Under the Income Tax Act, 1961 specific slab rates are provided, on the basis of which tax is levied on the taxpayers. Different slab rates are applicable to different ranges of income as well as different types of taxpayers. These slab rates are often revised in the budget by the finance minister. However, there was no major change in the slab rates for the financial year 2022-23. Hence the slab rates for F.Y. 2022-23 are the same as those for F.Y 2021-22, except for a few minor changes.
Income Tax Slab Rates for Individuals and HUF – New Tax Regime
The Finance Act 2020 proposed these new Tax Slab rates for all individuals and HUFs, which are optional in nature. The individuals can either choose this new slab rate provided they comply with the necessary conditions, or opt for the existing slab rate. This new slab is as follows:
|
Total Income (Rs) |
Slab Rates |
|
Upto Rs 2.5 lakhs |
nil |
|
From Rs 2.5 lakhs to Rs 5 lakhs |
5% |
|
From Rs 5 lakhs to Rs 7.5 lakhs |
10% |
|
From Rs 7.5 lakhs to Rs 10 lakhs |
15% |
|
From Rs 10 lakhs to Rs 12.5 lakhs |
20% |
|
From Rs 12.5 lakhs to Rs 15 lakhs |
25% |
|
Above Rs 15 lakhs |
30% |
Some important points to note:
The slab rates given above are applicable to all individuals irrespective of their age
Individuals (Resident) with total taxable income of upto Rs 5 lakhs are eligible for tax rebate u/s 87A. The maximum amount of rebate available to an individual is Rs 12500.
Additional health and educational cess will be charged at the rate of 4%
Surcharge rates applicable to the individuals and HUFs are as follows:
- 10% of the income tax – if total taxable income is more than Rs 50 lakhs and up to Rs 1 crore
- 15% of the income tax – if total taxable income is more than Rs 1 crore and up to Rs 2 crores
- 25% of the income tax – if total taxable income is more than Rs 2 crores and up to Rs 5 crores
- 37% of the income tax – if total taxable income is more than Rs 5 crores
Income Tax Slab Rates for Individuals (Resident and Non Resident), HUF, AOP, BOI, Artificial Judicial Person – Old Tax Regime
The existing income tax slab rate is as follows:
|
Total Income (Rs) |
Slab rates for individuals below the age of 60 years |
|
Upto Rs 2.5 lakhs |
nil |
|
From Rs 2.5 lakhs to Rs 5 lakhs |
5% |
|
From Rs 5 lakhs to Rs 10 lakhs |
20% |
|
Above Rs 10 lakhs |
30% |
|
Total Income (Rs) |
Slab rates for individuals between the age of 60-80 years (Senior citizens) |
|
Upto Rs 3 lakhs |
nil |
|
From Rs 3 lakhs to Rs 5 lakhs |
5% |
|
From Rs 5 lakhs to Rs 10 lakhs |
20% |
|
Above Rs 10 lakhs |
30% |
|
Total Income (Rs) |
Slab rates for individuals above the age of 80 years (Super Senior citizens) |
|
Upto Rs 5 lakhs |
nil |
|
From Rs 5 lakhs to Rs 10 lakhs |
20% |
|
Above Rs 10 lakhs |
30% |
Some important points to note:
1.Individuals (Only Residents) with total taxable income of upto Rs 5 lakhs are eligible for tax rebate u/s 87A. The maximum amount of rebate available to an individual is Rs 12500.
2.Additional health and educational cess will be charged at the rate of 4%
3.Surcharge rates applicable to the individuals and HUFs are as follows:
- 10% of the income tax – if total taxable income is more than Rs 50 lakhs and up to Rs 1 crore
- 15% of the income tax – if total taxable income is more than Rs 1 crore and up to Rs 2 crores
- 25% of the income tax – if total taxable income is more than Rs 2 crores and up to Rs 5 crores
- 37% of the income tax – if total taxable income is more than Rs 5 crores
Income Tax Slab Rates for Taxpayers Other Than Individuals and HUFs for F.Y. 2022-23 (A.Y. 2023-24)
The slab rates for Domestic Companies are as follows:
|
Particulars |
Rate |
|
Total turnover or gross receipt does not exceed Rs 400 crore during the previous year 2020-21 |
25% |
|
Any other Domestic Company |
30% |
|
Company opted for Section 115BAB |
15% |
|
Company opted for Section 115BA |
25% |
|
Company opted for Section 115BAA |
22% |
Foreign Companies:
|
Income |
Rate |
|
50% |
|
Any other income |
40% |
Some important points to note:
Additional health and educational cess will be charged at the rate of 4%.
Surcharge rates applicable to the domestic companies are as follows:
- 7% of the income tax – if total taxable income is more than Rs 1 crore and up to Rs 10 crores
- 12% of the income tax – if total taxable income is more than Rs 10 crore
- 10% of the income tax – if the domestic company opted for Section 115BAA and 115BAB.
Surcharge rates applicable to the foreign companies are as follows:
- 2% of the income tax – if total taxable income is more than Rs 1 crore and up to Rs 10 crores
- 5% of the income tax – if total taxable income is more than Rs 10 crores
Cooperative Society:
|
Income |
Rate |
|
Upto Rs 10000 |
10% |
|
From Rs 10000 to Rs 20000 |
20% |
|
Above Rs 20000 |
30% |
Other entities
The tax rate for partnership firm and LLP and local authority is same as 30%.
For partnership firms, LLP and local authorities, the surcharge shall be applicable at the rate of 12% if the total taxable income is more than Rs 1 crore and health and education cess will be charged at the rate of 4%.
