Income Tax Slab Rates under old & new tax regime for AY 2022-23

Income Tax16/01/2022 Source: Income Tax

 

Income Tax Slab Rates for Individuals and HUFs

With effect from FY 2020-21 (AY 2021-22), Individuals and HUFs have been given two alternative income tax regimes. According to which the Individual and HUF taxpayers can either continue with the old regime or choose to opt for new tax regime. New Income Tax Slab Rates (New regime) introduced in the Budget 2020 for AY 2021-22 onwards is kept optional for the taxpayers, where taxpayers are open to choose either to Income tax slab rates under old regime or new regime.

It is completely optional for taxpayers to choose between the existing income tax regime (which allows for availing existing income tax exemptions and deductions) and a new tax regime (which does not allow for availing existing income tax exemptions and deductions).

Income tax slab rates under old and new tax regime applicable in case of individual for assessment year 2022-23 are as follows:-

(A) In case of an Individual (Other than senior and super senior citizen) AY 2022-23

Net Income Range Income Tax Slab Rate (Old regime)   Net Income Range Income Tax Slab Rate (New regime) Surcharge
Up to Rs. 2,50,000 Nil   Up to Rs. 2,50,000 Nil Nil
From 2,50,000 to 5,00,000 5%   From 2,50,000 to 5,00,000 5% Nil
From 5,00,000 to 7,50,000 20%   From 5,00,000 to 7,50,000 10% Nil
From 7,50,000 to 10,00,000 20%   From 7,50,000 to 10,00,000 15% Nil
From 10,00,000 to 12,50,000 30%   From 10,00,000 to 12,50,000 20% Nil
From 12,50,000 to 15,00,000 30%   From 12,50,000 to 15,00,000 25% Nil
From 15,00,000 to 50,00,000 30%   From 15,00,000 to 50,00,000 30% Nil
From 50,00,000 to 1,00,00,000 30%   From 50,00,000 to 1,00,00,000 30% 10%
From 1,00,00,000 to 2,00,00,000 30%   From 1,00,00,000 to 2,00,00,000 30% 15%
From 1,00,00,000 to 5,00,00,000 30%   From 1,00,00,000 to 5,00,00,000 30% 25%
Above 5,00,00,000 30%   Above 5,00,00,000 30% 37%

(B) In case of Senior Citizen Individual (who is 60 years or more at any time during the previous year) AY 2022-23

Net Income Range Income Tax Slab Rate (Old regime)   Net Income Range Income Tax Slab Rate (New regime) Surcharge
Up to Rs. 3,00,000 Nil   Up to Rs. 2,50,000 Nil Nil
From 3,00,000 to 5,00,000 5%   From 2,50,000 to 5,00,000 5% Nil
From 5,00,000 to 7,50,000 20%   From 5,00,000 to 7,50,000 10% Nil
From 7,50,000 to 10,00,000 20%   From 7,50,000 to 10,00,000 15% Nil
From 10,00,000 to 12,50,000 30%   From 10,00,000 to 12,50,000 20% Nil
From 12,50,000 to 15,00,000 30%   From 12,50,000 to 15,00,000 25% Nil
From 15,00,000 to 50,00,000 30%   From 15,00,000 to 50,00,000 30% Nil
From 50,00,000 to 1,00,00,000 30%   From 50,00,000 to 1,00,00,000 30% 10%
From 1,00,00,000 to 2,00,00,000 30%   From 1,00,00,000 to 2,00,00,000 30% 15%
From 1,00,00,000 to 5,00,00,000 30%   From 1,00,00,000 to 5,00,00,000 30% 25%
Above 5,00,00,000 30%   Above 5,00,00,000 30% 37%

(C) In case of Super Senior Citizen Individual (who is 80 years or more at any time during the previous year) AY 2022-23

Net Income Range Income Tax Slab Rate (Old regime)   Net Income Range Income Tax Slab Rate (New regime) Surcharge
Up to Rs. 2,50,000 Nil   Up to Rs. 2,50,000 Nil Nil
From 2,50,000 to 5,00,000 Nil   From 2,50,000 to 5,00,000 5% Nil
From 5,00,000 to 7,50,000 20%   From 5,00,000 to 7,50,000 10% Nil
From 7,50,000 to 10,00,000 20%   From 7,50,000 to 10,00,000 15% Nil
From 10,00,000 to 12,50,000 30%   From 10,00,000 to 12,50,000 20% Nil
From 12,50,000 to 15,00,000 30%   From 12,50,000 to 15,00,000 25% Nil
From 15,00,000 to 50,00,000 30%   From 15,00,000 to 50,00,000 30% Nil
From 50,00,000 to 1,00,00,000 30%   From 50,00,000 to 1,00,00,000 30% 10%
From 1,00,00,000 to 2,00,00,000 30%   From 1,00,00,000 to 2,00,00,000 30% 15%
From 1,00,00,000 to 5,00,00,000 30%   From 1,00,00,000 to 5,00,00,000 30% 25%
Above 5,00,00,000 30%   Above 5,00,00,000 30% 37%

Note:

(1) Rebate- A resident individual (whose net income does not exceed Rs. 5,00,000) can avail rebate under section 87A. It is deductible from income-tax before calculating education cess. The amount of rebate is 100 percent of income-tax or Rs. 12,500, whichever is less.

(2) Health and Education Cess - Health and Education Cess is levied at the rate of 4% on the amount of income-tax plus surcharge.

(3) The option to pay tax under new tax regime (Section 115BAC) shall be available only if the total income of assessee is computed without claiming following specified exemptions or deductions:-

  1. The standard deduction, professional tax and entertainment allowance.
  2. Leave travel concession u/s 10(5).
  3. House rent allowance u/s 10(13A).
  4. Allowances received by the members of Parliament and State Legislature etc u/s 10(17).
  5. Allowances for expenses related to performance of duties u/s 10(14).
  6. Minor child income allowance.
  7. Interest paid on home loan for calculation of taxable income u/s 24(b) for the property which is self occupied.
  8. Loss from any other house property.
  9. Deduction of 1/3 of family pension or Rs 15000 whichever is less from his family pension u/s 57(iia).
  10. Deduction under any of the provisions of Chapter VI-A(like section 80C, 80CCC, 80CCD, 80D, 80DD, 80DDB, 80E, 80EE, 80EEA, 80EEB, 80G, 80GG, 80GGA, 80GGC, 80IA, 80-IAB, 80-IAC, 80-IB, 80-IBA, etc). Except deduction for employer’s contribution made under NPS scheme u/s 80CCD(2) subject to the limit of 14% of salary in case of Central Government employee and 10% in case of other employee.

How income tax has been calculated under the new tax regime and old tax regime can be understand by following- Where income of individual (Other than senior and super senior citizen) having income upto Rs.10,00,000 

Net Income Range Income Tax Slab Rate (Old regime)   Net Income Range Income Tax Slab Rate (New regime)
Up to Rs 2,50,000 Exempt from tax   Up to Rs 2,50,000 Exempt from tax
Rs 2,50,000 to Rs 5,00,000 5% (5% of Rs 5,00,000 less Rs 2,50,000)   Rs 2,50,000 to Rs 5,00,000 5% (5% of Rs 5,00,000 less Rs 2,50,000)
From 5,00,000 to 10,00,000 20% (20% of Rs 10,00,000 less Rs 5,00,000)   Rs 5,00,000 to Rs 7,50,000 10% (10% of Rs 7,50,000 less Rs 5,00,000)
      Rs 7,50,000 to Rs 10,00,000 15% (15% of Rs 10,00,000 less Rs 7,50,000)

 

Income Tax Slab Rate for Partnership Firm

For the Assessment Year 2022-23, a partnership firm (including LLP) is taxable at 30%.

Add:

 Surcharge : The amount of income-tax shall be increased by a surcharge at the rate of 12% of such tax, where total income exceeds one crore rupees.

 Health and Education Cess : The amount of income-tax and the applicable surcharge, shall be further increased by health and education cess calculated at the rate of four percent of such income-tax and surcharge

 

Income Tax Slab Rate for Local Authority

For the Assessment Year 2022-23, a local authority is taxable at 30%.

Add:

Surcharge : The amount of income-tax shall be increased by a surcharge at the rate of 12% of such tax, where total income exceeds one crore rupees.

Health and Education Cess : The amount of income-tax and the applicable surcharge, shall be further increased by health and education cess calculated at the rate of four percent of such income-tax and surcharge.

Income Tax Slab Rate for Domestic Company

Income-tax rates applicable in case of domestic companies for assessment year 2022-23 are as follows:

Domestic Company Income Tax Rate
Where its total turnover or gross receipt during the previous year 2019-20 does not exceed Rs. 400 crore 25%
Any other domestic company 30%

Add:

 Surcharge : The amount of income-tax shall be increased by a surcharge at the rate of 7% of such tax, where total income exceeds one crore rupees but not exceeding ten crore rupees and at the rate of 12% of such tax, where total income exceeds ten crore rupees. The surcharge shall be subject to marginal relief, which shall be as under:

Where income exceeds Rs. 1 crore but not exceeding Rs. 10 crore, the total amount payable as income-tax and surcharge shall not exceed total amount payable as income-tax on total income of Rs. 1 crore by more than the amount of income that exceeds Rs. 1 crore.

Where income exceeds Rs. 10 crore, the total amount payable as income-tax and surcharge shall not exceed total amount payable as income-tax on total income of Rs. 10 crore by more than the amount of income that exceeds Rs. 10 crore

 Health and Education Cess : The amount of income-tax and the applicable surcharge, shall be further increased by health and education cess calculated at the rate of four percent of such income-tax and surcharge.

 

Income Tax Slab Rate for Special Tax rates applicable to a domestic company

The special Income-tax rates applicable in case of domestic companies for assessment year 2022-23 are as follows:

Domestic Company  Income Tax Rate
Where company opted for section 115BA 25%
Where company opted for Section 115BAA 22%
Where company opted for Section 115BAB 15%

Add:

Surcharge : The rate of surcharge in case of a company opting for taxability under Section 115BAA or Section 115BAB shall be flat 10% irrespective of amount of total income.

Health and Education Cess: The amount of income-tax and the applicable surcharge, shall be further increased by health and education cess calculated at the rate of four percent of such income-tax and surcharge.

MAT : The domestic company who has opted for special taxation regime under Section 115BAA & 115BAB is exempted from provision of MAT. However, no exemption is available in case where section 115BA has been opted.

In that case, the provisions of Minimum Alternate Tax (MAT) applies, tax payable cannot be less than 15% (+HEC) of "Book profit" computed as per section 115JB. However, MAT is levied at the rate of 9% (plus surcharge and cess as applicable) in case of a company, being a unit of an International Financial Services Centre and deriving its income solely in convertible foreign exchange.