Income Tax is levied on the income earned by all the individuals, HUF, partnership firms, LLPs, and corporate as per the Income Tax Act of India. In the case of individuals, tax is levied as per the slab system if their income is above the minimum threshold limit. Here in this article, we will know about the Income Tax Slab For Individual For AY 2022-23.
Meaning of Income Tax Slabs
In India, tax laws divide taxpayers into different groups as per their taxable income and levy income tax at different rates. These groups are called Income Tax Slabs. This type of taxation enables progressive and fair tax systems in the country. Such Income Tax Slabs tend to undergo a change during every budget. These slab rates are different for different categories of taxpayers.
The Income Tax Slab tends to change over time, always considering the fluctuation of inflation levels. Apart from this, the government also ensures to provide a rebate on the income tax for those individuals failing under a lower income group.
Income Tax Slab For Individual For AY 2022-23
As we discussed above that, the Indian Income Tax Act levies the tax on individual taxpayers on the basis of a slab system. This type of taxation enables a progressive and fair system in the country. These slab rates are different for different categories of taxpayers. Indian income tax slab classify three categories of” individual” taxpayers such as-
1. Individual aged less than of 60 years including resident and non resident assessee.
2. Resident senior citizens 60 to 80 years of age.
3. Resident super senior citizens aged more than 80 years.
As per the budget 2021, there is no change in the income tax slab for the assessment year 2022-23. There are two tax regimes (New Regime and Old Regime) as usual. Under the new regime, the taxpayer has an option to choose either a new regime or stay in the old regime.
New Regime (Section 115BAC)- Here taxpayers can choose to pay tax at lower rates as per the new regime on the condition that they forgo certain permissible exemptions and deductions available under Income Tax. It is to be noted that the tax rate in the new tax regime is the same for all categories of individuals and HUF. Hence no increased basic exemption limit benefit will be available to senior and super senior citizens.
Old Regime (Existing Rate of Tax)- To continue to pay taxes under the existing tax rates. The assessee can avail of rebates and exemptions by staying in the old regime and paying tax at a higher rate.
Here you find the chart of Income Tax Slab For Individual For AY 2022-23 assessee as per both new and old regimes.
New Regime- Income Tax Slab For Individual For AY 2022-23 (Men and Women)
Here is the applicable Latest Income Tax Slab For Individual For AY 2022-23 as per the New Tax Regime-
|Income Tax slab||Income Tax Rate for All individuals and HUF- New Scheme|
|upto Rs. 2,50,000||NIL- No Tax|
|Rs. 2,50,001 to Rs. 5,00,000||5 % (Tax Rebate u/s 87a is available)|
|Rs. 5,00,001 to Rs. 7,50,000||10%|
|Rs. 7,50,001 to Rs. 10,00,000||15%|
|Rs. 10,00,001 to Rs. 12,50,000||20%|
|Rs. 12,50,001 to Rs. 15,00,000||25%|
|Above Rs. 15,00,000||30%|
Note 1- The taxpayer opting for concessional rates in the New Tax Regime will have to forgo certain exemptions and deductions available in the existing old tax regime.
Note 2:- A tax rebate under section 87A is allowed to individual taxpayers for a maximum amount of Rs. 12,500 if the total income is up to Rs. 5,00,000 for AY 2022-23. The amount of rebate shall be 100% of the Income Tax or Rs. 12,500 whichever is less. (New Regime)
Old Regime- Income Tax Slab For Individual For AY 2022-23 (Men and Women)
Here is the applicable Latest Income Tax Slab For Individual For AY 2022-23 as per the Old Tax Regime-
|Income Tax Slab||Income Tax Rates (Age below 60 years)|
|upto Rs. 2,50,000||NIL- No Tax|
|Rs. 2,50,000 to Rs. 5,00,000||5 % of total income exceeding Rs. 2,50,000|
|Rs. 5,00,001 to Rs. 10,00,000||Rs. 12,500 + 20% of total income exceeding Rs. 5,00,000|
|Above Rs. 10,00,000||Rs. 1,12,500 + 30% of total income exceeding Rs. 10,00,000|
Income Tax rates for Senior Citizen (Age 60 years to 80 years)
|Income Tax Slab||Income Tax Rates – Senior Citizen|
|upto Rs. 3,00,000||NIL- No Tax|
|Rs. 3,00,000 to Rs. 5,00,000||5 % of total income exceeding Rs. 3,00,000|
|Rs. 5,00,001 to Rs. 10,00,000||Rs. 10,000 + 20% of total income exceeding Rs. 5,00,000|
|Above Rs. 10,00,000||Rs. 1,10,000 + 30% of total income exceeding Rs. 10,00,000|
Income Tax rates for Super Senior Citizen (Age above 80 years of age)
|Income Tax Slab||Income Tax Rates – Super Senior Citizen|
|upto Rs. 5,00,000||NIL- No Tax|
|Rs. 5,00,001 to Rs. 10,00,000||20% of total income exceeding Rs. 5,00,000|
|Above Rs. 10,00,000||Rs. 1,00,000 + 30% of total income exceeding Rs. 10,00,000|
The following points are also applicable-
Note 1:- An additional 4% health & education cess will be applicable to the tax amount calculates as above. (Both Regime)
Note 2:- A tax rebate under section 87A is allowed to individual taxpayers (Age below 60 years) for a maximum amount of Rs. 12,500 if the total income is up to Rs. 5,00,000 for AY 2022-23. The amount of rebate shall be 100% of the Income Tax or Rs. 12,500 whichever is less. (Old Regime)
Note 3:- A tax rebate under section 87A is allowed to individual taxpayers (Age 60 or 60 + but below 80 years) for a maximum amount of Rs. 10,000 if the total income is up to Rs. 5,00,000 for AY 2022-23. The amount of rebate shall be 100% of the Income Tax or Rs. 10,000 whichever is less. (Old Regime)
Note 4:- The surcharge over the tax calculated will be charged (subject to marginal relief) as per the below table- (Both Regime)
|Income Limit||Surcharge rate on amount of Income Tax|
|Net income exceed Rs. 50 Lakhs but does not exceed Rs. 1 Crore||10%|
|Net Income exceed Rs. 1 Crore but does not exceed Rs. 2 Crore||15%|
|Net Income exceed Rs. 2 Crore but does not exceed Rs. 5 Crore||25%|
|Net Income exceed Rs. 5 Crore||37%|
How to choose between the new tax regime and the old tax regime
Salaried Person- For this purpose, a salaried person is free to opt-in or opt-out every year. He is only required to intimate his employer about his choice and the employer has to deduct TDS according to the employee choice.
Non-Salaried Person- A non-salaried person, has to make his choice at the time of filing his return. They are not required to intimate anyone during the year. However, a non-salaried taxpayer has no option to change his choice every year. It means once a non-salaried person opt-out of the new tax regime, they can not opt-in again for the new tax regime in the future.
***For tax planning purposes, a taxpayer needs to make a comparison between old and new tax regimes according to his estimated income of that financial year. Once the taxpayer chooses the right tax regime, the investment TDS or advance tax payable calculation are made accordingly.
Standard Deduction For AY 2022-23
Standard deduction means a flat deduction to individuals earning a salary or pension income. It was introduced back in Budget 2018 in lieu of transport allowance and reimbursement of miscellaneous medical expenses. It is allowable from the “Income taxable under the head salary” The tax benefits can be claimed irrespective of the actual amount spent on ‘transport allowance’ and ‘medical allowance’.
For the assessment year 2022-23, the standard deduction applicable to salaries individual and pensioners is Rs. 50,000/-. But if you are choosing to pay tax under the new tax regime then you can not avail of the standard deduction
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Disclaimer: The information contained in the above article are solely for informational purpose after exercising due care. However, it does not constitute professional advice or a formal recommendation. The author does not own any responsibility for any loss or damage caused to any person, directly or indirectly, for any action taken on the basis of the above article.
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