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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 of the assessee | Rate 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) | ||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|
Individuals with age less than 60 years or HUF | Individuals with age 60years or more but less than 80 years | Individuals with age 80 years or more | Applicable for All Individuals or HUF | |||||||||
Rs 0.0 to Rs 2.5 Lakhs | NIL | NIL | NIL | NIL | ||||||||
Rs 2,50,001 to Rs 3.00 Lakhs | 5% (tax rebate u/s 87a is available) | NIL | NIL | 5% (tax rebate u/s 87a is available) | ||||||||
Rs. 3,00,001 to Rs 5.00 Lakhs | 5% (tax rebate u/s 87a is available) | NIL | ||||||||||
Rs. 5,00,001 to Rs 7.5 Lakhs | 20% | 20% | 20% | 10% | ||||||||
Rs 7,50,001 to Rs 10.00 Lakhs | 20% | 20% | 20% | 15% | ||||||||
Rs 10,00,001 to Rs. 12.50 Lakhs | 30% | 30% | 30% | 20% | ||||||||
Rs. 12,50,001 to Rs. 15.00 Lakhs | 30% | 30% | 30% | 25% | ||||||||
Exceeding Rs. 15 Lakhs | 30% | 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:-
- 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. |
Income of the assessee | Rate 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 Lakhs | NIL | NIL | ||
Rs 2,50,001 to Rs 5.00 Lakhs | 5% | 5% | ||
Rs. 5,00,001 to Rs 7.5 Lakhs | 20% | 10% | ||
Rs 7,50,001 to Rs 10.00 Lakhs | 20% | 15% | ||
Rs 10,00,001 to Rs. 12.50 Lakhs | 30% | 20% | ||
Rs. 12,50,001 to Rs. 15.00 Lakhs | 30% | 25% | ||
Exceeding Rs. 15 Lakhs | 30% | 30% | ||
Note: Surcharge & cess also applicable here as in case of resident. |
Income of the assessee | Rate 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 Lakhs | NIL |
Rs 2,50,001 to Rs 5.00 Lakhs | 5% |
Rs. 5,00,001 to Rs 10.00 Lakhs | 20% |
Above 10.00 Lakhs | 30% |
Domestic Company | NORMAL TAX RATE | |
Assessment Year 2021-22 | Assessment Year 2022-23 | |
Where its total turnover or gross receipt during the previous year 2018-19 does not exceed Rs. 400 crore | 25% | NA |
Where its total turnover or gross receipt during the previous year 2019-20 does not exceed Rs. 400 crore | NA | 25% |
Any other domestic company | 30% | 30% |
Also, the Government introduced special tax rates for domestic companies under various sections, these can be summarized as:-
Domestic Company | SPECIAL TAX RATES | |
Assessment Year 2021-22 | Assessment Year 2022-23 | |
Where it opted for section 115BA | 25% | 25% |
Where it opted for Section 115BAA | 22% | 22% |
Where it opted for Section 115BAB | 15% | 15% |
Rs. 1 Crore to 10 Crores | Above Rs. 10 Crore |
7% | 12% |
Nature of Income | Tax 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 Government | 50% | |||||||
Any other income | 40% | |||||||
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:-
2. MAT Provisions as per section 115JB would also be applicable while calculating tax payable. |
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.
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 –
The following deductions and exemptions would be available under the new tax regime –
The various benefits and disadvantages of old and new tax regimes include
Benefits | Disadvantages |
OLD TAX REGIME | |
Option to avail around 70 exemptions and deductions under the Income Tax Act | Investment 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 |
The bottom line comes down to numbers. Before deciding on which regime is suitable for you, you need to calculate your tax liability under both the regimes with and without deductions and exemptions. The regime which gives you the lowest tax liability would be better depending on your requirements. To understand better which tax regime is suitable for which tax slab and to calculate the tax liability under both tax regimes you can use our TAX LIABILITY CALCULATOR which provides tax liability for both the new tax regime and old tax regime.
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In order to understand the process of calculation of income tax payable, one needs to first select the Slab rates applicable and after that simple mathematical calculation as shown below would work,
Let’s consider the calculation of Mr Abhishek with income Rs. 9,50,000 under the old tax regime:
Applicable Tax Slab | Applicable Tax Rate | Tax Amount |
---|---|---|
2.5 lakhs | 0% | 0 i.e., 0% of 250000 (250000-0) |
2,50,001 to 5,00,000 | 5% | 12,500 i.e, 5% of 250000 (500000-250000) |
5,00,001 to 10,00,000 | 20% | 90,000 i.e, 20% of 450000 (950000* – 500000) |
Basic Tax Cess @ 4% Total Tax |
1,02,500 4,100 1,06,600 |
* Here, as the income of Mr. Abhishek is Rs. 9,50,0000 so the tax would be calculated only up to that amount.
As per the new optional tax structure, an individual or HUF can choose to pay income tax at the following rates for FY 2020-21 (AY 2021-22)
Pay Income Tax | Rates |
---|---|
Upto Rs 2.5 Lakhs | Nil |
Above 2.5 Lakhs to 5 Lakhs | 5% |
Above 5 Lakhs to 7.5 Lakhs | 10% |
Above 7.5 Lakhs to 10 Lakhs | 15% |
Above 10 Lakhs to 12.50 Lakhs | 20% |
Above 12.50 Lakhs to 15 Lakhs | 25% |
More than 15 Lakhs | 30% Rate Continues |
Budget 2020 pronounced a new income tax structure that is optional for the individuals or HUF. The new reduced income tax rates can be opted for if the taxpayer is ready to forego all major deductions and exemptions available under the income tax act except 80CCD(2), 80JJAA
Yes, in lieu of any specific exclusion we can say that rebate u/s 87A amounting to Rs 12,500 is also available under the new income tax regime introduced in Budget 2020.
The selection of the regime CAN BE CHANGED every year by the salaried taxpayer. In case such an individual or HUF is also having income from business then this selection is not allowed to be changed every year.
Yes, the Surcharge will still be applicable under the new tax regime for Individuals or HUF. The surcharge rates are the same as that of the last financial year(FY 2019-20).
Health and education cess @4% will also apply under the new income tax regime.
Indian income tax structure has witnessed for the first time applicability of two slab rates simultaneously. As a result of which a lot of confusion has been created amongst the taxpayers. One of the most important criteria while making the choice of applicable tax slab will be whether you wish to claim exemptions and deductions available under the old income tax structure. But that should not form the only criteria lets get a better comparative understanding of these tax regimes.
A comparative analysis of income tax calculation for FY 2020-21 (AY 2021-22) under the existing tax slab and the new income tax slabs introduced in Budget 2020 can be understood by comparing taxable income under both scenarios. To know the detailed calculation please refer.
As per section 288A, total income computed in accordance with the provisions of the Income-tax Law shall be rounded off to the nearest multiple of ten. The following points should be kept in mind while rounding off the total income:
First, any part of the rupee consisting of any paisa should be ignored. After ignoring paisa, if such amount is not in multiples of ten, and the last figure in that amount is five or more, the amount shall be increased to the next higher amount which is in multiple of ten and if the last figure is less than five, the amount shall be reduced to the next lower amount which is in multiple of ten and the amount so rounded off shall be deemed to be the total income of the taxpayer.?
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