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2022

Income Tax Slab Rates for Financial Year 2022-23 (AY 2023-24)

Income tax in India is levied on the basis of a slab system in case of Individual and HUF. Slab system means different tax rates are prescribed for different ranges of income. It means the tax rates keep increasing with an increase in the income of the taxpayer. This type of taxation enables progressive and fair tax systems in the country. These slab rates are different for different categories of taxpayers. In case of other type of tax payers flat tax rate is applicable on the total income. However, applicability of slab and rate of tax may differ depends on the type of person. Finance Minister has kept the income-tax rates unchanged with minute changes in surcharge rates.

 

 

Income Tax Slab Rates for Individuals and HUF (Regular Regime):

Individual other than Senior Citizen and Super Senior Citizens

Income Range

Tax Rate

Up to Rs. 2,50,000

Nil

Rs. 2,50,001 to Rs. 5,00,000

5%

Rs. 5,00,001 to Rs. 10,00,000

20%

Above Rs. 10,00,000

30%

Senior Citizen

Income Range

Tax Rate

Up to Rs. 3,00,000

Nil

Rs. 3,00,001 to Rs. 5,00,000

5%

Rs. 5,00,001 to Rs. 10,00,000

20%

Above Rs. 10,00,000

30%

Super Senior Citizen

Income Range

Tax Rate

Up to Rs. 5,00,000

Nil

Rs. 5,00,001 to Rs. 10,00,000

20%

Above Rs. 10,00,000

30%

Hindu Undivided Family

Income Range

Tax Rate

Up to Rs. 2,50,000

Nil

Rs. 2,50,001 to Rs. 5,00,000

5%

Rs. 5,00,001 to Rs. 10,00,000

20%

Above Rs. 10,00,000

30%

 

Income Tax Slab Rates for Individuals and HUF (New Regime under Section 115BAC):

Individual other than Senior Citizen and Super Senior Citizens

Income Range

Tax Rate

Up to Rs. 2,50,000

Nil

Rs. 2,50,001 to Rs. 5,00,000

5%

Rs. 5,00,001 to Rs. 7,50,000

10%

Rs. 7,50,001 to Rs. 10,00,000

15%

Rs. 10,00,000 to 12,50,000

20%

Rs. 12,50,001 to 15,00,000

25%

Above Rs. 15,00,000

30%

 

Note: Rebate under section 87A is available to resident individuals whose total income during the previous year does not exceed Rs. 5,00,000.  Rebate is available to the extent of Rs. 12,500 only and no rebate will be available if total income exceeds Rs. 5,00,000.

 

Income Tax Slab Rates for Association of Persons (AOP) and Body of Individual (BOI):

 

Association of Persons (AOP) and Body of Individual (BOI)

Income Range

Tax Rate

Up to Rs. 2,50,000

Nil

Rs. 2,50,001 to Rs. 5,00,000

5%

Rs. 5,00,001 to Rs. 10,00,000

20%

Above Rs. 10,00,000

30%

 

Income Tax Rates for Co-Operative Societies:

 

Income Range

Tax Rate

Up to Rs. 10,000

10%

From Rs. 10,000 to Rs. 20,000

20%

Above Rs. 20,000

30%

 

Surcharge:

 

Income Range

Tax Rate

Up to Rs. 1 Crore

Nil

From Rs. 1 Crore to Rs. 10 Crore

7%

Above Rs. 10 Crore

12%

  • 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. However, the surcharge shall be subject to marginal relief (where income exceeds one crore rupees, the total amount payable as income-tax and surcharge shall not exceed total amount payable as income-tax on total income of one crore rupees by more than the amount of income that exceeds one crore rupees).

 

Income Tax Rates for Companies:

 

Domestic Company opting for Section 115BAB

Source of Income

Tax Rate

Income from manufacture or production of article or thing

15%

Income from non-manufacturing activities (if no specific rate is prescribed)

22%

Short term capital gains (from transfer of depreciable assets)

15%

Short term capital gains (from transfer of non-depreciable assets)

22%

Excess profit added by the Assessing officer under section 115BAB(6) owning to close connection between company and other person

30%

Special income under Chapter XII

As prescribed under the Act

Domestic Company not opting for Section 115BAB

Turnover

AY 2022-23

AY 2023-24

Total turnover or gross receipt during the previous year 2019-20 does not exceed Rs. 400 crore

25%

N/A

Total turnover or gross receipt during the previous year 2020-21 does not exceed Rs. 400 crore

N/A

25%

Company opted for Section 115BA

25%

25%

Company opted for Section 115BAA

22%

22%

Any other domestic company

30%

30%

 

Foreign Company

Foreign Companies are taxed at a flat rate of 40% in India.

Income Tax rates for Co-operative Society:

 

Type

Income Level

Tax Rate

Co-operative Society Opting for Section 115BAD

N/A

22%

Co-operative Society Not Opting for Section 115BAD

Up to Rs. 10,000

10%

From Rs. 10,001 to Rs. 20,000

20%

Above Rs. 20,000

30%

 

Partnership Firms and LLP:

 

  • Partnership Firms and LLPs and charged at a flat rate of 30% on Net Profit.

 

Local Authorities:

 

  • Like partnership firms and LLP, Local Authorities are also charged at a flat rate of 30%.

Additional Charges apart from Income Tax:

 

Health and Education Cess:

 

A cess is a government-imposed tax on tax, levied to raise funds for specific reasons. Generally, cess is expected to be levied when there is a need to meet specific expenditure for public welfare and discontinued once the government gets enough funds for that purpose.

 

Education cess is an additional tax levied on the basic tax liability with the intention to support the government initiatives to finance basic education. The 4% health and education cess is the same for everybody, irrespective of which income tax slab one falls in. However, there will not be any cess if an individual’s income tax liability is zero.

 

Surcharge:

 

Like Health and Education Cess, Surcharge is also levied on Income Tax. However, surcharge is levied only if taxable income exceeds certain threshold limit in a given financial year. The rate of surcharge depends on nature of income, type of tax payer and quantum of income.

 

Surcharge Rate for Individuals, HUF, Association of Persons, Body of Individuals, Artificial Judicial Persons:

Quantum of Income

Rate of Surcharge

Less than Rs. 50 Lakhs

Nil

Rs. 50 Lakhs to Rs. 1 Crore

10%

Rs. 1 Crore to Rs. 2 Crores

15%

Rs. 2 Crores to Rs. 5 Crores

25%

More than Rs. 5 Crores

37%

 

25% Surcharge and 37% Surcharge would not be applicable in following cases:

 

  1. Dividend Income

  2. Income chargeable as Short Term Capital Gains on Sale of Shares/ Mutual Funds under Section 111A

 

Firms, Co-operative Societies and Local Authorities

Quantum of Income

Rate of Surcharge

Less Than 1 Crore

Nil

More than Rs. 1 Crore

12%

 

Domestic Company

Quantum of Income

Rate of Surcharge

Less Than 1 Crore

Nil

More than Rs. 1 Crore up to 10 Crore

7%

More than 10 Crore

12%

 

Foreign Company

Quantum of Income

Rate of Surcharge

Less Than 1 Crore

Nil

More than Rs. 1 Crore up to 10 Crore

2%

More than 10 Crore

5%

 

Marginal Relief:

 

Marginal Relief is relief from surcharge provided in case where the surcharge payable exceeds the additional income that makes the person liable for surcharge. The amount payable as surcharge shall not exceed income earned exceeding ₹ 50 lakhs, 1 crore, 2 crore or 5 crore respectively.

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