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:
There are two different types of receipts that a business or a government generates during…
The Department of Investment and Public Asset Management (DIPAM) released new guidelines amending its earlier2016…
The Government of the National Capital Territory of Delhi has released the official list of…
The Government of Rajasthan in their Order No.16 (1).v.m./2024 dated 19.11.2024 declared bank Holidays under…
Meaning of Expenditure and Expenses: Expenditure refers to the total amount spent to acquire goods…
In pursuance of the explanation in section 25 of NI Act 1881, read with the…