Income Tax Rates for Assessment Year 2022-2023

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Income Tax Rates for Assessment Year 2022-2023

The present article covers the income tax slab rates as applicable for the Assessment Year 2021-2022 (Financial Year 2021-2022).

Income tax slab for individuals (including resident senior citizen and resident super senior citizen) opting for old tax regime-

Individual (resident/ non-resident) below 60 years Resident senior citizen (60 years or more but less than 80 years) Resident super senior citizen above 80 years
Net Income Income Tax Rates Net Income Income Tax Rates Net Income Income Tax Rates
Up to INR 2,50,000 NIL Up to INR 3,00,000 NIL Up to INR 5,00,000 Nil
INR 2,50,001 to INR 5,00,000 5% INR 3,00,001 to INR 5,00,000 5% INR 5,00,001 to INR 10,00,000 20%
INR 5,00,001 to INR 10,00,000 20% INR 5,00,001 to INR 10,00,000 20% Above INR 10,00,000 30%
Above INR 10,00,000 30% Above INR 10,00,000 30%

 

Other points-

  • Surcharge-

Surcharge is leviable at following rates on the amount of income tax-

Particulars Surcharge rates
Total income exceeds INR 50 Lakhs 10% of the income tax
Total income exceeds INR 1 Crore 15% of the income tax
Total income exceeds INR 2 Crores 25% of the income tax
Total income exceeds INR 5 crores 37% of the income tax

 

  • Health and Education Cess-

Health and Education Cess is leviable @4% on the amount of income tax + surcharge.

  • Rebate under section 87A-

Rebate under section 87A is available to resident individual having total income less than INR 5 Lakhs. Lower of the following amounts is available as rebate-

  • 100% of the income tax; or
  • INR 12,500.

 

Income tax slab for HUF/ AOP/ BOI/ any other artificial juridical person opting for old tax regime-

Net Income Income Tax Rates
Up to INR 2,50,000 NIL
INR 2,50,001 to INR 5,00,000 5%
INR 5,00,001 to INR 10,00,000 20%
Above INR 10,00,000 30%

 

Other points-

  • Surcharge-

Surcharge is leviable at following rates on the amount of income tax-

Particulars Surcharge rates
Total income exceeds INR 50 Lakhs 10% of the income tax
Total income exceeds INR 1 Crore 15% of the income tax
Total income exceeds INR 2 Crores 25% of the income tax
Total income exceeds INR 5 crores 37% of the income tax

 

  • Health and Education Cess-

Health and Education Cess is leviable @4% on the amount of income tax + surcharge.

 

Income tax slab for Individual and HUF opting for new tax regime (section 115BAC)-

Total Income Income Tax Rates
Up to INR 2,50,000 NIL
INR 2,50,001 to INR 5,00,000 5%
INR 5,00,001 to INR 7,50,000 10%
INR 7,50,001 to INR 10,00,000 15%
INR 10,00,001 to INR 12,50,000 20%
INR 12,50,001 to INR 15,00,000 25%
Above INR 15,00,000 30%

 

Other points-

  • Surcharge-

Surcharge is leviable at following rates on the amount of income tax-

Particulars Surcharge rates
Total income exceeds INR 50 Lakhs 10% of the income tax
Total income exceeds INR 1 Crore 15% of the income tax
Total income exceeds INR 2 Crores 25% of the income tax
Total income exceeds INR 5 crores 37% of the income tax

 

  • Health and Education Cess-

Health and Education Cess is leviable @4% on the amount of income tax + surcharge.

  • As per the new regime, the benefit of lower rates are available only if the total income is calculated without claiming specified exemptions or deductions.

 

Income tax slab for partnership firm (including LLP)-

Particulars Corresponding Rates
Income tax rates 30%
Surcharge applicable when total income exceeds INR 1 Crore 12% of the amount of income tax
Health and Education Cess 4% of the amount of income tax + surcharge.

 

Income tax slab for domestic company (normal rates and special rates)-

Normal Rates-

Particulars Rates
Company having turnover/ gross recipients up to INR 400 Crores in the previous year 2019-2020 25%
Any other domestic company 30%
  • Surcharge-

Surcharge is leviable at following rates on the amount of income tax-

Range of Total Income Surcharge rates
INR 1 Crore to INR 10 Crores 7% of the income tax
Above INR 10 Crores 12% of the income tax
  • Health and Education Cess-

Health and Education Cess is leviable @4% on the amount of income tax + surcharge.

 

Special Rates-

Particulars Income Tax Rates
Domestic Company opting under section 115BA 25%
Domestic Company opting under section 115BAA 22%
Domestic Company opting under section 115BAB 15%
  • Surcharge-

Surcharge is leviable at following rates on the amount of income tax-

Particulars Surcharge rates
Domestic company opting under section 115BAA 10% of the income tax (irrespective of the amount of total income)
Domestic company opting under section 115BAB 10% of the income tax (irrespective of the amount of total income)
  • Health and Education Cess-

Health and Education Cess is leviable @4% on the amount of income tax + surcharge.

  • Applicability of MAT-

Domestic company opting under section 115BAA and section 115BAB is exempted from the provisions of MAT. Accordingly, MAT provisions are applicable to domestic company opting under section 115BA.

 

Income tax slab for foreign company-

Particulars Corresponding Rates
Income tax rates 40%
Surcharge

·    2% for total income ranging between INR 1 Crore to INR 10 Crores.

·    5% for total income ranging above INR 10 Crores.

Health and Education Cess 4% of the amount of income tax + surcharge.

 

Income tax slab for Co-operative society-

Income Rates
Up to INR 10,000 10%
INR 10,001 to INR 20,000 20%
Above INR 20,000 30%
  • Surcharge-

Surcharge is leviable at the rates of 12% only when the total income exceeds INR 1 Crore.

  • Health and Education Cess-

Health and Education Cess is leviable @4% on the amount of income tax + surcharge.

  • Income tax rates for co-operative society opting under section 115BAD-
Particulars Corresponding Rates
Income tax rates 22%
Surcharge 10% of the amount of income tax
Health and Education Cess 4% of the amount of income tax + surcharge

Income tax slab for local authority-

Particulars Corresponding Rates
Income tax rates 30%
Surcharge 12% of the amount of income tax when the total income exceeds INR 1 Crore.
Health and Education Cess 4% of the amount of income tax + surcharge

 

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CA Poonam Gandhi is a Chartered Accountant and a Lawyer. With a wide practice experience and deep understanding of different laws and taxes, she has been an independent professional writer in the field of taxation, finance and laws.