Know about the income tax slabs 2022-23 in india

Know about the income tax slabs FY 2022-23 | FY 2021-22

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There is no change in income tax slabs for the Financial Year 2022-23; Assessment year 2023-2034.

Income Tax is charged on the persons as per the income(s) earned by them during the relevant financial year. The rate of tax payment is decided by the Government. Further, this amount is divided into various income tax slabs/rates. These rates are, however, amended by Government from time to time. 

Choice between the new & old income tax slabs

The choice between the new and old tax regimes’ income tax slabs can be done by an assessee, at any time before the filing of the Income Tax Return. Further, even if a salaried employee has made a declaration to his employee that he will opt for New Tax Regime during the relevant year, then also he can switch to the old tax regime. This, however, has to be done at any time before the filing of the Income Tax Return.

Also Read: Do I need to file Income Tax Return?

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New Tax Regime & Income Tax Slabs

Through Budget, 2020, Finance Minister Ms Nirmala Sitharaman announced a new tax regime at lower income tax slab rates. This New Tax Regime can be opted only by the Individuals and Hindu Undivided Families (HUFs). Therefore, the firms, companies, Association of Persons, etc cannot opt for New Tax Regime. 

Further, if the individuals/HUFs opt for this scheme, then they will have to forego the majority of the deductions and exemptions available under the old tax regime.

In addition to this, the new tax regime does not differentiate individuals based on age group. In other words, the income tax slab rate is the same for all individuals falling under the relevant income tax slab. 

The individuals, however, have to choose either of the following:
– To pay income tax at lower rates as per the new tax regime and forgo the majority of the deductions and exemptions, or
– To continue to pay taxes at a higher rate under the old tax regime and avail of the deductions and exemptions.

Also Read: Which Tax Regime Suits You: Old V. New?

income tax rates under new tax regime

The income tax slabs for paying taxes under the new tax regime are as follows:

New Tax Regime Income tax rates

Old Tax Regime

The old tax regime has been classified individuals into three categories:
– Firstly, individuals (aged less than 60 years) including residents and non-residents
– Secondly, resident senior citizens (aged between 60 to 80 years)
– Thirdly, resident super senior citizens (aged more than 80 years)

Also Read: Things You Should Do To Save Your Taxes

Income Tax Slabs under Old Tax Regime:

The income tax slab rates under the old tax regime are as follows:

Income tax rates under Old tax regime
Surcharge Rate under the Old & New Tax Regime

Although, the income tax slab rates under the new and old tax regimes are different, the surcharge rates are same, which is as follows:

Surcharge rates under the old & new tax regime

Current Tax Slab under Old & New Tax Regime

For your better understanding, the conclusion of income tax slabs under the new and old tax regimes is as follows:

Income tax slabs

Please note that under both of the income tax regimes,
– The higher income is, the higher income tax slabs rates will be.
– Rebate under section 87A is available to resident individuals whose total income during the previous year does not exceed Rs. 5,00,000.  Rebate is available to the extent of Rs. 12,500 only and no rebate will be available if total income exceeds Rs. 5,00,000.

Income Tax Slabs for Companies

The income tax slabs for companies are divided into three parts:
– Firstly, domestic companies opting for Section 115BAB
– Secondly, other domestic companies
– Thirdly, foreign companies

Domestic Companies Slab rates

Particulars Section Basic Tax Rate Surcharge MAT
Domestic company engaged in manufacturing / production Section 115BA 25% 7% / 12% 15%
All Domestic companies Section 115BAA 22% 10% N/A
Domestic company engaged in manufacturing/ production Section 115BAB 15% 10% N/A
Any Domestic company Others 25% / 30% 7% / 12% 15%

Foreign Companies: Slab rates

Condition Income Tax Rate
Royalty from Government or an Indian concern in pursuance of an agreement made with the Indian concern after 31st March 1961, but before 1st April 1976, or fees for rendering technical services in pursuance of an agreement made after 29th February 1964 but before 1st April 1976 and where such agreement has, in either case, been approved by the Central Government 50%
Any other case 40%

Tax rates applicable for cooperative societies

Just like the companies, for income tax, there are two classes of cooperative societies:
– Firstly, cooperative societies opting for Section 115BAD
– Secondly, other cooperative societies.

Current Slab rate for cooperative societies opting for Old Tax Regime

Income Tax Rates
Up to Rs. 10,000 10%
Rs. 10,001 – Rs. 20,000 20%
Above Rs. 20,000 30%

Slab rate for other cooperative societies opting for new tax regime

If a co-operative society opts for the new tax regime regime, the income shall be taxable at the rate of 22%.

Tax Rates for other entities

In addition to the above entities, the tax rates for other entities are as follows:

Net income range Income-tax Rates
Up to Rs. 2,50,000 Nil
Rs. 2,50,001- Rs. 5,00,000 5%
Rs. 5,00,001- Rs. 10,00,000 20%
Above Rs. 10,00,000 30%

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