)(vii) of the said Act.
\t(i)\t   Where the total income (including dividend income or capital gains under the provisions of sections 111A, 112 and 112A of the said Act) exceeds Rs. 50,00,000 but does not exceed Rs. 1,00,00,000, at the rate of 10 per cent.;
\t(ii)\t   where the total income (including dividend income or capital gains under the provisions of sections 111A, 112 and 112A of the s aid Act) exceeds Rs. 1,00,00,000 but does not exceed Rs. 2,00,00,000, at the rate of 15 per cent.;
\t(iii)\t   where the total income (excluding dividend income or capital gains under the provisions of sections 111A, 112 and 112A of the said Act) exceeds Rs. 2,00,00,000 but does not exceed Rs. 5,00,00,000, at the rate of 25 per cent.;
\t(iv)\t   where the total income (excluding dividend income or capital gains under the provisions of sections 111A, 112 and 112A of the said Act) exceeds Rs. 5,00,00,000, at the rate of 37 per cent.;
\t(v)\t   where the total income (including dividend income or capital gains under the provisions of sections 111A, 112 and 112A of the said Act) exceeds Rs. 2,00,00,000 but is not covered in clauses (iii) and (iv), at the rate of 15 per cent.;
\t(vi)\t   where the total income includes any dividend income or capital gains under the provisions of sections 111A, 112 and 112A of the said Act, the rate of surcharge on the amount of income-tax computed in respect of that part of income shall not exceed 15 per cent. and the provisions of clause (i) or (ii), as the case may be, shall apply accordingly.

2.

Association of persons consisting of only companies as its members.

\t(i)\t   Where the total income exceeds Rs. 50,00,000 but does not exceed Rs. 1,00,00,000, at the rate of 10 per cent;
\t(ii)\t   where the total income exceeds Rs. 1,00,00,000, at the rate of 15 per cent.

3.

Every co-operative society.

\t(i)\t   Where the total income exceeds Rs. 1,00,00,000 but does not exceed Rs. 10,00,00,000, at the rate of 7 per cent;
\t(ii)\t   where the total income exceeds Rs. 10,00,00,000, at the rate of 12 per cent.

4.

Every firm or local authority.

Where the total income exceeds Rs. 1,00,00,000, at the rate of 12 per cent.

5.

Every domestic company.

\t(i)\t   Where the total income exceeds Rs. 1,00,00,000 but does not exceed Rs. 10,00,00,000, at the rate of 7 per cent;
\t(ii)\t   where the total income exceeds Rs. 10,00,00,000, at the rate of 12 per cent.

6.

Every company, other than a domestic company.

\t(i)\t   Where the total income exceeds Rs. 1,00,00,000 but does not exceed Rs. 10,00,00,000, at the rate of 2 per cent;
\t(ii)\t   where the total income exceeds Rs. 10,00,00,000, at the rate of 5 per cent.

Further, in respect of the persons mentioned in column B of the Table 2 below, having total income exceeding the amount as specified in column C of the said Table but does not exceed the amount specified in column D thereof, the total amount payable as income-tax and surcharge thereon shall not exceed the amount determined as per the following formula:—

Wo = Uo + Vo

where,—

Wo= the total amount beyond which the total amount payable as income-tax and surcharge thereon shall not exceed;

Uo= the total amount payable as income-tax and surcharge, if applicable, on an amount as specified in column C of the Table 2 below; and

Vo= the total income - amount as specified in column C of the said Table.

TABLE 2

Sl. No.PersonAmountAmount
ABCD

1.

Table 1: Sl. No. 1.B.

Rs. 50,00,000.

Rs. 1,00,00,000.

Rs. 2,00,00,000.

Rs. 5,00,00,000.

Rs. 1,00,00,000.

Rs. 2,00,00,000.

Rs. 5,00,00,000.

2.

Table 1: Sl. No. 2.B.

Rs. 50,00,000.

Rs. 1,00,00,000.

Rs. 1,00,00,000.

3.

Table 1: Sl. No. 3.B.

Rs. 1,00,00,000.

Rs. 10,00,00,000.

Rs. 10,00,00,000.

4.

Table 1: Sl. No. 4.B.

Rs. 1,00,00,000.

-

5.

Table 1: Sl. Nos. 5.B and 6.B.

Rs. 1,00,00,000.

Rs. 10,00,00,000.

Rs. 10,00,00,000.

B.— INCOME-TAX UNDER THE INCOME-TAX ACT, 2025

Paragraph A

(I) In the case of every individual other than the individual referred to in items (II) and (III) of this Paragraph or Hindu undivided family or association of persons or body of individuals, whether incorporated or not, or every artificial juridical person referred to in section 2(77)(g) of the Income-tax Act, 2025 (30 of 2025) (hereafter in this Part I-B referred to as the said Act), not being a case to which Paragraphs B, C, D and E of this Part applies,—

Rates of income-tax

(1) where the total income does not exceed Rs. 250000Nil;
(2) where the total income exceeds Rs. 250000 but does not exceed Rs. 5000005% of the amount by which the total income exceeds Rs. 250000;
(3) where the total income exceeds Rs. 500000 but does not exceed Rs. 1000000Rs. 12500 plus 20% of the amount by which the total income exceeds Rs. 500000;
(4) where the total income exceeds Rs. 1000000Rs. 112500 plus 3 0% of the amount by which the total income exceeds Rs. 1000000.

(II) In the case of every individual, being a resident in India, who is of the age of sixty years or more but less than eighty years at any time during the tax year,—

Rates of income-tax

(1) where the total income does not exceed Rs. 300000Nil;
(2) where the total income exceeds Rs. 300000 but does not exceed Rs. 5000005% of the amount by which the total income exceeds Rs. 300000;
(3) where the total income exceeds Rs. 500000 but does not exceed Rs. 1000000Rs. 10000 plus 20% of the amount by which the total income exceeds Rs. 500000;
(4) where the total income exceeds Rs. 1000000Rs. 110000 plus 30% of the amount by which the total income exceeds Rs. 1000000.

(III) In the case of every individual, being a resident in India, who is of the age of eighty years or more at any time during the tax year,—

Rates of income-tax

(1) where the total income does not exceed Rs. 500000Nil;
(2) where the total income exceeds Rs. 500000 but does not exceed Rs. 100000020% of the amount by which the total income exceeds Rs. 500000;
(3) where the total income exceeds Rs. 1000000Rs. 100000 plus 30% of the amount by which the total income exceeds Rs. 1000000.

Paragraph B

In the case of every co-operative society,—

Rates of income-tax

(1) where the total income does not exceed Rs. 1000010% of the total income;
(2) where the total income exceeds Rs. 10000 but does not exceed Rs. 20000Rs. 1000 plus 20% of the amount by which the total income exceeds Rs. 10000;
(3) where the total income exceeds Rs. 20000Rs. 3000 plus 30% of the amount by which the total income exceeds Rs. 20000.

Paragraph C

In the case of every firm,—

Rate of income-tax

On the whole of the total income30%.

Paragraph D

In the case of every local authority,—

Rate of income-tax

On the whole of the total income30%.

Paragraph E

In the case of a company,—

Rates of income-tax

I. In the case of a domestic company,— 
\t(i)\t   where its total turnover or the gross receipt in the tax year 2024-25 does not exceed Rs. 400 crores;

25% of the total income;

\t(ii)\t   other than that referred to in item (i).

30% of the total income.

II. In the case of a company other than a domestic company,— 
\t(i)\t   on so much of the total income as consists of,—
\t(a)\t   royalties received from Government or an Indian concern in pursuance of an agreement made by it with the Government or the Indian concern after the 31st March, 1961 but before the 1st April, 1976; or
\t(b)\t   fees for rendering technical services received from Government or an Indian concern in pursuance of an agreement made by it with the Government or the Indian concern after the 29th February, 1964 but before the 1st April, 1976,
  and where such agreement has, in either case, been approved by the Central Government;

50%;

\t(ii)\t   on the balance, if any, of the total income.

35%.

Paragraph F

Surcharge on income-tax

The amount of income-tax computed in accordance with Paragraphs A to E, or the provisions of section 196, 197 or 198 of the said Act, in the case of person as specified in column B in Table 1 below, shall be increased by a surcharge, for the purposes of the Union, calculated at the rate or rates as specified in column C of the said Table, of such income-tax.

TABLE 1

Sl. No.PersonRate of surcharge
ABC

1.

\t(i)\t   Every individual;
\t(ii)\t   Hindu undivided family; or
\t(iii)\t   association of persons, except in a case of an association of persons consisting of only companies as its members, whether incorporated or not; or
\t(iv)\t   body of individuals, whether incorporated or not; or
\t(v)\t   every artificial juridical person referred to in section 2(77)(g) of the said Act.
\t(i)\t   Where the total income (including dividend income or capital gains under the provisions of sections 196, 197 and 198 of the said Act) exceeds Rs. 5000000 but does not exceed Rs. 10000000, at the rate of 10%;
\t(ii)\t   where the total income (including dividend income or capital gains under the provisions of sections 196, 197 and 198 of the said Act) exceeds Rs. 10000000 but does not exceed Rs. 20000000, at the rate of 15%;
\t(iii)\t   where the total income (excluding dividend income or capital gains under the provisions of sections 196, 197 and 198 of the said Act) exceeds Rs. 20000000 but does not exceed Rs. 50000000, at the rate of 25%;
\t(iv)\t   where the total income (excluding dividend income or capital gains under the provisions of sections 196, 197 and 198 of the said Act) exceeds Rs. 50000000, at the rate of 37%;
\t(v)\t   where the total income (including dividend income or capital gains under the provisions of sections 196, 197 and 198 of the said Act) exceeds Rs. 20000000, but is not covered in (iii) and (iv) above, at the rate of 15%;
\t(vi)\t   where the total income includes any dividend income or capital gains under the provisions of sections 196, 197 and 198 of the said Act, the rate of surcharge on the amount of income-tax computed in respect of that part of income shall not exceed 15% and the provisions of clause (i) or (ii), as the case may be, shall apply accordingly.

2.

Association of persons consisting of only companies as its members.

\t(i)\t   Where the total income exceeds Rs. 5000000 but does not exceed Rs. 10000000, at the rate of 10%;
\t(ii)\t   where the total income exceeds Rs. 10000000, at the rate of 15%.

3.

Every cooperative society.

\t(i)\t   Where the total income exceeds Rs. 10000000 but does not exceed Rs. 100000000, at the rate of 7%;
\t(ii)\t   where the total income exceeds Rs. 100000000, at the rate of 12%.

4.

Every firm or local authority.

Where the total income exceeds Rs. 10000000, at the rate of 12%.

5.

Every domestic company.

\t(i)\t   Where the total income exceeds Rs. 10000000 but does not exceed Rs. 100000000, at the rate of 7%;
\t(ii)\t   where the total income exceeds Rs. 100000000, at the rate of 12%.

6.

Every company, other than a domestic company.

\t(i)\t   Where the total income exceeds Rs. 10000000 but does not exceed Rs. 100000000, at the rate of 2%;
\t(ii)\t   where the total income exceeds Rs. 100000000, at the rate of 5%.

Further, in respect of the persons mentioned in column B of the Table 2 below, having total income exceeding the amount as specified in column C of the said Table but does not exceed the amount specified in column D thereof, the total amount payable as income-tax and surcharge thereon shall not exceed the amount determined as per the following formula:—

Wn = Un + Vn

where,—

Wn = the total amount beyond which the total amount payable as income-tax and surcharge thereon shall not exceed;

Un = the total amount payable as income-tax and surcharge, if applicable, on an amount as specified in column C of the Table 2 below; and

Vn = the total income - amount as specified in column C of the said Table.

TABLE 2

Sl. No.PersonAmountAmount
ABCD

1.

Table 1: Sl. No. 1.B.

Rs. 50,00,000.

Rs. 1,00,00,000.

Rs. 2,00,00,000.

Rs. 5,00,00,000.

Rs. 1,00,00,000.

Rs. 2,00,00,000.

Rs. 5,00,00,000.

-

2.

Table 1: Sl. No. 2.B.

Rs. 50,00,000.

Rs. 1,00,00,000.

Rs. 1,00,00,000.

-

3.

Table 1: Sl. No. 3.B.

Rs. 1,00,00,000.

Rs. 10,00,00,000.

Rs. 10,00,00,000.

-

4.

Table 1: Sl. No. 4.B.

Rs. 1,00,00,000.

-

5.

Table 1: Sl. Nos. 5.B and 6.B.

Rs. 1,00,00,000.

Rs. 10,00,00,000.

Rs. 10,00,00,000.

-

PART II

RATES FOR DEDUCTION OF TAX AT SOURCE IN CERTAIN CASES

In every case in which under the provisions of sections 393(1) [Table: Sl. Nos. 1(i) and 5], 393(2) [Table: Sl. Nos. 7, 8, 9 and 17] and 393(3) [Table: Sl. Nos. 1, 2 and 3] of the Income-tax Act, 2025 (30 of 2025) (hereafter in this Part referred to as the said Act), tax is to be deducted at the rates in force, deduction shall be made from the income subject to the deduction at the following rates:—

  Rate of income-tax

1.

In the case of a person other than a company—

\t(a)\t   where the person is resident in India,—
 
 
\t(i)\t   on income by way of interest other than "Interest on securities"

10%;

 
\t(ii)\t   on income by way of winnings from lotteries, puzzles, card games and other games of any sort (other than winnings from online games)

30%;

 
\t(iii)\t   on income by way of winnings from horse races

30%;

 
\t(iv)\t   on income by way of net winnings from online games

30%;

 
\t(v)\t   on income by way of insurance commission

2%;

 
\t(vi)\t   on income by way of interest payable on—
\t(A)\t   any debentures or securities for money issued by or on behalf of any local authority or a corporation established by a Central, State or Provincial Act
\t(B)\t   any debentures issued by a company where such debentures are listed on a recognised stock exchange in India in accordance with the Securities Contracts (Regulation) Act, 1956 (42 of 1956) and the rules made thereunder
\t(C)\t   any security of the Central Government or State Government

10%;

\t(vii)\t   on any other income

10%;

\t(b)\t   where the person is not resident in India,—
\t(i)\t   in the case of a non-resident Indian,—
 
\t(A)\t   on any investment income

20%;

 
\t(B)\t   on income by way of long-term capital gains referred to in section 214 or 197(4) of the said Act

12.5%;

 
\t(C)\t   on income by way of long-term capital gains referred to in section 198 of the said Act exceeding ? 125000

12.5%;

 
\t(D)\t   on other income by way of long-term capital gains [not being long-term capital gains referred to in Schedule II [Table: Sl. Nos. 14 and 17] [to the extent it relates to section 10(36) of the Income-tax Act, 1961 (43 of 1961)] of the said Act]

12.5%;

 
\t(E)\t   on income by way of short-term capital gains referred to in section 196 of the said Act

20%;

 
\t(F)\t   on income by way of interest payable by Government or an Indian concern on moneys borrowed or debt incurred by Government or the Indian concern in foreign currency (not being income by way of interest referred to in section 393(2) [Table: Sl. Nos. 2 to 5] of the said Act)

20%;

 
\t(G)\t   on income by way of royalty payable by Government or an Indian concern in pursuance of an agreement made by it with the Government or the Indian concern where such royalty is in consideration for the transfer of all or any rights (including the granting of a licence) in respect of copyright in any book referred to in section 207(3)(a) of the said Act, to the Indian concern, or in respect of any computer software referred to in section 207(3)(b) of the said Act, to a person resident in India

20%;

 
\t(H)\t   on income by way of royalty [not being royalty of the nature referred to in sub-item (b)(i)(G)] payable by Government or an Indian concern in pursuance of an agreement made by it with the Government or the Indian concern and where such agreement is with an Indian concern, the agreement is approved by the Central Government or where it relates to a matter included in the industrial policy of the Government of India, the agreement is in accordance with that policy

20%;

 
\t(I)\t   on income by way of fees for technical services payable by Government or an Indian concern in pursuance of an agreement made by it with the Government or the Indian concern and where such agreement is with an Indian concern, the agreement is approved by the Central Government or where it relates to a matter included in the industrial policy of the Government of India, the agreement is in accordance with that policy

20%;

 
\t(J)\t   on income by way of winnings from lotteries, crossword puzzles, card games and other games of any sort (other than winnings from online games)

30%;

 
\t(K)\t   on income by way of winnings from horse races

30%;

 
\t(L)\t   on income by way of net winnings from online games

30%;

 
\t(M)\t   on income by way of dividend, referred to in section 207(1) [Table: Sl. No. 2] of the said Act

10%;

 
\t(N)\t   on income by way of dividend other than the income referred to in sub-item (b)(i)(M)

20%;

 
\t(O)\t   on the whole of the other income
\t(ii)\t   in the case of any other person,—

30%;

 
\t(A)\t   on income by way of interest payable by Government or an Indian concern on moneys borrowed or debt incurred by Government or the Indian concern in foreign currency (not being income by way of interest referred to in section 393(2) [Table: Sl. Nos. 2 to 5] of the said Act)

20%;

 
\t(B)\t   on income by way of royalty payable by Government or an Indian concern in pursuance of an agreement made by it with the Government or the Indian concern where such royalty is in consideration for the transfer of all or any rights (including the granting of a licence) in respect of copyright in any book referred to in section 207(3)(a) of the said Act, to the Indian concern, in respect of any computer software referred to in section 207(3)(b) of the said Act, to a person resident in India

20%;

 
\t(C)\t   on income by way of royalty [not being royalty of the nature referred to in sub-item (b)(ii)(B)] payable by Government or an Indian concern in pursuance of an agreement made by it with the Government or the Indian concern and where such agreement is with an Indian concern, the agreement is approved by the Central Government or where it relates to a matter included in the industrial policy of the Government of India, the agreement is in accordance with that policy

20%;

 
\t(D)\t   on income by way of fees for technical services payable by Government or an Indian concern in pursuance of an agreement made by it with the Government or the Indian concern and where such agreement is with an Indian concern, the agreement is approved by the Central Government or where it relates to a matter included in the industrial policy of the Government of India, the agreement is in accordance with that policy

20%;

 
\t(E)\t   on income by way of winnings from lotteries, crossword puzzles, card games and other games of any sort (other than winnings from online games)

30%;

 
\t(F)\t   on income by way of winnings from horse races

30%;

 
\t(G)\t   on income by way of net winnings from online games

30%;

 
\t(H)\t   on income by way of short-term capital gains referred to in section 196 of the said Act

20%;

 

\t(I)\t   on income by way of long-term capital gains referred to in section 197(4) of the said Act

12.5%;

 
\t(J)\t   on income by way of long-term capital gains referred to in section 198 of the said Act exceeding ? 125000

12.5%;

 
\t(K)\t   on other income by way of long-term capital gains [not being long-term capital gains referred to in Schedule II [Table: Sl. Nos. 14 and 17] [to the extent it relates to section 10(36) of the Income-tax Act, 1961 (43 of 1961)] of the said Act

12.5%;

 
\t(L)\t  on income by way of dividend, referred to in section 207(1) [Table: Sl. No. 2] of the said Act
10%;
 
\t(M)\t   on income by way of dividend other than the income referred to in sub-item (b)(ii)(L)

20%;

 
\t(N)\t   on the whole of the other income

30%;

2.

In the case of a company,—

\t(a)\t   where the company is a domestic company—
 
 
\t(i)\t   on income by way of interest other than "Interest on securities"

10%;

 
\t(ii)\t   on income by way of winnings from lotteries, puzzles, card games and other games of any sort (other than winnings from online games)

30%;

 
\t(iii)\t   on income by way of winnings from horse races

30%;

 
\t(iv)\t   on income by way of net winnings from online games

30%;

 
\t(v)\t   on any other income
\t(b)\t   where the company is not a domestic company—

10%;

 
\t(i)\t   on income by way of winnings from lotteries, crossword puzzles, card games and other games of any sort (other than winnings from online games)

30%;

 
\t(ii)\t   on income by way of winnings from horse races

30%;

 
\t(iii)\t   on income by way of net winnings from online games

30%;

 
\t(iv)\t   on income by way of interest payable by Government or an Indian concern on moneys borrowed or debt incurred by Government or the Indian concern in foreign currency (not being income by way of interest referred to in section 393(2) [Table: Sl. Nos. 2 to 5] of the said Act)

20%;

 
\t(v)\t   on income by way of royalty payable by Government or an Indian concern in pursuance of an agreement made by it with the Government or the Indian concern after the 31st March, 1976 where such royalty is in consideration for the transfer of all or any rights (including the granting of a licence) in respect of copyright in any book referred to in section 207(3)(a) of the said Act, to the Indian concern, or in respect of any computer software referred to in section 207(3)(b) of the said Act, to a person resident in India

20%;

 
\t(vi)\t   on income by way of royalty [not being royalty of the nature referred to in item (b)(v)] payable by Government or an Indian concern in pursuance of an agreement made by it with the Government or the Indian concern and where such agreement is with an Indian concern, the agreement is approved by the Central Government or where it relates to a matter included in the industrial policy of the Government of India, the agreement is in with that policy—

 

 
\t(A)\t   where the agreement is made after the 31st March, 1961 but before the 1st April, 1976

50%;

 
\t(B)\t   where the agreement is made after the 31st March, 1976

20%;

 
\t(vii)\t   on income by way of fees for technical services payable by Government or an Indian concern in pursuance of an agreement made by it with the Government or the Indian concern and where such agreement is with an Indian concern, the agreement is approved by the Central Government or where it relates to a matter included in the industrial policy of the Government of India, the agreement is in accordance with that policy—

 

 
\t(A)\t   where the agreement is made after the 29th February, 1964 but before the 1st April, 1976

50%;

 
\t(B)\t   where the agreement is made after the 31st March, 1976

20%;

 
\t(viii)\t   on income by way of short-term capital gains referred to in section 196 of the said Act

20%;

 
\t(ix)\t   on income by way of long-term capital gains referred to in section 197(4) of the said Act

12.5%;

 
\t(x)\t   on income by way of long-term capital gains referred to in section 198 of the said Act exceeding ?125000

12.5%;

 
\t(xi)\t   on other income by way of long-term capital gains [not being long-term capital gains referred to in Schedule II] [Table: Sl. Nos. 14 and 17] [to the extent it relates to section 10(36) of the Income-tax Act, 1961 (43 of 1961)] of the said Act

12.5%;

 
\t(xii)\t   on income by way of dividend, referred to in section 207(1) [Table: Sl. No. 2] of the said Act

10%;

 
\t(xiii)\t   on income by way of dividend other than the income referred to in item (b)(xii)

20%;

 
\t(xiv)\t   on any other income

35%;

Note.—For the purposes of item 1(b)(i) of this Part, "investment income" anc "non-resident Indian" shall have the meanings respectively assigned to them in section 212 of the said Act.

Surcharge on income-tax

The amount of income-tax deducted as per the provisions of this Part, in the case of a person as specified in column B of the Table below, shall be increased by a surcharge, for the purposes of the Union, calculated at the rate or rates as specified in column C of the said Table, of such tax.

TABLE

Sl. No.Person in respect of which deduction has to be madeRate of surcharge
ABC

1.

\t(i)\t   Every individual; or
\t(ii)\t   Hindu undivided family; or
\t(iii)\t   association of persons, except in a case of an association of persons consisting of only companies as its members, whether incorporated or not; or
\t(iv)\t   body of individuals, whether incorporated or not; or
\t(v)\t   every artificial juridical person referred to in section 2(77)(g) of the said Act,

being a non-resident, except in case where the income of such person, is chargeable to tax under section 202 of the said Act.

\t(i)\t   Where the income or the aggregate of such incomes (including dividend income or capital gains under the provisions of sections 196, 197 and 198 of the said Act) paid or likely to be paid and subject to the deduction exceeds Rs. 5000000 but does not exceed Rs. 10000000, at the rate of 10%;
\t(ii)\t   where the income or the aggregate of such incomes (including dividend income or capital gains under the provisions of sections 196, 197 and 198 of the said Act) paid or likely to be paid and subject to the deduction exceeds Rs. 10000000 but does not exceed Rs. 20000000, at the rate of 15%;
\t(iii)\t   where the income or the aggregate of such incomes (excluding dividend income or capital gains under the provisions of sections 196, 1 97 and 198 of the said Act) paid or likely to be paid and subject to the deduction exceeds Rs. 20000000 but does not exceed Rs. 50000000, at the rate of 25%;
\t(iv)\t   where the income or the aggregate of such incomes (excluding dividend income or capital gains under the provisions of sections 196, 197 and 198 of the said Act) paid or likely to be paid and subject to the deduction exceeds Rs. 50000000, at the rate of 37%;
\t(v)\t   where the income or the aggregate of such incomes (including dividend income or capital gains under the provisions of sections 196, 197 and 198 of the said Act) paid or likely to be paid and subject to the deduction exceeds Rs. 20000000, but is not covered under clauses (iii) and (iv), at the rate of 15%;
\t(vi)\t   where the total income includes dividend income or capital gains under sections 196, 197 and 198 of the said Act, the rate of surcharge on the amount of income-tax computed in respect of that part of income shall not exceed 15% and the clause (i) or (ii), as the case may be, shall apply accordingly.

2.

\t(i)\t   Every individual; or
\t(ii)\t   Hindu undivided family; or
\t(iii)\t   association of persons, except in a case of an association of persons consisting of only companies as its members, whether incorporated or not; or
\t(iv)\t   body of individuals, whether incorporated or not; or
\t(v)\t   every artificial juridical person referred to in section 2(77)(g) of the said Act,

being a non-resident where the income of such person is chargeable to tax under section 202 of the said Act.

\t(i)\t   Where the income or the aggregate of such incomes (including dividend income or capital gains under the provisions of sections 196, 197 and 198 of the said Act) paid or likely to be paid and subject to the deduction exceeds Rs 5000000 but does not exceed Rs. 10000000, at the rate of 10%;
\t(ii)\t   where the income or the aggregate of such incomes (including dividend income or capital gains under the provisions of sections 196, 197 and 198 of the said Act) paid or likely to be paid and subject to the deduction exceeds Rs. 10000000 but does not exceed Rs. 20000000, at the rate of 15%;
\t(iii)\t   where the income or the aggregate of such incomes (excluding dividend income or capital gains under the provisions of sections 196, 1 97 and 198 of the said Act) paid or likely to be paid and subject to the deduction exceeds Rs. 20000000, at the rate of 25%;
\t(iv)\t   where the income or the aggregate of such incomes (including dividend income or capital gains under the provisions of sections 196, 197 and 198 of the said Act) paid or likely to be paid and subject to the deduction exceeds Rs. 20000000 but is not covered under clause (iii), at the rate of 15%;
\t(v)\t   here the total income includes dividend income or capital gains under sections 196, 197 and 198 of the said Act, the rate of surcharge on the amount of income-tax deducted in respect of that part of income shall not exceed 15% and the clause (i) or (ii), as the case may be, shall apply accordingly.

3.

Association of persons, being a non-resident, and consisting of only companies as its members.

\t(i)\t   Where the income or the aggregate of such incomes paid or likely to be paid and subject to the deduction exceeds Rs. 5000000 but does not exceed Rs. 10000000, at the rate of 10%;
\t(ii)\t   where the income or the aggregate of such incomes paid or likely to be paid and subject to the deduction exceeds Rs. 10000000, at the rate of 15%.

4.

Every co-operative society, being a non- resident.

\t(i)\t   Where the income or the aggregate of such incomes paid or likely to be paid and subject to the deduction exceeds Rs. 10000000 but does not exceed Rs. 100000000, at the rate of 7%;
\t(ii)\t   where the income or the aggregate of such incomes paid or likely to be paid and subject to the deduction exceeds Rs. 100000000, at the rate of 12%.

5.

Every firm, being a non-resident.

Where the income or the aggregate of such incomes paid or likely to be paid and subject to the deduction exceeds Rs. 10000000, at the rate of 12%.

6.

Every company, other than a domestic company.

\t(i)\t   Where the income or the aggregate of such incomes paid or likely to be paid and subject to the deduction exceeds Rs. 10000000 but does not exceed Rs. 100000000, at the rate of 2%;
\t(ii)\t   where the income or the aggregate of such incomes paid or likely to be paid and subject to the deduction exceeds Rs. 100000000, at the rate of 5%.

PART III

RATES FOR CHARGING INCOME-TAX IN CERTAIN CASES, DEDUCTING INCOME-TAX FROM INCOME CHARGEABLE UNDER THE HEAD "SALARIES" AND COMPUTING "ADVANCE TAX"

In cases in which income-tax has to be charged under section 316(5) of the Income-tax Act, 2025 (30 of 2025) (hereafter in this Part referred to as the said Act) or section 317(2) or 318 or 319 or 320(2) of the said Act or deducted from, or paid on, from income chargeable under the head "Salaries" under section 392 [other than sub-section (7) of the said section] of the said Act or deducted under section 393(1) [Table: Sl. No. 8(1/1)] of the said Act or in which the "advance tax" payable under Chapter XIX-C of the said Act has to be computed at the rate or rates in force, such income-tax or, as the case may be, "advance tax" [not being "advance tax" in respect of any income chargeable to tax under Part A, B, C or D of Chapter XIII or section 207 to 218, 223, 224, 307, 308, 311 or 334 of the said Act at the rates as specified in that Chapter or section or surcharge, wherever applicable, on such "advance tax" in respect of any income chargeable to tax under section 193, 194, 195, 199, 200, 201, 202, 203, 204, 206, 207, 208, 209, 210, 211, 214, 218 or 334 of the said Act] shall be charged, deducted or computed at the following rate or rates:—

Paragraph A

(I) In the case of every individual other than the individual referred to in items (II) and (III) of this Paragraph or Hindu undivided family or association of persons or body of individuals, whether incorporated or not, or every artificial juridical person referred to in section 2(77)(g) of the said Act, not being a case to which Paragraphs B, C, D and E of this Part applies,—

Rates of income-tax

(1) where the total income does not exceed Rs. 250000Nil;
(2) where the total income exceeds Rs. 250000 but does not exceed Rs. 5000005% of the amount by which the total income exceeds Rs. 250000;
(3) where the total income exceeds Rs. 500000 but does not exceed Rs. 1000000Rs. 12500 plus 20% of the amount by which the total income exceeds Rs. 500000;
(4) where the total income exceeds Rs. 1000000Rs. 112500plus 30% of the amount by which the total income exceeds Rs. 1000000.

(II) In the case of every individual, being a resident in India, who is of the age of sixty years or more but less than eighty years at any time during the tax year,—

Rates of income-tax

(1) where the total income does not exceed Rs. 300000Nil;
(2) where the total income exceeds Rs. 300000 but does not exceed Rs. 5000005% of the amount by which the total income exceeds ? 300000;
(3) where the total income exceeds Rs. 500000 but does not exceed Rs. 1000000Rs. 10000 plus 20% of the amount by which the total income exceeds Rs. 500000;
(4) where the total income exceeds Rs. 1000000Rs. 110000 plus 30% of the amount by which the total income exceeds Rs. 1000000.

(III) In the case of every individual, being a resident in India, who is of the age of eighty years or more at any time during the tax year,—

Rates of income-tax

(1) where the total income does not exceed Rs. 500000Nil;
(2) where the total income exceeds Rs. 500000 but does not exceed Rs. 100000020% of the amount by which the total income exceeds Rs. 500000;
(3) where the total income exceeds Rs. 1000000Rs. 100000 plus 30% of the amount by which the total income exceeds Rs. 1000000.

Paragraph B

In the case of every co-operative society,—

Rates of income-tax

(1) where the total income does not exceed Rs. 1000010% of the total income;
(2) where the total income exceeds Rs. 10000 but does not exceed Rs. 20000Rs. 1000 plus 20% of the amount by which the total income exceeds Rs. 10000;
(3) where the total income exceeds Rs. 20000Rs. 3000 plus 30% of the amount by which the total income exceeds Rs. 20000.

Paragraph C

In the case of every firm,—

Rate of income-tax

On the whole of the total income30%.

Paragraph D

In the case of every local authority,—

Rate of income-tax

On the whole of the total income30%.

Paragraph E

In the case of a company,—

Rates of income-tax

I. In the case of a domestic company,— 
\t(i)\t   where its total turnover or the gross receipt in the tax year 2024-25 does not exceed Rs. 400 crores;

25% of the total income;

\t(ii)\t   other than that referred to in item (i)

3 0 % of the total income.

II. In the case of a company other than a domestic company,—

 
\t(i)\t   on so much of the total income as consists of,—
\t(a)\t   royalties received from Government or an Indian concern in pursuance of an agreement made by it with the Government or the Indian concern after the 31st March, 1961 but before the 1st April, 1976; or
\t(b)\t   fees for rendering technical services received from Government or an Indian concern in pursuance of an agreement made by it with the Government or the Indian concern after the 29th February, 1964 but before the 1st April, 1976,

and where such agreement has, in either case, been approved by the Central Government;

50%;

\t(ii)\t   on the balance, if any, of the total income

35%.

Paragraph F

Surcharge on income-tax

The amount of income-tax computed in accordance with the Paragraphs A to E, or the provisions of section 196, 197 or 198 of the said Act, in the case of person as specified in column B in Table 1 below, shall be increased by a surcharge, for the purposes of the Union, calculated at the rate or rates as specified in column C of the said Table, of such income-tax.

TABLE 1

Sl. No.PersonRate of surcharge
ABC

1.

\t(i)\t   Every individual; or
\t(ii)\t   Hindu undivided family; or
\t(iii)\t   association of persons, except in a case of an association of persons consisting of only companies as its members, whether incorporated or not; or
\t(iv)\t   body of individuals, whether incorporated or not; or
\t(v)\t   every artificial juridical person referred to in section 2(77)(g) of the said Act.
\t(i)\t   Where the total income (including dividend income or capital gains under the provisions of sections 196, 197 and 198 of the said Act) exceeds Rs. 5000000 but does not exceed Rs. 10000000, at the rate of 10%;
\t(ii)\t   where the total income (including dividend income or capital gains under the provisions of sections 196, 197 and 198 of the said Act) exceeds Rs. 10000000 but does not exceed Rs. 20000000, at the rate of 15%;
\t(iii)\t   where the total income (excluding dividend income or capital gains under the provisions of sections 196, 197 and 198 of the said Act) exceeds Rs. 20000000 but does not exceed Rs. 50000000, at the rate of 25%;
\t(iv)\t   where the total income (excluding dividend income or capital gains under the provisions of sections 196, 197 and 198 of the said Act) exceeds Rs. 50000000, at the rate of 37%;
\t(v)\t   where the total income (including dividend income or capital gains under the provisions of sections 196, 197 and 198 of the said Act) exceeds Rs. 20000000, but is not covered in (iii) and (iv) above, at the rate of 15%;
\t(vi)\t   where the total income includes any dividend income or capital gains under the provisions of sections 196, 197 and 198 of the said Act, the rate of surcharge on the amount of income-tax computed in respect of that part of income shall not exceed 15% and the provisions of clause (i) or (ii), as the case may be, shall apply accordingly.

2.

Association of persons consisting of only companies as its members.

\t(i)\t   Where the total income exceeds Rs. 5000000 but does not exceed Rs. 10000000, at the rate of 10%;
\t(ii)\t   where the total income exceeds Rs. 10000000, at the rate of 15%.

3.

Every co-operative society.

\t(i)\t   Where the total income exceeds Rs. 10000000 but does not exceed Rs. 100000000, at the rate of 7%;
\t(ii)\t   where the total income exceeds Rs. 100000000, at the rate of 12%.

4.

Every firm or local authority.

Where the total income exceeds Rs. 10000000, at the rate of 12%.

5.

Every domestic company.

\t(i)\t   Where the total income exceeds Rs. 10000000 but does not exceed Rs. 100000000, at the rate of 7%;
\t(ii)\t   where the total income exceeds Rs. 100000000, at the rate of 12%.

6.

Every company, other than a domestic company.

\t(i)\t   Where the total income exceeds Rs. 10000000 but does not exceed Rs. 100000000, at the rate of 2%;
\t(ii)\t   where the total income exceeds Rs. 100000000, at the rate of 5%.

Further, in respect of the persons mentioned in column B of the Table 2 below, having total income exceeding the amount as specified in column C of the said Table but does not exceed the amount specified in column D thereof, the total amount payable as income-tax and surcharge thereon shall not exceed the amount determined as per the following formula:—

Wa = Ua + Va

where,—

Wa = the total amount beyond which the total amount payable as income-tax and surcharge thereon shall not exceed;

Ua = the total amount payable as income-tax and surcharge, if applicable, on an amount as specified in column C of the Table 2 below; and

Va = the total income - amount as specified in column C of the said Table.

TABLE 2

Sl. No.PersonAmountAmount
ABCD

1.

Table 1: Sl. No. 1.B.

Rs. 5000000.

Rs.10000000.

Rs. 20000000.

Rs. 50000000.

Rs. 10000000.

Rs. 20000000.

Rs. 50000000.

-

2.

Table 1: Sl. No. 2.B.

Rs. 5000000.

Rs. 10000000.

Rs.10000000.

-

3.

Table 1: Sl. No. 3.B.

Rs. 10000000.

Rs. 100000000.

Rs. 100000000.

-

4.

Table 1: Sl. No. 4.B.

Rs. 10000000.

-

5.

Table 1: Sl. No. 5.B and 6.B.

Rs. 10000000.

Rs. 100000000.

Rs. 100000000.

-

PART IV

RULES FOR COMPUTATION OF NET AGRICULTURAL INCOME

A.—UNDER THE INCOME-TAX ACT, 1961

[See section 2(7)(b)]

Rule 1.—(1) Agricultural income of the nature referred to in section 2(1A)(a) of the Income-tax Act, 1961 (43 of 1961) (hereafter in this Part IV-A referred to as the said Act) shall be computed as if it were income chargeable to income-tax under the said Act under the head "Income from other sources" and the provisions of sections 57 to 59 of the said Act shall, so far as may be, apply accordingly.

(2) For the purposes of sub-rule (1), section 58(2) of the said Act shall apply subject to the modification that the reference to section 40A of the said Act therein shall be construed as not including a reference to sub-sections (3), (3A) and (4) of section 40A.

Rule 2.—Agricultural income of the nature referred to in section 2(lA)(b) or (c) of the said Act [other than income derived from any building required as a dwelling-house by the receiver of the rent or revenue of the cultivator or the receiver of rent-in-kind referred to in the said sub-clause (c)] shall be computed as if it were income chargeable to income-tax under the said Act under the head "Profits and gains of business or profession" and the provisions of sections 30, 31, 32, 36, 37, 38, 40, 40A [other than sub-sections (3), (3A) and (4) thereof], 41, 43, 43A, 43B and 43C of the said Act shall, so far as may be, apply accordingly.

Rule 3.—Agricultural income of the nature referred to in section 2(1A)(c) of the said Act, being income derived from any building required as a dwelling-house by the receiver of the rent or revenue or the cultivator or the receiver of rent-in-kind referred to in the said sub-clause (c) shall be computed as if it were income chargeable to income-tax under the said Act under the head "Income from house property" and the provisions of sections 23 to 27 of that Act shall, so far as may be, apply accordingly.

Rule 4.—Irrespective of anything contained in any other provisions of these rules, in a case—

\t(a)\t   where the assessee derives income from sale of tea grown and manufactured by him in India, such income shall be computed as per rule 8 of the Income-tax Rules, 1962, and 60% of such income shall be regarded as the agricultural income of the assessee;
\t(b)\t   where the assessee derives income from sale of centrifuged latex or cenex or latex based crepes (such as pale latex crepe) or brown crepes (such as estate brown crepe, re-milled crepe, smoked blanket crepe or flat bark crepe) or technically specified block rubbers manufactured or processed by him from rubber plants grown by him in India, such income shall be computed as per rule 7A of the Income-tax Rules, 1962, and 65% of such income shall be regarded as the agricultural income of the assessee;
\t(c)\t   where the assessee derives income from sale of coffee grown and manufactured by him in India, such income shall be computed as per rule 7B of the Income-tax Rules, 1962, and 60% or 75%, as the case may be, of such income shall be regarded as the agricultural income of the assessee.

Rule 5.—Where the assessee is a member of an association of persons or a body of individuals (other than a Hindu undivided family, a company or a firm) which in the previous year has either no income chargeable to tax under the said Act or has total income not exceeding the maximum amount not chargeable to tax in the case of an association of persons or a body of individuals (other than a Hindu undivided family, a company or a firm) but has any agricultural income then, the agricultural income or loss of the association or body shall be computed in accordance with these rules and the share of the assessee in the agricultural income or loss so computed shall be regarded as the agricultural income or loss of the assessee.

Rule 6.—(1) Where the result of the computation for the previous year in respect of any source of agricultural income is a loss, such loss shall be set off against the income of the assessee, if any, for that previous year from any other source of agricultural income.

(2) Irrespective of anything contained in sub-rule (1), where the assessee is a member of an association of persons or a body of individuals and the share of the assessee in the agricultural income of the association or body, as the case may be, is a loss, such loss shall not be set off against any income of the assessee from any other source of agricultural income.

Rule 7.—Any sum payable by the assessee on account of any tax levied by the State Government on the agricultural income shall be deducted in computing the agricultural income.

Rule 8.—(1) Where the assessee has, in the previous year relevant to the assessment year commencing on the 1st April, 2026, any agricultural income and the net result of the computation of the agricultural income of the assessee for any one or more of the previous years relevant to the assessment years commencing on the 1st April, 2018 or the 1st April, 2019 or the 1st April, 2020 or the 1st April, 2021 or the 1st April, 2022 or the 1st April, 2023 or the 1st April, 2024, or the 1st April, 2025, is a loss, then, for the purposes of section 2(2) of this Act,—

\t(i)\t   the loss so computed for the previous year relevant to the assessment year commencing on the 1st April, 2018, to the extent, if any, such loss has not been set off against the agricultural income for the previous year relevant to the assessment year commencing on the 1st April, 2019 or the 1st April, 2020 or the 1st April, 2021 or the 1st April, 2022 or the 1st April, 2023 or the 1st April, 2024, or the 1st April, 2025;
\t(ii)\t   the loss so computed for the previous year relevant to the assessment year commencing on the 1st April, 2019, to the extent, if any, such loss has not been set off against the agricultural income for the previous year relevant to the assessment year commencing on the 1st April, 2020 or the 1st April, 2021 or the 1st April, 2022 or the 1st April, 2023 or the 1st April, 2024, or the 1st April, 2025;
\t(iii)\t   the loss so computed for the previous year relevant to the assessment year commencing on the 1st April, 2020, to the extent, if any, such loss has not been set off against the agricultural income for the previous year relevant to the assessment year commencing on the 1st April, 2021 or the 1st April, 2022 or the 1st April, 2023 or the 1st April, 2024, or the 1st April, 2025;
\t(iv)\t   the loss so computed for the previous year relevant to the assessment year commencing on the 1st April, 2021, to the extent, if any, such loss has not been set off against the agricultural income for the previous year relevant to the assessment year commencing on the 1st April, 2022 or the 1st April, 2023 or the 1st April, 2024, or the 1st April, 2025;
\t(v)\t   the loss so computed for the previous year relevant to the assessment year commencing on the 1st April, 2022, to the extent, if any, such loss has not been set off against the agricultural income for the previous year relevant to the assessment year commencing on the 1st April, 2023 or the 1st April, 2024, or the 1st April, 2025;
\t(vi)\t   the loss so computed for the previous year relevant to the assessment year commencing on the 1st April, 2023, to the extent, if any, such loss has not been set off against the agricultural income for the previous year relevant to the assessment year commencing on the 1st April, 2024, or the 1st April, 2025;
\t(vii)\t   the loss so computed for the previous year relevant to the assessment year commencing on the 1st April, 2024, to the extent, if any, such loss has not been set off against the agricultural income for the previous year relevant to the assessment year commencing on the 1st April, 2025;
\t(viii)\t   the loss so computed for the previous year relevant to the assessment year commencing on the 1st April, 2025,

shall be set off against the agricultural income of the assessee for the previous year relevant to the assessment year commencing on the 1st April, 2026.

(2) Where any person deriving any agricultural income from any source has been succeeded in such capacity by another person, otherwise than by inheritance, nothing in sub-rule (1) shall entitle any person, other than the person incurring the loss, to have it set off under sub-rule (1).

(3) Irrespective of anything contained in this rule, no loss which has not been determined by the Assessing Officer under the provisions of these rules or the rules contained in the First Schedule to the Finance Act, 2018 (13 of 2018) or the First Schedule to the Finance (No. 2) Act, 2019 (23 of 2019) or the First Schedule to the Finance Act, 2020 (12 of 2020) or the First Schedule to the Finance Act, 2021 (13 of 2021) or the First Schedule to the Finance Act, 2022 (6 of 2022) or the First Schedule to the Finance Act, 2023 (8 of 2023) or the First Schedule to the Finance (No. 2) Act, 2024 (15 of 2024) or the First Schedule to the Finance Act, 2025 (7 of 2025) shall be set off under sub-rule (1).

Rule 9.—Where the net result of the computation made as per these rules is a loss, the loss so computed shall be ignored and the net agricultural income shall be deemed to be nil.

Rule 10.—The provisions of the said Act relating to procedure for assessment (including the provisions of section 288A relating to rounding off of income) shall, with the necessary modifications, apply in relation to the computation of the net agricultural income of the assessee as they apply in relation to the assessment of the total income.

Rule 11.—For the purposes of computing the net agricultural income of the assessee, the Assessing Officer shall have the same powers as he has under the said Act for the purposes of assessment of the total income.

B.—UNDER THE INCOME-TAX ACT, 2025

[See section 3(18)(c)]

Rule 1.—(1) Agricultural income of the nature referred to in section 2(5)(a) of the Income-tax Act, 2025 (30 of 2025) (hereafter in this Part IV-B referred to as the said Act) shall be computed as if it were income chargeable to income-tax under the said Act under the head "Income from other sources" and the provisions of sections 93 to 95 of the said Act shall, so far as may be, apply accordingly.

(2) For the purposes of sub-rule (1), section 94(2) of the said Act shall apply subject to the modification that the reference to section 36 of the said Act therein shall be construed as not including a reference to sub-sections (4), (5), (6), (7) and (8) of section 36.

Rule 2.—Agricultural income of the nature referred to in section 2(5)(b) or (c) of the said Act [other than income derived from any building required as a dwelling-house by the receiver of the rent or revenue of the cultivator or the receiver of rent-in-kind referred to in the said sub-clause (c)] shall be computed as if it were income chargeable to income-tax under the said Act under the head "Profits and gains of business or profession" and the provisions of sections 28, 29, 30, 31, 32, 33, 34, 35, 36 [other than sub-sections (4), (5), (6), (7) and (8) thereof], 37, 38, 39, 40, 42 and 66 of the said Act shall, so far as may be, apply accordingly.

Rule 3.—Agricultural income of the nature referred to in section 2(5)(c) of the said Act, being income derived from any building required as a dwelling-house by the receiver of the rent or revenue or the cultivator or the receiver of rent-in-kind referred to in the said sub-clause (c) shall be computed as if it were income chargeable to income-tax under the said Act under the head "Income from house property" and the provisions of sections 21 to 25 of the said Act shall, so far as may be, apply accordingly.

Rule 4.—Irrespective of anything contained in any other provisions of these rules, in a case—

\t(a)\t   where the assessee derives income from sale of tea grown and manufactured by him in India, such income shall be computed as per rules notified for the purposes of the said Act, and 60% of such income shall be regarded as the agricultural income of the assessee;
\t(b)\t   where the assessee derives income from sale of centrifuged latex or cenex or latex based crepes (such as pale latex crepe) or brown crepes (such as estate brown crepe, re-milled crepe, smoked blanket crepe or flat bark crepe) or technically specified block rubbers manufactured or processed by him from rubber plants grown by him in India, such income shall be computed as per rules notified for the purposes of the said Act, and 65% of such income shall be regarded as the agricultural income of the assessee;
\t(c)\t   where the assessee derives income from sale of coffee grown and manufactured by him in India, such income shall be computed as per rules notified for the purposes of the said Act, and 60% or 75%, as the case may be, of such income shall be regarded as the agricultural income of the assessee.

Rule 5.—Where the assessee is a member of an association of persons or a body of individuals (other than a Hindu undivided family, a company or a firm) which in the tax year has either no income chargeable to tax under the said Act or has total income not exceeding the maximum amount not chargeable to tax in the case of an association of persons or a body of individuals (other than a Hindu undivided family, a company or a firm) but has any agricultural income then, the agricultural income or loss of the association or body shall be computed in accordance with these rules and the share of the assessee in the agricultural income or loss so computed shall be regarded as the agricultural income or loss of the assessee.

Rule 6.—(1) Where the result of the computation for the tax year in respect of any source of agricultural income is a loss, such loss shall be set off against the income of the assessee, if any, for that tax year from any other source of agricultural income.

(2) Irrespective of anything contained in sub-rule (1), where the assessee is a member of an association of persons or a body of individuals and the share of the assessee in the agricultural income of the association or body, as the case may be, is a loss, such loss shall not be set off against any income of the assessee from any other source of agricultural income.

Rule 7.—Any sum payable by the assessee on account of any tax levied by the State Government on the agricultural income shall be deducted in computing the agricultural income.

Rule 8.—(1) Where the assessee has, in the tax year commencing on the 1st April, 2026, or, if by virtue of any provision of the said Act, income-tax is to be charged in respect of the income of a period other than the tax year, in such other period, any agricultural income and the net result of the computation of the agricultural income of the assessee for any one or more of the tax years commencing on the 1st April, 2018 or the 1st April, 2019 or the 1st April, 2020 or the 1st April, 2021 or the 1st April, 2022 or the 1st April, 2023 or the 1st April, 2024, or the 1st April, 2025, is a loss, then, for the purposes of section 2(2) or (10) of this Act,—

\t(i)\t   the loss so computed for the tax year commencing on the 1st April, 2018, to the extent, if any, such loss has not been set off against the agricultural income for the tax year commencing on the 1st April, 2019 or the 1st April, 2020 or the 1st April, 2021 or the 1st April, 2022 or the 1st April, 2023 or the 1st April, 2024, or the 1st April, 2025;
\t(ii)\t   the loss so computed for the tax year commencing on the 1st April, 2019, to the extent, if any, such loss has not been set off against the agricultural income for the tax year commencing on the 1st April, 2020 or the 1st April, 2021 or the 1st April, 2022 or the 1st April, 2023 or the 1st April, 2024, or the 1st April, 2025;
\t(iii)\t   the loss so computed for the tax year commencing on the 1st April, 2020, to the extent, if any, such loss has not been set off against the agricultural income for the tax year commencing on the 1st April, 2021 or the 1st April, 2022 or the 1st April, 2023 or the 1st April, 2024, or the 1st April, 2025;
\t(iv)\t   the loss so computed for the tax year commencing on the 1st April, 2021, to the extent, if any, such loss has not been set off against the agricultural income for the tax year commencing on the 1st April, 2022 or the 1st April, 2023 or the 1st April, 2024, or the 1st April, 2025;
\t(v)\t   the loss so computed for the tax year commencing on the 1st April, 2022, to the extent, if any, such loss has not been set off against the agricultural income for the tax year commencing on the 1st April, 2023 or the 1st April, 2024, or the 1st April, 2025;
\t(vi)\t   the loss so computed for the tax year commencing on the 1st April, 2023, to the extent, if any, such loss has not been set off against the agricultural income for the tax year commencing on the 1st April, 2024, or the 1st April, 2025;
\t(vii)\t   the loss so computed for the tax year commencing on the 1st April, 2024, to the extent, if any, such loss has not been set off against the agricultural income for the tax year commencing on the 1st April, 2025;
\t(viii)\t   the loss so computed for the tax year commencing on the 1st April, 2025,

shall be set off against the agricultural income of the assessee for the tax year commencing on the 1st April, 2026.

(2) Where any person deriving any agricultural income from any source has been succeeded in such capacity by another person, otherwise than by inheritance, nothing in sub-rule (1) shall entitle any person, other than the person incurring the loss, to have it set off under sub-rule (1).

(3) Irrespective of anything contained in this rule, no loss which has not been determined by the Assessing Officer under the provisions of these rules or the rules contained in the First Schedule to the Finance Act, 2018 (13 of 2018) or the First Schedule to the Finance (No. 2) Act, 2019 (23 of 2019) or the First Schedule to the Finance Act, 2020 (12 of 2020) or the First Schedule to the Finance Act, 2021 (13 of 2021) or the First Schedule to the Finance Act, 2022 (6 of 2022) or the First Schedule to the Finance Act, 2023 (8 of 2023) or the First Schedule to the Finance (No. 2) Act, 2024 (15 of 2024) or the First Schedule to the Finance Act, 2025 (7 of 2025) shall be set off under sub-rule (1).

Rule 9.—Where the net result of the computation made as per these rules is a loss, the loss so computed shall be ignored and the net agricultural income shall be deemed to be nil.

Rule 10.—The provisions of the said Act relating to procedure for assessment (including the provisions of section 516 relating to rounding off of income) shall, with the necessary modifications, apply in relation to the computation of the net agricultural income of the assessee as they apply in relation to the assessment of the total income.

Rule 11.—For the purposes of computing the net agricultural income of the assessee, the Assessing Officer shall have the same powers as he has under the said Act for the purposes of assessment of the total income.

Rule 12.—Where a reference is made in this Part to any tax year commencing on the 1st April, 2025 or to any earlier tax year, the same shall be construed as a reference to the corresponding previous year under the Income-tax Act, 1961 (43 of 1961) as provided in section 536(3) of the said Act.

\n" }, "dataType" : "string", "label" : "Section Description", "name" : "documentContent", "nestedContentFields" : [ ], "repeatable" : false }, { "contentFieldValue" : { "data" : "" }, "dataType" : "string", "label" : "Foot Note", "name" : "footnotes", "nestedContentFields" : [ ], "repeatable" : false }, { "contentFieldValue" : { "data" : "SCHEDULE", "value" : "SCHEDULE" }, "dataType" : "string", "inputControl" : "select", "label" : "Chapter Number", "name" : "chapterNumber", "nestedContentFields" : [ ], "repeatable" : false }, { "contentFieldValue" : { "data" : "SCHEDULE", "value" : "SCHEDULE" }, "dataType" : "string", "inputControl" : "select", "label" : "Chapter Title", "name" : "chapterTitle", "nestedContentFields" : [ ], "repeatable" : false }, { "contentFieldValue" : { "data" : "true" }, "dataType" : "boolean", "inputControl" : "checkbox", "label" : "Not Append Chapter keyword?", "name" : "chapterBoolean", "nestedContentFields" : [ ], "repeatable" : false }, { "contentFieldValue" : { "data" : "" }, "dataType" : "string", "inputControl" : "text", "label" : "Remarks", "name" : "sectionRemarks", "nestedContentFields" : [ ], "repeatable" : false } ], "contentStructureId" : 35412, "creator" : { "additionalName" : "", "contentType" : "UserAccount", "familyName" : "Taxmann", "givenName" : "Mukesh", "id" : 11812954, "name" : "Mukesh Taxmann" }, "customFields" : [ ], "dateCreated" : "2026-04-22T11:27:31Z", "dateModified" : "2026-07-04T10:52:39Z", "datePublished" : "2026-04-22T11:27:00Z", "description" : "", "externalReferenceCode" : "8c5021bf-8305-4911-7c2a-36568a9b360e", "friendlyUrlPath" : "first-schedule-104", "id" : 17328918, "key" : "17328916", "keywords" : [ ], "neverExpire" : true, "numberOfComments" : 0, "priority" : 162.0, "relatedContents" : [ ], "renderedContents" : [ { "contentTemplateId" : "2377298", "contentTemplateName" : "Sections Details Page Template", "markedAsDefault" : false, "renderedContentURL" : "https://www.incometaxindia.gov.in/o/headless-delivery/v1.0/structured-contents/17328918/rendered-content/2377298" }, { "contentTemplateId" : "12474690", "contentTemplateName" : "Sections Automation Test Template", "markedAsDefault" : false, "renderedContentURL" : "https://www.incometaxindia.gov.in/o/headless-delivery/v1.0/structured-contents/17328918/rendered-content/12474690" }, { "contentTemplateId" : "SECTIONS_PARALLEL_VIEW_TEMPLATE", "contentTemplateName" : "SECTIONS_PARALLEL_VIEW_TEMPLATE", "markedAsDefault" : true, "renderedContentURL" : "https://www.incometaxindia.gov.in/o/headless-delivery/v1.0/structured-contents/17328918/rendered-content/SECTIONS_PARALLEL_VIEW_TEMPLATE" }, { "contentTemplateId" : "sections-display-page", "contentTemplateName" : "Sections Display Page", "markedAsDefault" : true, "renderedContentURL" : "https://www.incometaxindia.gov.in/o/headless-delivery/v1.0/structured-contents/17328918/rendered-content-by-display-page/sections-display-page" }, { "contentTemplateId" : "sections-display-page-(copy)", "contentTemplateName" : "Sections Display Page (Copy)", "markedAsDefault" : false, "renderedContentURL" : "https://www.incometaxindia.gov.in/o/headless-delivery/v1.0/structured-contents/17328918/rendered-content-by-display-page/sections-display-page-(copy)" } ], "siteId" : 20117, "structuredContentFolderId" : 16978276, "subscribed" : false, "taxonomyCategoryBriefs" : [ { "taxonomyCategoryId" : 4209071, "taxonomyCategoryName" : "Finance Acts", "taxonomyCategoryReference" : { "externalReferenceCode" : "67ceded9-13f8-c736-0ef7-50a088ec850c", "siteKey" : "Guest" } }, { "taxonomyCategoryId" : 13590315, "taxonomyCategoryName" : "2026", "taxonomyCategoryReference" : { "externalReferenceCode" : "d18b2fe1-a17a-0ac0-faa6-746a4b53a387", "siteKey" : "Guest" } } ], "title" : "First Schedule", "uuid" : "8c5021bf-8305-4911-7c2a-36568a9b360e" }