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

Senior Citizen Born on before 31.03.1961

Super Senior Citizen (Born on before 31.03.1941)

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

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

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

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: