Tax Slabs for AY 2022-23

Individuals and HUFs can opt for the Existing Tax Regime or the New Tax Regime with lower rate of taxation (u/s 115 BAC of the Income Tax Act).

The taxpayer opting for concessional rates in the New Tax Regime will not be allowed certain Exemptions and Deductions (like 80C, 80D,80TTB, HRA) available in the Existing Tax Regime.

For Individual (resident or non-resident) less than 60 years of age anytime during the previous year

Existing Tax Regime		New Tax Regime u/s 115BAC
Income Tax Slab	Income Tax Rate	Income Tax Slab	Income Tax Rate
Up to Rs 2,50,000	Nil	Up to Rs 2,50,000	Nil
Rs 2,50,001 - Rs 5,00,000	5% above Rs 2,50,000	Rs 2,50,001 - Rs 5,00,000	5% above Rs 2,50,000
Rs 5,00,001 - Rs 10,00,000	Rs 12,500 + 20% above Rs 5,00,000	Rs 5,00,001 - Rs 7,50,000	Rs 12,500 + 10% above Rs 5,00,000
Above Rs 10,00,000	Rs 1,12,500 + 30% above Rs 10,00,000	Rs 7,50,001 - Rs 10,00,000	Rs 37,500 + 15% above Rs 7,50,000
		Rs 10,00,001 - Rs 12,50,000	Rs 75,000 + 20% above Rs 10,00,000
		Rs 12,50,001 - Rs 15,00,000	Rs 1,25,000 + 25% above Rs 12,50,000
		Above Rs 15,00,000	Rs 1,87,500 + 30% above Rs 15,00,000

For Individual (resident or non-resident), 60 years or more but less than 80 years of age anytime during the previous year

Existing Tax Regime		New Tax Regime u/s 115BAC
Income Tax Slab	Income Tax Rate	Income Tax Slab	Income Tax Rate
Up to Rs 3,00,000	Nil	Up to Rs 2,50,000	Nil
Rs 3,00,001 - Rs 5,00,000	5% above Rs 3,00,000	Rs 2,50,001 - Rs 5,00,000	5% above Rs 2,50,000
Rs 5,00,001 - Rs 10,00,000	Rs 10,000 + 20% above Rs 5,00,000	Rs 5,00,001 - Rs 7,50,000	Rs 12,500 + 10% above Rs 5,00,000
Above Rs 10,00,000	Rs 1,10,000 + 30% above Rs 10,00,000	Rs 7,50,001 - Rs 10,00,000	Rs 37,500 + 15% above Rs 7,50,000
		Rs 10,00,001 - Rs 12,50,000	Rs 75,000 + 20% above Rs 10,00,000
		Rs 12,50,001 - Rs 15,00,000	Rs 1,25,000 + 25% above Rs 12,50,000
		Above Rs 15,00,000	Rs 1,87,500 + 30% above Rs 15,00,000

For Individual (resident or non-resident) 80 years of age or more anytime during the previous year

Existing Tax Regime		New Tax Regime u/s 115BAC
Income Tax Slab	Income Tax Rate	Income Tax Slab	Income Tax Rate
Up to Rs 5,00,000	Nil	Up to Rs 2,50,000	Nil
Rs 5,00,001 - Rs 10,00,000	20% above Rs 5,00,000	Rs 2,50,001 - Rs 5,00,000	5% above Rs 2,50,000
Above Rs 10,00,000	Rs 1,00,000 + 30% above Rs 10,00,000	Rs 5,00,001 - Rs 7,50,000	Rs 12,500 + 10% above Rs 5,00,000
		Rs 7,50,001 - Rs 10,00,000	Rs 37,500 + 15% above Rs 7,50,000
		Rs 10,00,001 - Rs 12,50,000	Rs 75,000 + 20% above Rs 10,00,000
		Rs 12,50,001 - Rs 15,00,000	Rs 1,25,000 + 25% above Rs 12,50,000
		Above Rs 15,00,000	Rs 1,87,500 + 30% above Rs 15,00,000

Note:

1. The rates of Surcharge and Health & Education cess are same under both the tax regimes.

2. Rebate u/s 87-A Resident Individual whose Total Income is not more than ₹ 5,00,000 is also eligible for a Rebate of up to 100% of income tax or ₹ 12,500, whichever is less. This Rebate is available in both tax regimes.

Surcharge, Marginal Relief and Health & Education Cess

What is Surcharge?

Surcharge is an additional charge levied for persons earning Income above the specified limits, it is charged on the amount of income tax calculated as per applicable rates

10% - Taxable Income above ₹ 50 lakh – up to ₹ 1 crore
15% - Taxable Income above ₹ 1 crore - up to ₹ 2 crore
25% - Taxable Income above ₹ 2 crore - up to ₹ 5 crore
37% - Taxable Income above ₹ 5 crore
Maximum rate of Surcharge on Income by way of Dividend or Income under the provisions of Sections 111A, 112A and 115AD is 15%

What is Marginal Relief?

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

What is Health and Education cess?

Health & Education cess @ 4% shall also be paid on the amount of income tax plus Surcharge (if any)

For more details, Please watch our video

Disclaimer: Although all provisions, notifications and updates, are analyzed in-depth by our team before writing to the public. Any change in detail or information other than fact must be considered a human error. The Guide, Articles, Blogs, FAQ and videos is to provide updated information. Tax matters are always subject to frequent changes hence advisory is only for the benefit of the general public. Hence neither TaxSmooth nor any of its Team members is liable for any consequence that arises on the basis of these write-ups.

CHETNAA GOYAL

FCA, B.COM, More than 10 years of Experience in Direct Tax

Income Tax Slab Rates For Ay 2022-23