Categories: Income tax

Income Tax slabs and tax rates for FY 2022-23 both under old and new rules

Updated on July 18, 2022

The tax slabs and tax rates for the financial year  2020-21, 2021-22, and 2022-2023  remain the same. The rules for the old tax regime and the new tax regime are also the same as in previous years.

The amount of rebate u/s 87A has been kept unchanged under both the old and new income tax regimes. Section 87A provides a tax rebate up to Rs 12500 to individual taxpayers if their total income is less than Rs 5 lakh after claiming deductions. NRIs, HUFs, Associations, and corporates are not eligible to claim an income tax rebate under Section 87A.

Old tax regime:

Salaried individuals, who have no business income, will have to choose between the existing and new tax regimes every financial year, as per their convenience. The same rule also applies to FY 2021-22 (AY 2022-23)  and FY 2022-23 (AY 2023-24) without any changes. The taxpayer who opted for the old rule will be entitled to deductions and relief such as Leave Travel Allowance (LTA), House Rent Allowance (HRA), Conveyance, Daily expenses in the course of employment, Relocation allowance, Helper allowance, Children’s education allowance, Other special allowances [Section 10(14)], Standard deduction, Professional tax, Interest on housing loan (Section 24), Chapter VI-A deduction (80C,80D, 80E,80EEA,80EEB,80 TTA, 80TTB, etc.). The above list of exemptions and deductions will have to be given up by the taxpayer while choosing the new tax regime.

New Tax regime:

The new income tax rates are lower compared to the old tax rate. However, anyone opting for the new tax regime will have to forego most of the deductions available under the old tax regime.

The tax slabs and tax rate under the OLD TAX REGIME  (For the people who opt for the old scheme).

Born after 01.04.1961

Income Slabs Tax & Surcharge
Income slab up to Rs.2.50 lakh Nil
Income from 2.5 lakh to 5 lakh 5%+Cess of 4% on tax liability ([Eligible for interest rebate up to Rs.12500 u/s 87A for taxable income does not exceed Rs 5lakh
Income above 5 lakh to Rs.10 lakh Rs.12,500+20%  on above 5 lakh up to Rs.10 lakh+(Cess of 4% on tax liability)
Income of more than 10 lakh Rs.1,12,500+ 30% on  above10 lakh +(Cess of 4% on tax liability)
Income from 50 lakh to Rs.1 crore 13,12,500 + 30% on 50 lakh up to 1 crore+(Cess of 4% on tax liability and 10% surcharge)
Income from Rs.1 crore and above 28,12,500 +30% on above 1 crore+ (Cess of 4% on tax liability and 15% surcharge)

Senior Citizen Born on before 31.03.1961

Income Slabs Tax
Taxable Income up to Rs.3 lakh Nil.
Income from 3 lakh to 5 lakh 5% + Cess of 4% on tax liability [Eligible for interest rebate up to Rs.10000 u/s 87A for taxable income of below Rs5lakh]
Income from 5 lakh to Rs.10 lakh Rs.10,000+20%  on 5 lakh up to Rs.10 lakh+(Cess of 4% on tax liability)
Income from 10 lakh to Rs.50 lakh Rs.1,10,000+ 30% on 10 lakh up to Rs.50 lakh+ (Cess of 4% on tax liability)
Income from 50 lakh to Rs.1 crore 13,10,000 + 30% on 50 lakh up to 1 crore+ (Cess of 4% on tax liability and 10% surcharge)r
Income from Rs.1 crore and above 28,10,000 +30% on above 1 crore+(Cess of 4% on tax liability and 15% surcharge)

Super Senior Citizen (Born on before 31.03.1941)

Income Slabs Tax + Surcharge
Income slab up to Rs.5 lakh Nil
Income from 5 lakh to Rs.10 lakh 20%+ (Cess of 4% on tax liability)
Income from 10 lakh to Rs.50 lakh Rs.1,00,000+ 30% on 10 lakh up to Rs.50 lakh+(Cess of 4% on tax liability)
Income from 50 lakh to Rs.1 crore 13 lakh + 30% on 50 lakh up to 1 crore+ (Cess of 4% on tax liability and 10% surcharge)
Income from Rs.1 crore and above 28 lakh +30% on above 1 crore+ (Cess of 4% on tax liability and 15% surcharge)

Tax slabs and tax rates of the NEW TAX REGIME are as under.

Note: An additional 4% Health & education cess will be applicable to the tax amount calculated as above.

Individuals born after 01.04.1961

Tax slabs Tax and surcharge
Up to Rs.2.5 lakh Nil
Income exceeding Rs 2.5 lakh up to Rs 5 lakh 5%(Tax rebate of Rs 12,500 available under section 87A)
Income exceeding Rs5 lakh up to Rs7.5 lakh 12500+10% on the income exceeding Rs.5 lakh
Income exceeding Rs7.5 lakh up to Rs10 lakh 37500+15% on the income exceeding Rs.7.5 lakh up to Rs10 lakh
Income exceeding Rs10 lakh up to Rs12.5 lakh 75000+20% on the income exceeding Rs10 lakh up to Rs12.5 lakh
Income exceeding Rs.12.5 lakh up to Rs15 lakh 125000+25% on the income exceeding Rs12.5 lakh up to Rs15 lakh
Income exceeding Rs15 lakh 187500+30% on the income exceeding Rs15 lakh

Note: An additional 4% Health & education cess will be applicable to the tax amount calculated as above.

Senior citizen Born on or before 31.03.1961

Tax slabs Tax and surcharge
Up to Rs.3 lakh Nil
Income exceeding Rs3 lakh up to Rs5 lakh 5%(Tax rebate of Rs10000 available under section 87A)
Income exceeding Rs5 lakh up to Rs7.5 lakh 10000+10% on the income exceeding Rs.5 lakh up to Rs7.5 lakh
Income exceeding Rs7.5 lakh up to Rs10 lakh 35000+15% on the income exceeding Rs.7.5 lakh up to Rs10 lakh
Income exceeding Rs10 lakh up to Rs12.5 lakh 72500+20% on the income exceeding Rs10 lakh up to Rs12.5 lakh
Income exceeding Rs.12.5 lakh up to Rs15 lakh 122500+25% on the income exceeding Rs12.5 lakh up to Rs15 lakh
Income exceeding Rs15 lakh 185000+30% on the income exceeding 15lakh

Note: An additional 4% Health & education cess will be applicable to the tax amount calculated as above.

Super Senior citizen Born on or before 31.03.1941

Tax slabs Tax and surcharge
Up to Rs.5 lakh Nil
Income exceeding Rs5 lakh up to Rs7.5 lakh 10% on the income exceeding Rs.5 lakh up to Rs7.5 lakh
Income exceeding Rs7.5 lakh up to Rs10 lakh 25000+15% on the income exceeding Rs.7.5 lakh up to Rs10 lakh
Income exceeding Rs10 lakh up to Rs12.5 lakh 62500+20% on the income exceeding Rs10 lakh up to Rs12.5 lakh
Income exceeding Rs.12.5 lakh up to Rs15 lakh 112500+25% on the income exceeding Rs12.5 lakh up to Rs15 lakh
Income exceeding Rs15 lakh 175000+30% on the income exceeding 15lakh

Note: An additional 4% Health & education cess will be applicable to the tax amount calculated as above.

If you are opting for the new tax regime, then you need to know (click) incomes that are exempted from income tax even in the new tax regime.

Related article:

Surendra Naik

Share
Published by
Surendra Naik

Recent Posts

Features of a Computerized Accounting System

Accounting is a multifaceted discipline. It caters to the diverse informational needs of stakeholders within…

5 hours ago

What is the meaning of computerized accounting?

As the name says ‘computerised accounting’ is the use of computers, software, and hardware to…

1 day ago

Supreme Court overrules capping of Credit card charges

The Supreme Court today overruled a 2008 decision by the National Consumer Disputes Redressal Commission…

2 days ago

Preparation and Presentation of Financial Statements of Banks

The Bank’s financial statements are prepared under the historical cost convention, on the accrual basis…

2 days ago

Accounting Treatment of Specific Items under accounting policies of banks

The term "accounting treatment" represents the prescribed manner or method in which an accountant records…

3 days ago

Explained: Disclosures Prescribed by RBI under Basel-III

The Basel Committee on Banking Supervision (BCBS) is the primary global standard setter for the…

3 days ago