Every year taxpayers need to make a note of changes announced in the budget that reflect in the income tax e-filing forms. Many filing details remain unchanged, whereas there may be changes in a few. The income tax slab rate specifies the yearly threshold limits at which a higher and a lower tax rate is applicable.
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The budget for the Financial Year 2022- 2023 was announced by Finance Minister Nirmala Sitharaman on 1st February 2022. The high hopes of salaried employees were left unanswered as there were no changes announced in the income tax slab rate for the Financial Year 2022 – 2023 and Assessment Year 2023 – 2024.
As mentioned above, the income tax slab rate for Financial Year 2022 – 2023 is the same as that for Financial Year 2021 – 2022. Here are a few highlights of the Income Tax Slab 2022 - 23.
There is no change in the current tax slab.
Taxpayers continue paying taxes following the previous year’s tax regime.
Either the Old or the New tax regime can be followed for the payment of tax.
Tax rebate of up to Rs. 12,500 is offered under Section 87A of the Income Tax Act, 1961.
Individual earning up to Rs. 5,00,000 does not fall under the tax-paying category, irrespective of the tax regime followed.
Once opted for a new tax regime, a taxpayer having income under the head Profits and Gains from Business and Profession will have to continue under the new regime for a lifetime. Other taxpayers can opt for the old or new regime every year.
Health and Education Cess of 4% is applicable on the tax amount for all taxpayers.
Taxpayers are divided into 4 categories and 1 for domestic companies when it comes to paying taxes according to the income tax slab. Let us take a look at these categories:
Individuals less than 60 years old and Hindu Undivided Family (HUF) (including AOP, BOI, and Artificial Juridical Person)
A senior citizen with an age limit of 60 years and above but less than 80 years old.
A senior citizen who is 80 or above 80 years old.
Hindu Undivided Family (HUF) (including AOP, BOI, and Artificial Juridical Person)
Domestic companies
Net Income Range | Rate of Income-tax | |
Assessment Year 2023-24 | Assessment Year 2022-23 | |
Up to Rs. 2,50,000 | - | - |
Rs. 2,50,000 to Rs. 5,00,000 | 5% | 5% |
Rs. 5,00,000 to Rs. 10,00,000 | 20% | 20% |
Above Rs. 10,00,000 | 30% | 30% |
Net Income Range | Rate of Income-tax | |
Assessment Year 2023-24 | Assessment Year 2022-23 | |
Up to Rs. 3,00,000 | - | - |
Rs. 3,00,000 to Rs. 5,00,000 | 5% | 5% |
Rs. 5,00,000 to Rs. 10,00,000 | 20% | 20% |
Above Rs. 10,00,000 | 30% | 30% |
Net Income Range | Rate of Income-tax | |
Assessment Year 2023-24 | Assessment Year 2022-23 | |
Up to Rs. 5,00,000 | - | - |
Rs. 5,00,000 to Rs. 10,00,000 | 20% | 20% |
Above Rs. 10,00,000 | 30% | 30% |
Net Income Range | Rate of Income-tax | |
Assessment Year 2023-24 | Assessment Year 2022-23 | |
Up to Rs. 2,50,000 | - | - |
Rs. 2,50,000 to Rs. 5,00,000 | 5% | 5% |
Rs. 5,00,000 to Rs. 10,00,000 | 20% | 20% |
Above Rs. 10,00,000 | 30% | 30% |
The cess and surcharge on income tax payable are applicable if the total income of the assessee exceeds the below-mentioned limits:
Surcharge Rate | ||
Range of Income | Assessment Year 2023-24 | Assessment Year 2022-23 |
Above Rs. 50 Lakhs but less than Rs. 1 Crore | 10% | 10% |
Above Rs. 1 Crore but less than Rs. 2 Crores | 15% | 15% |
Above Rs. 2 Crores but less than Rs. 5 Crores | 25% | 25% |
Above Rs. 5 crores but less than Rs. 10 Crores | 37% | 37% |
Above Rs. 10 Crores | 37% | 37% |
The income tax slab under the old and the new regime remains the same for income up to Rs. 5,00,000.
Here is the table with the new tax rates on the annual income:
Old Tax Rate(%) | Annual Income (Rs.) | New Tax Rate (%) |
Nil | Up to Rs. 2L | Nil |
5 | 2.5 L to Rs. 5L | 5 |
20 | Rs. 5L to Rs. 7.5L | 10 |
20 | Rs. 7.5L to Rs. 10L | 15 |
30 | Rs. 10L to Rs. 12.5L | 20 |
30 | Rs. 12.5L to Rs. 15L | 25 |
30 | Rs. 15L and above | 30 |
An income tax is a tax the government imposes on the income earned by individuals and businesses. One must file an income tax return to justify their income. In this regard, to avail tax advantages to their fullest, it is crucial to understand the existing income tax slab for the fiscal year 2021-2022.
Annual Income | Old Regime Tax Rates | New Regime Tax Rates | Health and Education Cess |
Up to Rs.2.5 lakh | Nil | Nil | Nil |
Rs.2,50,001-Rs.5 Lakh | 5% | 5% | 4% of Income Tax |
Rs.5,00,001-Rs.750000 | 20% | 10% | 4% of Income Tax |
Rs.7,50,001-Rs.1000000 | 20% | 15% | 4% of Income Tax |
Rs.10,00,001-Rs.1250000 | 30% | 20% | 4% of Income Tax |
Rs.12,50,001-Rs.1500000 | 30% | 25% | 4% of Income Tax |
Above Rs.1500000 | 30% | 30% | 4% of Income Tax |
10% surcharge is applicable in case the income of an individual is more than Rs. 50,00,000 and less than Rs. 1,00,00,000.
15% Surcharge is applicable in case the income of an individual is more than Rs. 1,00,00,000 and less than Rs. 2,00,00,000.
25% Surcharge is applicable in case the income of an individual is more than Rs. 2,00,00,000 and less than Rs. 5,00,00,000.
37% Surcharge is applicable in case the income of an individual is more than Rs. 5,00,00,000.
From budget 2019, the tax rebate of Rs. 12,500 under Section 87A of the IT Act 1961 is available to individuals with a yearly income of up to Rs.5 lakhs.
A Health and education cess of 4% is applicable on the amount of tax calculated, inclusive of the surcharge.
Annual Income | Old Regime Tax Rates | New Regime Tax Rates | Health and Education Cess |
Up to Rs.3 lakh | Nil | Nil | Nil |
Rs.3,50,001-Rs.5 Lakh | 5% | 5% | 4% of Income Tax |
Rs.5,00,001-Rs.750000 | 20% | 10% | 4% of Income Tax |
Rs.7,50,001-Rs.1000000 | 20% | 15% | 4% of Income Tax |
Rs.10,00,001-Rs.1250000 | 30% | 20% | 4% of Income Tax |
Rs.12,50,001-Rs.1500000 | 30% | 25% | 4% of Income Tax |
Above Rs.1500000 | 30% | 30% | 4% of Income Tax |
10% surcharge is applicable in case the income of an individual is more than Rs. 50,00,000 and less than Rs. 1,00,00,000.
15% Surcharge is applicable in case the income of an individual is more than Rs. 1,00,00,000 and less than Rs. 2,00,00,000.
25% Surcharge is applicable in case the income of an individual is more than Rs. 2,00,00,000 and less than Rs. 5,00,00,000.
37% Surcharge is applicable in case the income of an individual is more than Rs. 5,00,00,000.
A Health and education cess of 4% is applicable on the amount of tax calculated, inclusive of the surcharge.
Annual Income | Old Regime Tax Rates | New Regime Tax Rates | Health and Education Cess |
Up to Rs.5 lakh | Nil | Nil | Nil |
Rs.5,00,001-Rs.750000 | 20% | 10% | 4% of Income Tax |
Rs.7,50,001-Rs.1000000 | 20% | 15% | 4% of Income Tax |
Rs.10,00,001-Rs.1250000 | 30% | 20% | 4% of Income Tax |
Rs.12,50,001-Rs.1500000 | 30% | 25% | 4% of Income Tax |
Above Rs.1500000 | 30% | 30% | 4% of Income Tax |
10% surcharge is applicable in case the income of an individual is more than Rs. 50,00,000 and less than Rs. 1,00,00,000.
15% Surcharge is applicable in case the income of an individual is more than Rs. 1,00,00,000 and less than Rs. 2,00,00,000.
25% Surcharge is applicable in case the income of an individual is more than Rs. 2,00,00,000 and less than Rs. 5,00,00,000.
37% Surcharge is applicable in case the income of an individual is more than Rs. 5,00,00,000.
A Health and education cess of 4% is applicable on the amount of tax calculated, inclusive of the surcharge.
Turnover Particulars | Tax Rates |
In case the gross turnover is up to Rs.400 Crore in the financial year 2017-18 | 25% |
In case the gross turnover is exceeding Rs.400 Crore in the financial year 2017-18 | 30% |
Where the Company opted for Section 115BA | 25% |
Where the Company opted for Section 115BAA | 22% |
Where the Company opted for Section 115BAB | 15% |
Surcharge: If the taxable income is more than Rs.1 crore but less than Rs.10 crore, a surcharge of 7% of income tax is applicable.
Surcharge: If the taxable income is more than Rs.10 crore, then a surcharge of 12% of income tax is applicable.
Surcharge:- If Company opts for taxability u/s 115BAA or Section 115BAB, then a surcharge of 10% of income tax is applicable.
30% tax rate is applicable for any partnership firms & limited liability partnership (LLP).
The surcharge is applicable if the taxable income is more than Rs.1 crore, then a surcharge of 12% of income tax is applicable.
A Health and education cess of 4% is applicable on the amount of tax calculated, inclusive of the surcharge.
30% tax rate is applicable for local authorities.
A surcharge is applicable if the taxable income is more than Rs.1 crore, then a surcharge of 12% of income tax is applicable.
A Health and education cess of 4% is applicable on the amount of tax calculated, inclusive of the surcharge.
Nature of Income | Tax Rate |
If any foreign company/entity functioning in India receives income as royalty compensated by the Indian government against the agreement implemented with the Indian concern (After 31st March 1961, and before 1St April 1976) | 50% |
If any foreign company/entity functioning in India receives income as fees for any technical service provided according to the agreement implemented with the Indian concern (After 29th February 1964 and before 1St April 1976) | 50% |
Any other additional income earned by a foreign company operating in India. | 40% |
2% surcharge is applicable in case the income is between Rs. 1 crore - Rs. 10 crore.
5% surcharge is applicable if the income exceeds Rs. 10 crores.
Rural/Urban/Semi-Urban excluding Agricultural Societies and Self Help Group (SHG)
Income Threshold | Applicable Tax Rate |
Up to Rs. 10,000 | 10% |
Rs. 10,001- Rs. 20,000 | 20% |
Over Rs. 20,001 | 30% |
From the FY 2021-22, the dividend income received is to be added to the total income in the hands of the assessee. The tax rates applicable will be the normal tax rates at which the income of the assessee is charged.
For the financial year 2021-22, the income tax slab rates are the following:
Annual Income | Old Regime Tax Rates | New Regime Tax Rates | Health and Education Cess |
Up to Rs.2.5 lakh | Nil | Nil | Nil |
Rs.2,50,001-Rs.5 Lakh | 5% | 5% | 4% of Income Tax |
Rs.5,00,001-Rs.750000 | 20% | 10% | 4% of Income Tax |
Rs.7,50,001-Rs.1000000 | 20% | 15% | 4% of Income Tax |
Rs.10,00,001-Rs.1250000 | 30% | 20% | 4% of Income Tax |
Rs.12,50,001-Rs.1500000 | 30% | 25% | 4% of Income Tax |
Above Rs.1500000 | 30% | 30% | 4% of Income Tax |
A Health and education cess of 4% is applicable on the amount of tax calculated, inclusive of the surcharge.
For the financial year 2022-23, the income tax slab rates are the following:
Annual Income | Old Regime Tax Rates | New Regime Tax Rates | Health and Education Cess |
Up to Rs.2.5 lakh | Nil | Nil | Nil |
Rs.2,50,001-Rs.5 Lakh | 5% | 5% | 4% of Income Tax |
Rs.5,00,001-Rs.750000 | 20% | 10% | 4% of Income Tax |
Rs.7,50,001-Rs.1000000 | 20% | 15% | 4% of Income Tax |
Rs.10,00,001-Rs.1250000 | 30% | 20% | 4% of Income Tax |
Rs.12,50,001-Rs.1500000 | 30% | 25% | 4% of Income Tax |
Above Rs.1500000 | 30% | 30% | 4% of Income Tax |
For the financial year 2022-23, the income tax slab rates are the following:
Annual Income | Old Regime Tax Rates | New Regime Tax Rates | Health and Education Cess |
Up to Rs.2.5 lakh | Nil | Nil | Nil |
Rs.2,50,001-Rs.5 Lakh | 5% | 5% | 4% of Income Tax |
Rs.5,00,001-Rs.750000 | 20% | 10% | 4% of Income Tax |
Rs.7,50,001-Rs.1000000 | 20% | 15% | 4% of Income Tax |
Rs.10,00,001-Rs.1250000 | 30% | 20% | 4% of Income Tax |
Rs.12,50,001-Rs.1500000 | 30% | 25% | 4% of Income Tax |
Above Rs.1500000 | 30% | 30% | 4% of Income Tax |
10% surcharge is applicable in case the income of an individual is more than Rs. 50,00,000 and less than Rs. 1,00,00,000.
15% Surcharge is applicable in case the income of an individual is more than Rs. 1,00,00,000 and less than Rs. 2,00,00,000.
25% Surcharge is applicable in case the income of an individual is more than Rs. 2,00,00,000 and less than Rs. 5,00,00,000.
37% Surcharge is applicable in case the income of an individual is more than Rs. 5,00,00,000.
A Health and education cess of 4% is applicable on the amount of tax calculated, inclusive of the surcharge.
For the financial year 2022-23, the income tax slab rates are the following:
Annual Income | Old Regime Tax Rates | New Regime Tax Rates | Health and Education Cess |
Up to Rs.2.5 lakh | Nil | Nil | Nil |
Rs.2,50,001-Rs.5 Lakh | 5% | 5% | 4% of Income Tax |
Rs.5,00,001-Rs.750000 | 20% | 10% | 4% of Income Tax |
Rs.7,50,001-Rs.1000000 | 20% | 15% | 4% of Income Tax |
Rs.10,00,001-Rs.1250000 | 30% | 20% | 4% of Income Tax |
Rs.12,50,001-Rs.1500000 | 30% | 25% | 4% of Income Tax |
Above Rs.1500000 | 30% | 30% | 4% of Income Tax |
10% surcharge is applicable in case the income of an individual is more than Rs. 50,00,000 and less than Rs. 1,00,00,000.
15% Surcharge is applicable in case the income of an individual is more than Rs. 1,00,00,000 and less than Rs. 2,00,00,000.
25% Surcharge is applicable in case the income of an individual is more than Rs. 2,00,00,000 and less than Rs. 5,00,00,000.
37% Surcharge is applicable in case the income of an individual is more than Rs. 5,00,00,000.
A Health and education cess of 4% is applicable on the amount of tax calculated, inclusive of the surcharge.
Income Tax Act 1961 consists of the provisions of income tax which is applicable uniformly to the whole of India and is effective since 1962. The Income Tax Act contains different provisions to determine tax liability, taxable income, current tax slab rate, a procedure for assessment of penalties, etc.
Resident status of the assessee
Income of assessee
Rate of tax
Assessment year
Gross income
Charge of Income Tax
A Hindu Undivided Family (HUF)
Any salaried individual.
A firm
A company
Any local authority
A body of individuals (BOI)or an association of persons, whether incorporated or not.
Some changes were introduced to the income tax slab announced in the interim budget 2019. Tax rebate under Section 87A of Rs. 12,500 was announced for individual assessees with income up to Rs. 5,00,000.
The income tax rates are first categorized across age groups and then cross-categorized across age group income to generate income tax slab rates. The following paragraphs discuss the income tax rates for the age/income slab matrix.
The Income Tax slab rate helps you decide whether your income is taxable or not. The finance minister has introduced many changes in the current tax slab rate for the financial year 2019-2020 (AY 2020-2021). These are:
No tax is applicable for individuals whose income is less than Rs. 2,50,000
0%-5% tax is applicable for the different age groups with income from Rs. 2,50,000 - Rs. 5,00,000.
20% tax is applicable with income from Rs. 5,00,000 - Rs. 10,00,000.
30% tax is applicable with income above Rs.10,00,000.
Investments up to a maximum of Rs. 1.5 lakh can be claimed as a deduction under section 80C of the Income Tax Act and can save up to Rs. 46,800 in taxes.
Based on the annual income earned by an individual, the following table shows different income tax slab rates applicable in India. The category and profile of the taxpayers have arranged the tax slabs.
Annual Income | Tax Rates | Health and Education Cess |
Up to Rs.2.5 lakh | Nil | Nil |
Rs.2,50,001-Rs.5 Lakh | 5% | 3% of Income Tax |
Rs.5,00,001-Rs.10 Lakh | 20% | 3% of Income Tax |
Above Rs.10 Lakh | 30% | 3% of Income Tax |
Additional Component
Individuals can make investments and save up to Rs. 46,800 on taxes.
Surcharge:
10% surcharge is applicable in case the income of an individual is more than Rs. 50,00,000 and less than Rs. 1,00,00,000.
15% Surcharge is applicable in case the income of an individual is more than Rs. 1,00,00,000.
Health and Education Cess:
A Health and education cess of 4% is applicable on the amount of tax calculated, inclusive of the surcharge.
Annual Income | Tax Rates | Health and Education Cess |
Up to Rs.3 lakh | Nil | Nil |
Rs.3,00,001-Rs.5 Lakh | 5% | 3% of Income Tax |
Rs.5,00,001-Rs.10 Lakh | 20% | 3% of Income Tax |
Above Rs.10 Lakh | 30% | 3% of Income Tax |
Additional Component
Individuals can make investments and save up to Rs. 46,800 on taxes.
10% surcharge is applicable in case the income of an individual is more than Rs. 50,00,000 and less than Rs. 1,00,00,000.
15% Surcharge is applicable in case the income of an individual is more than Rs. 1,00,00,000.
Annual Income | Income Tax Rates |
Up to Rs.5 lakh | Nil |
Rs.5,00,001-Rs.10 Lakh | 20% |
Above Rs.10 Lakh | 30% |
Additional Component
Individuals can make investments and save up to Rs. 46,800 on taxes.
10% surcharge is applicable in case the income of an individual is more than Rs. 50,00,000 and less than Rs. 1,00,00,000.
15% Surcharge is applicable in case the income of an individual is more than Rs. 1,00,00,000.
Turnover Particulars | Income Tax Rates |
In case the gross turnover in the preceding year is less than or up to Rs. 50 crore | 25% |
In case the gross turnover in the preceding year is more than Rs. 50 crore | 30% |
Additional Rates which are Applicable:
Cess: 3% of corporate tax
Surcharge: If the taxable income is more than Rs.1 crore but less than Rs.10 crore, then a surcharge of 7% of income tax is applicable.
Surcharge: If the taxable income is more than Rs.10 crores, then a surcharge of 12% of income tax is applicable.
Income Tax Slab for HUF and individuals less than 60 years of age.
Income Range Per Annum | Tax Rate FY 2019-20, AY 2020-21 | Tax Rate FY 2018-19, AY 19-20 |
Up to 2.5 lakhs | No tax | No tax |
Rs. 2,50,000- Rs.5,00,000 | 5% + 4% cess | 5%+4% cess |
Rs.5,00,000-Rs. 10,00,000 | 20% +4% cess | 20% + 4% cess |
Rs.10,00,000-Rs.50,00,000 | 30%+ 4% cess | 30%+4% cess |
Rs.50,00,000- Rs.1,00,00,000 | 30%+10% surcharge+4%cess | 30%+10% surcharge+4%cess |
Above Rs.1,00,00,000 | 30%+15% surcharge+4%cess | 30%+15% surcharge+4%cess |
Tax rebate U/S 87(A) | 100% tax rebate ( Subject to a maximum of Rs.12,500) is applicable to the resident individuals whose total taxable income does not exceed Rs.5 lakh | 100% tax rebate ( Subject to a maximum of Rs. 2,500) is applicable to the resident individuals whose total taxable income does not exceed Rs.3.5 lakh |
For the financial year 2019-2020 and assessment year 2020-2021, the income tax slab has remained unchanged for all citizens (including senior citizens).
The education cess of 4% on income tax is the same as the previous year.
The standard deduction for salaried individuals has increased from Rs. 40,000 to Rs. 50,000.
No changes have been made to the corporate tax. The corporate tax applicable is 25% for domestic companies whose turnover is up to Rs. 250 crores.
10% tax on long-term capital gain exceeding Rs 1 Lakh.
Short-term capital gains to continue to be taxed at 15%
Zero TDS on interest earned from FDs up to Rs 50,000
Tax exemption on interest from FD, Post Office up to RS 50,000 as per the Section 80TTB
Premium paid for senior citizen medical insurance is exempted up to Rs. 50,000
As per Section 80DDB, tax exemption for certain critical illnesses is up to Rs. 60,000 in the case of senior citizens, up to Rs. 80,000 in the case of super senior citizens, and Rs. 1 Lakh in the case of all senior citizens.