Income Tax Slabs & Rates AY 2023-2024 and earlier years.

Latest Income Tax Slab Rates (Updated)

Updated on: 01 Aug, 2022 12:14 AM

Check Income Tax Slab for previous years: FY 2022-23 , 2021-22 & 2020-21
Latest income tax slab rates in India for Individuals, Company, NRI, HUF, BOI, AOP, LLP, Local Authority, co-operative society.

In India, we have a progressive method of taxation i.e. higher income higher the tax payable. To govern the same, taxation in India is determined based on Income Tax slabs The applicability of the Income Tax Slab depends on various factors, major of such are – residential status, the quantum of income, type of assessee and age.

Income Tax Slab Rates for FY 2020-21 (AY 2021-22) , FY 2021-22 (AY 2022-23) & FY 2022-23 (AY 2023-24)

If Person is Resident Individual or HUF: –

Existing Regime FY 2020-2021, 2021-2022,
2022-2023
Existing Regime FY 2020-2021, 2021-2022,
2022-2023
Existing Regime FY 2020-2021, 2021-2022,
2022-2023
New Regime FY 2020-2021
2021-2022
2022-2023
Income of AsseesseeIndividuals with age less than 60 years or HUFIndividuals with age 60years or more but less than 80 yearsIndividuals with age 80 years or more
Applicable for All Individuals or HUF

Rs 0.0 to Rs 2.5 LakhsNILNILNILNIL
Rs 2,50,001 to Rs 3.00 Lakhs5% (tax rebate u/s 87a is available)NILNIL5% (tax rebate u/s 87a is available)
Rs. 3,00,001 to Rs 5.00 Lakhs5% (tax rebate u/s 87a is available)NIL
Rs. 5,00,001 to Rs 7.5 Lakhs20%20%20%10%
Rs 7,50,001 to Rs 10.00 Lakhs20%20%20%15%
Rs 10,00,001 to Rs. 12.50 Lakhs30%30%30%20%
Rs. 12,50,001 to Rs. 15.00 Lakhs30%30%30%25%
Exceeding Rs. 15 Lakhs30%30%30%30%
Note:
1. In Addition to basic Income Tax as discussed above , Followings are also to be taken care of:-
– Surcharge: Surcharge is levied on the amount of income-tax at following rates if total income of an assessee exceeds specified limits:-Rs. 50 Lakhs to Rs. 1 CroreRs. 1 Crore to Rs. 2 CroresRs. 2 Crores to Rs. 5 CroresMore Than 5 Crores10%15%25%37%- Health & Education Cess @4%
– Rebate u/s 87A (no tax will be payable on total income upto Rs.5 lakh in both regimes)
2. Certain income tax exemptions and deductions like section 80C, 80D,80TTB, HRA etc are available in the OLD tax regime but will not be available under the new tax regime.

If Person is Non-Resident Individual: –

Income of the assesseeRate of Tax under Existing Regime for FY 22-23, 21-22 and 20-21 (i.e, AY 23-24, 22-23 & 21-22)New Regime Slab Rates for FY 22-23, 21-22 and 20-21 (i.e, AY 23-24, 22-23 & 21-22)
Rs 0.0 to Rs 2.5 LakhsNILNIL
Rs 2,50,001 to Rs 5.00 Lakhs5% 5% 
Rs. 5,00,001 to Rs 7.5 Lakhs20%10%
Rs 7,50,001 to Rs 10.00 Lakhs20%15%
Rs 10,00,001 to Rs. 12.50 Lakhs30%20%
Rs. 12,50,001 to Rs. 15.00 Lakhs30%25%
Exceeding Rs. 15 Lakhs30%30%
Note:
Surcharge & cess also applicable here as in case of resident.

If Person is AOP/BOI/Artificial Judicial Person: –

Income of the assesseeRate of Tax under Existing Regime for FY 22-23, 21-22 and 20-21 (i.e, AY 23-24, 22-23 & 21-22)
Rs 0.0 to Rs 2.5 LakhsNIL
Rs 2,50,001 to Rs 5.00 Lakhs5% 
Rs. 5,00,001 to Rs 10.00 Lakhs20%
Above 10.00 Lakhs30%

In case of a Domestic Company: –

Domestic CompanyNORMAL TAX RATE 
Assessment Year 2021-22Assessment Year 2022-23
Where its total turnover or gross receipt during the previous year 2018-19 does not exceed Rs. 400 crore25%NA
Where its total turnover or gross receipt during the previous year 2019-20 does not exceed Rs. 400 croreNA25%
Any other domestic company30%30%

Also, the Government introduced special tax rates for domestic companies under various sections, these can be summarized as:-

Domestic CompanySPECIAL TAX RATES 
Assessment Year 2021-22Assessment Year 2022-23
Where it opted for section 115BA25%25%
Where it opted for Section 115BAA22%22%
Where it opted for Section 115BAB15%15%

Note:
1. In Addition to basic Income Tax as discussed above, Followings are also to be taken care of:-
– Surcharge: Surcharge is levied on the amount of income-tax at following rates if total income of an assessee exceeds specified limits:-

Rs. 1 Crore to 10 CroresAbove Rs. 10 Crore
7%12%

– Health & Education Cess @4%
2. MAT Provisions as per section 115JB would also be applicable while calculating tax payable.

If Person is Foreign Company: –

Nature of IncomeTax Rate
Royalty received from Government or an Indian concern in pursuance of an agreement made with the Indian concern after March 31, 1961, but before April 1, 1976, or fees for rendering technical services in pursuance of an agreement made after February 29 1964, but before April 1, 1976 and where such agreement has, in either case, been approved by the Central Government50%
Any other income40%
Note:
1. In Addition to basic Income Tax as discussed above, Followings are also to be taken care of:-
– Surcharge: Surcharge is levied on the amount of income-tax at following rates if total income of an assessee exceeds specified limits:-Rs. 1 Crore to 10 CroresAbove Rs. 10 Crore2%5%- Health & Education Cess @4%
2. MAT Provisions as per section 115JB would also be applicable while calculating tax payable.

What is the concept of the new tax regime?

A new tax slab has been introduced in Budget 2020 which will be effective from 1 April 2020. This new income tax slab has lower rates of tax for higher incomes. It allows you to lower your tax liability subject to certain conditions and is optional.

So, If you choose to calculate your taxes using the new tax regime, the specified deductions and exemptions available under the Income Tax Act, 1961 would not be available. Under the old tax regime, however, the deductions and exemptions would be available.


What are the exemptions/deductions unavailable under the new tax regime?

The budget has removed 70 of the available 100 exemptions. The following exemptions and deductions are some of the most important ones which would not be available if the new tax slab is chosen for tax calculation –

  1. Standard deduction of INR 50,000 from salary income under Section 16
  2. House Rent Allowance under Section 10 (13A)
  3. Leave Travel Allowance under Section 10(5)
  4. Allowances under Section 10(14)
  5. Food coupons and other tax-free allowances and perquisites
  6. Deductions under Chapter VI A of the Income Tax Act like Section 80C, 80D, 80TTA, etc.
  7. Deduction for home loan interest paid for self-owned house property under Sections 24 (b) and Section 80EEA

Which are the Exemptions and deductions still available under the new tax regime?

The following deductions and exemptions would be available under the new tax regime –

  1. Employer’s contribution to the NPS for up to 10% of your salary under Section 80CCD (2) [ 14% in case of Central Govt employee]
  2. Standard deduction of 30% of net rental income if house property is let out.
  3. Home loan interest paid can be deducted from the rental income from house property. However, loss from the House Property head can not be set off from any other head of income.
  4. Transport allowance exemption will be available to Divyang employees to meet the day to day travel expenses from the workplace to home.
  5. Conveyance allowance will be allowed to meet the expenditure on the conveyance for the purpose of performing the official duty.
  6. Allowances granted will be allowed to meet the cost of travelling on tour or on transfer to the employees.
  7. Daily allowance granted for day to day ordinary expenses in case of absence from his / her normal place of duty.

What are the benefits or disadvantages of opting for both tax regimes?

The various benefits and disadvantages of old and new tax regimes include

BenefitsDisadvantages
OLD TAX REGIME
Option to avail around 70 exemptions and deductions under the Income Tax ActInvestment only in specified options were required to claim the tax benefit.
Practice to submit false disclosures for investment proofs is prevalent
NEW TAX REGIME
Tax Rates Reduced Not attractive to those who were already investing and have binding premiums
No major tax saving options given, increasing cash flow in hands of taxpayers


So, plan your Advance Tax Liability using the data above and pay accordingly.

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